Four new stimulus packages of Tk 67,750 crore have been announced by the government by way of facing the economic disaster being caused by the spread of coronavirus.
With the previously announced Tk 5,000 crore stimulus package to the garment sector workers the amount of the total package now stands at Tk 72,750 crore.
In order to contain the impact of the pandemic, the government simultaneously took four programmes under the work plan to be implemented in phases categorised as “immediate, short and long”.
The four programmes are: Increasing public expenditure, formulating a stimulus package, widening the social safety net coverage and increasing monetary supply.
In the four new packages, the government would provide working capital of Tk 30,000 crore for the COVID-19 affected industries and service sector bodies. The commercial banks will provide the loans from their resources to the industries or business entities concerned based on bank-client relationship.
In the second package, the government will provide Tk 20,000 crore as working capital to SMEs. The commercial banks will provide the loans from their resources to the industries or business entities concerned based on bank-client relationship.
In the third package, the Bangladesh Bank will expand its EDF (Export Development Fund). Aiming to increase the facility for importing raw materials under the back-to-back LC system, the central bank will enhance its EDF facility from $3.5 billion to $5 billion.
As a result, some Tk 12,750 crore, equivalent to $1.5 billion, will be added to the respective fund. Earlier, a stimulus package of Tk 5,000 crore was announced for export-oriented industries to fight the adverse impact of coronavirus. This money will be used only for providing the salaries and wages of workers and employees.
It is the worry of everybody that with the notoriously built-in system of corruption in the government remaining unchanged there is no assurance that the money will not be looted by the looters.
The government has no accountability so the corruption exists as an indomitable force.
How to inject the truth and transparency in spending public money is to be made clear. We wait for suggestions from independent economists.
