The government today announced a Tk 3,424 crore stimulus package to tackle the fallout of global financial meltdown.

Finance Minister AMA Muhith this morning announced the much-expected recession package before the press at the ministry conference room.

The recession package would consist of cash subsidy, loan facilities as well as social security, said the finance minister.

Of the package, Tk 1,500 crore will go to agriculture sector, Tk 500 crore will be spent on agriculture loan recapitalization facility, power sector to get Tk 600 crore and social security (food) Tk 374 crore and export sector Tk 450 crore.

The export sectors, which will get the allocation, are jute and jute goods, leather and leather goods and frozen foods. Already Tk 1,050 crore has been allocated for the sectors in the present budget. Now the amount for these three sectors will be Tk 1,500 crore.

These three export-oriented sectors will get 2.5 percentage point increase in their existing cash incentives. Jute and jute goods will get 10 percent cash incentive, 2.5 percentage point up from existing 7.5 percent, leather and leather goods 17.5 percent, 2.5 percentage point rise from existing 15 percent, and frozen foods 12.5 percent, 2.5 percentage point up from existing 10 percent.

The finance minister said policy support and administrative planning have been adopted in the package apart from the cash incentives.

Regarding incentives to other export-oriented sectors including garments and textile, Muhith said different facilities including policy supports and bank loan rescheduling facilities have already been declared for these sectors.

Source: The Daily Star