Web Portals for Bangladesh Bangladesh News Bangla Music Bangladesh Mobile Bangladesh Sports
Subscribe to Bangladesh News RSS Feed Bangladesh News RSS Feed Add to Google Reader or Homepage Add to netvibes Add to Pageflakes  Windows Live Alerts
Get Daily News By Email:   
[ Add Bangladesh News To: Your Site/Blog, Facebook or Google Gadget ]

Govt borrowing spirals upward


Posted on Tuesday, December 19th, 2006 at 1:44 am
[ Comments RSS Comments RSS ] [ Trackback Link Trackback URL ] [ PDF Version Download PDF ]

Government borrowing from banks has shot up by a staggering 32 percent in the first five months of the current fiscal year compared to the last fiscal year’s same period due to low revenue income and a massive drop in foreign aids.

To rein back the borrowing spree, the caretaker government has decided to tighten regulations and scrutinise project fund disbursements under the Annual Development Programme (ADP) more closely.

From July to November the amount of government borrowing stood at Tk 4,661 crore, compared to Tk 3,547 crore in the corresponding period of last fiscal year.

Finance ministry sources fear that the government might be forced to borrow even more due to additional spending required for the elections and chances of fall in revenue earning caused by political instability.

A finance ministry high official, preferring anonymity, said the government will review the ADP projects and will only approve their funds if the projects are deemed important.

The finance ministry last month instructed all ministries to send all projects approved by Executive Committee of the National Economic Council (Ecnec) after July 1, 2006, to the planning ministry and Finance Division for review. The ministries were also asked to include all ADP projects yet to spend 10 percent of their designated budgets.

National Board of Revenue (NBR) sources said the government borrowing has increased in the first half of this fiscal year because the government failed to increase revenue income by the targeted 21 percent in the first four months, managing to earn only 8 percent. In the corresponding period last year, revenue income increased by 15 percent.

The government’s borrowing troubles have been compounded by net foreign aid dropping by a staggering 81 percent in the first three months of this fiscal year, with only $35.19 million coming in, compared to $179.64 million in the last fiscal year.

Planning ministry sources say the immediate past government marginalised the donor-funded projects because they were busy implementing the government funded projects due to greater opportunities for ‘corruption’ and to boost popularity before the upcoming elections.

Meanwhile, an increase in government spending also forced a rise in government borrowing. It was learnt, the government spent nearly 13 percent of its annual ADP budget, mostly with local funds, within the first three months of the current fiscal.

In the same period last year, only 6 percent of the ADP budget was spent.

Link to this news:
 
        
    
Tags: , , , , , , , , , , ,
This entry was posted on Tuesday, December 19th, 2006 at 1:44 am and is filed under Bangla, Bangladesh, Bangladesh Economy, Bangladesh News, Daily Bangladesh News, Economy, News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

Comments are not moderated and only expresses personal views of visitors. BangladeshNews.com.bd is not responsible for commets posted by visitors.

Leave a Reply

People come here looking for: bangladesh government holiday 2008 (14), bangladesh holiday 2008 (6), bangladesh government holidays 2008 (5), holiday list of bangladesh 2008 (5), holidays in bangladesh 2008 (4), bangladesh holiday list 2008 (4), holiday list bangladesh 2008 (4), bd government holiday 2008 (4), Government holidays 2008 bangladesh (4), holiday list + Bangladesh + 2008 (4), abc (4), Bangladesh govt holiday list 2008 (3), Holiday list of 2008 in Bangladesh (3), govt holidays list 2008 + bangladesh (3), Bangladesh govt. holiday list 2008 (3), government holiday 2008 in bangladesh (3), Bangladesh government holiday list 2008 (3), holiday 2008 bangladesh (3), Govt of Bangladesh Holiday list 2008 (3), government holiday of bangladesh 2008 (3), government holiday in bangladesh 2008 (3), Local Govt. Bangladesh (2), national holidays (2), increase government borrowing (2), Government Borrowing (2), annual budget in Bangladesh 2007-2008 (2), Govt Holidays in Bangladesh in 2007 (2), bangladesh government holiday list (2), Bangladesh govt holiday in 2008 (2), Bangladesh Gov. Holiday (2), BD government holiday list 2007 (2), bangladesh govt holiday 2008 (2), Govt. Holiday list bangladesh 2008 (2), 2008 Bangladesh Government holidays (2), list of govt holiday 2008 in bangladesh (2), govt holidays of Bangladesh, 2008 (2), Bangladesh govt holidays 2008 (2), List of Holidays (2), amount of national budget of bangladesh in 2006-2007 (2), government holiday list of 2008 in bangladesh (2), Bangladesh government holiday list for the year 2008 (2), bangladesh list of holidays in 2008 (2), govt holiday bangladesh 2007 (2), holiday list-2008 (2), "Bangladesh Government Holiday" - for 2008 (2), Government holidays in 2008 (2), Govt Holiday List 2008 Bangladesh (2), Holidays of the year 2008 of Bangladesh (2), list of government holiday of bangladesh 2008 (2), all (2),