The Financial Express

SoEs' profit fall squeezes FY17 revenue earnings

NTR receipts from their dividends, profits stand over 29pc short of Tk 323.50b target

| Updated: November 30, 2017 18:45:33

Internet Photo used only for representation Internet Photo used only for representation

Country's revenue from the second-biggest source shrank in 2016-17 as receipts from dividends and profits of the state-owned enterprises (SoEs) fell over 29 per cent short of Tk 323.50-billion target.

Official figures show such drastic fall in the non-tax revenue (NTR) from a number of departments, autonomous bodies and similar organisations against the aforesaid original target.

Sensing a sharp decline in the NTR, the Finance Division had revised the target downward by Tk 61.11 billion to Tk 262.39 billion. But the key sources of revenue also failed to meet the revised target in the past fiscal year till June 30 last, according to the statistics the Financial Express (FE) came across.

The falling trend in NTR in terms of receipts also got carried over into the first quarter of the current financial year (FY), 2017-18).

The consolidated funds received amounted to just Tk 68 billion in July-September last against the whole- year target of Tk 311.79 billion for the current fiscal year.

However, some officials at the Ministry of Finance (MoF) told the FE that many SoEs turned losing concerns which led to the fall in revenues from them.

They also said there are some autonomous bodies which make much profit but the government cannot force them to pay increased amounts of revenue.

"Under the existing laws there are some provisions that go in favour of the autonomous bodies as they can retain profits on grounds of future expansion or other purposes," an official at the NTR wing of the Finance Division told the FE.

People familiar with the developments at the Finance Division told the FE that a number of departments and autonomous bodies failed to provide resources at expected level in the year under review. They said dividends and profits, including from the central bank, dropped significantly in the year to June 30 last. The national exchequer received Tk 32.32 billion under the head against the target of Tk 79.22 billion.

"Another source is fees, royalty, tolls and others revenue from which also fell significantly," said an official at the finance division. He said revenue from the Department of Immigration and Passports also got squeezed as new issuance of MRPs decreased.

However, people working at the NTR wing of the Finance Division said this year government will earn adequate amount from the Ministry of Posts and Telecommunications.

The government may raise some Tk 110 billion in non-tax revenue from 4G auction as Bangladesh graduates to the fourth-generation broadband cellular technology.

"We're estimating that the government will mobilise around Tk 110 billion from 4G auctions, including technology-neutrality fees," an official at the Ministry of Posts and Telecommunications told the FE.

He said the auctions will be completed by December, in the process of introduction of the fourth-generation (4G) technology.

The government has set base price of $27 million per MHz in 2100 band and $30 million per MHz in both 1800 and 900 bands. However, there were some improvements in terms of surpassing receipt estimations like the fines and penalties, rent lease and recoveries and tools.

[email protected]com

Share if you like