Hasina turns on three-phase fiscal taps to cushion Bangladesh coronavirus impact

Prime Minister Sheikh Hasina has rolled out three-phase plans to cushion the shock of the coronavirus outbreak to Bangladesh’s economy.

In a televised address to the nation on the eve of Bengali New Year, she said the government has already announced an economic stimulus package of around Tk 956.2 billion, which is 3.3 percent of the country’s GDP.

Hasina said the government has set out four basic jobs spread over in three phases - for immediate implementation in the last three months of the current fiscal year, short-term programmes for the next fiscal year and mid-term programmes for the next three years.    

The four tasks will be:

1) increase government’s expenditure prioritising creation of jobs;

2) initiate packages of financial stimulus: reviving economic activities, retaining workers in jobs, and upholding the entrepreneurs ability to compete;  

3) expand social safety net to meet the basic needs of the people below poverty line, those who live from hand to mouth, and those engaged in informal work; and

4) boost flow of cash in such a way that will not cause inflation.

The prime minister described the situation in the global context. She noted that Bangladesh was already undergoing a 32-day shutdown to slow the spread of the virus.

She said there was still no shortage of food, but stressed the need for boosting agriculture production to avoid any crisis in future.