Govt rolls out new stimulus worth Tk 27.0b for small businesses


FE Team | Published: January 17, 2021 17:24:05 | Updated: January 18, 2021 08:27:22


Govt rolls out new stimulus worth Tk 27.0b for small businesses

The government has announced two more stimulus packages worth Tk 27 billion to help small, medium and cottage industries and expand social safety coverage.

Prime Minister Sheikh Hasina has approved the new packages to cushion small businesses against the effects of the pandemic, the finance ministry said in a statement on Sunday, reports bdnews24.com.

Bangladesh has so far announced 23 stimulus packages, amounting to Tk 1.24 trillion or 4.44 per cent of gross domestic product.

The latest stimulus programmes will be implemented soon, according to the statement.

One of the latest packages amounts to Tk 15 billion, including Tk 3 billion to the SME Foundation, Tk 1 billion to Bangladesh Small and Cottage Industries Corporation and Tk 500 million to Joyeeta Foundation.

Besides, NGO Foundation will receive Tk 500 million, Social Development Foundation Tk 3 billion, Palli Daridro Bimochon Foundation Tk 3 billion, Khudro Krishak Unnayan Foundation Tk 1 billion and Bangladesh Palli Unnayan Board Tk 3 billion for the people from the marginal groups.

Under the second package of Tk 12 billion, the elderly people, widows or destitute women in 150 upazilas will be brought under an allowance programme in fiscal 2021-22.

After the pandemic hit Bangladesh in March, the government announced separate loan incentives for the big, medium and small industries. Those were already distributed among the selected recipients.

Economists then recommended new stimulus package during discussions with the Finance Division in November after assessing the impact of the first stimulus programme.

Government officials, business leaders, bankers, representatives of development organisations, researchers and media representatives participated in those meetings.

They recommended steps to prop up the rural economy, elevate the standards of life for the people from marginal groups and expand the social safety coverage for the poor in order to achieve the goal in poverty reduction.

 

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