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President Donald Trump's first budget outline, calling for a security-heavy realignment of federal spending, drew resistance on Thursday from his fellow Republicans in the US Congress as many balked at proposed deep cuts to diplomatic and foreign aid programs. Conservatives have plenty to like in the White House plan, with its 10 per cent increase in military spending next year and beefed-up funding to help deport more illegal immigrants and build a wall on the border with Mexico. It also takes steps to downsise government, a central goal of conservatives. But the gaze into Trump's priorities for the next four years proved too savage for many Republicans' taste, foreshadowing an intense battle between Congress and the White House over spending in coming months. Although Republicans control both the Senate and House of Representatives, Congress holds the federal purse strings and seldom approves presidents' budget plans. The administration asked Congress for a 28 per cent, or $10.9 billion, cut in State Department funding and other international programs to help pay for a 10 per cent, $54 billion hike in military spending next year. "These increases in defense come at the expense of national security," said Republican Senator Lindsey Graham, who has not hesitated to take on Trump. Republican Senator Marco Rubio, who like Graham ran unsuccessfully for president in 2016, levelled similar sentiments, as did some prominent Republicans in the House of Representatives. House Speaker Paul Ryan sidestepped reporters' questions about whether he supported State Department cuts, saying the White House blueprint was just the start of the budget process. The budget also drew criticism internationally. The French ambassador to the United Nations, Francois Delattre, warned that cutting funding of global programs could fuel instability. ELECTION PROMISES The White House shrugged off concerns about the impact, saying Trump was making good on election promises. "The president said, specifically, hundreds of times - you covered him - 'I'm going to spend less money on people overseas and more money on people back home' and that's exactly what we're doing with this budget," Trump's budget director, Mick Mulvaney, told reporters. Democrats, whose votes would be needed later this year to sign off on the spending bills that implement any budget blueprint given the slim Republican hold on the Senate, attacked the proposed reductions to the Environmental Protection Agency and programs that benefit the poor. The White House proposal would inflict a 31 per cent, or $2.6 billion, cut on the EPA. Some veteran Republicans, including Senator Rob Portman of Ohio, a White House budget chief during the administration of President George W Bush, vowed to preserve the EPA's Great Lakes restoration program that Trump wants to eliminate. Moderate Republicans expressed unease with potential cuts to popular domestic programs. Lisa Murkowski, who chairs the Senate Energy and Natural Resources Committee, attacked plans to cut or eliminate programs that help the poor pay heating bills, provide aid for localities to deal with wastewater and subsidise air travel in rural areas like her home state of Alaska. "We need to remember that these programs are not the primary drivers of our debt," Murkowski said. In fact, those "discretionary" programs that must be renewed annually by Congress, account for about $1.2 trillion out of a $3.9 trillion federal budget. The biggest portion of the budget - about $2.4 trillion - is for "mandatory entitlement" programs that provide Social Security retirement benefits and Medicare and Medicaid healthcare for the elderly, poor and disabled. Conservatives have been clamouring for years for reforms to those programs to save money. Trump vowed, however, to protect them as he campaigned for president last year. Trump was silent on those programs in the plan released on Thursday, but they will be included in a fuller fiscal blueprint due out in mid-May that will project spending and revenues over 10 years. It is unclear if any reforms for those programs will be part of that budget. Other discretionary cuts proposed by Trump included community development grants at the Housing Department and more than 20 Education Department programs. Funding would disappear for 19 independent bodies that count on federal money for public broadcasting, the arts and regional programs. "Throwing billions at defense while ransacking America’s investments in jobs, education, clean energy and lifesaving medical research will leave our nation weakened," said House Democratic leader Nancy Pelosi. DEFENSE MONEY FOR CURRENT YEAR Trump also asked for $25 billion more for core Defense Department programs for the current fiscal year, as well as $5 billion more for combat operations. A detailed copy of that request seen by Reuters showed some of the funds would be for procurement of technology such as F-35 fighter aircraft and drone systems. About $13.5 billion of the supplemental request was earmarked for aircraft, missiles and ships. It included THAAD missiles, Blackhawk helicopters and F-35s made by Lockheed Martin Corp (LMT.N), as well as F/A-18 warplanes and Apache helicopters manufactured by Boeing Co (BA.N). Also for this fiscal year, Trump requested $3 billion more for the Department of Homeland Security, with some of that money intended for planning and construction of the border wall that he made a major part of his 2016 election campaign. Congress will likely consider the supplemental request by April 28, when regular funding expires for most federal agencies. The budget outline also does not incorporate Trump's plan for sparking $1 trillion in investments to build roads, bridges, airports and other infrastructure projects. The White House has said the infrastructure plan is still to come. The planned defense increases are mainly matched by cuts to other programs so as to not increase the $488 billion federal deficit. Despite the proposed big cuts to the EPA and the State Department, Mulvaney said their "core functions" would be preserved. Reflecting Trump's repeated election campaign pledge to reduce illegal immigration, the Department of Homeland Security would get a 6.8 per cent increase, with more money for extra staff needed to catch, detain and deport illegal immigrants. Trump wants Congress to approve $1.5 billion for the border wall in the current fiscal year - enough for pilot projects to determine the best way to build it - and a further $2.6 billion in fiscal 2018, Mulvaney said. The estimate for the total cost of the wall will be included in the upcoming full budget. Trump has repeatedly said that Mexico will pay for the wall. Mexico has adamantly said it will not. Since Trump took office in January, the White House has said funding would be kick-started in the United States.  ....

Published at: 2017-03-17 00:00:05

They spent the night in anxiety that turned into panic during blasts and gunshots rocking Premtala in Chittagong's Sitakunda.  When the 20 residents of 'Chhayaneer', the house raided by the law enforcers, were evacuated early in the morning on Thursday, a vacant look was clear in their eyes. Those residing in the entire area were anxious during the 19-hour raid. SWAT members cut the window grills to take out Hasina Begum, 65, and the other members of her family from the first floor of the two-storey house after the drive. Before being taken to the hospital after the evacuation, she said, "I didn't think I could survive the shooting overnight. But by the grace of Almighty, we all could come out safely." Four suspects, three male and one female, were killed. Two died in a suicide blast and the remaining two were shot dead by police, reports bdnews24.com. The body of a child was also found later. The 6-year-old was believed to be killed in the suicide blast. Police's counter-terror official Sanwar Hossain said the bomb disposal unit diffused seven bombs and three suicide vests found in the house. Sitakunda police launched the raid on Wednesday afternoon based on information divulged by a ‘militant couple’ arrested from a flat at Sitakunda’s Namar Bazar. Police and SWAT members surrounded the house after a grenade hurled from inside the building injured an officer. They were later joined by personnel from the counter-terror unit and the bomb disposal unit. Law enforcers, after surrounding the building for 19 hours, stormed inside around 6:30am on Thursday. Witnesses said the gunfire and powerful explosions could be heard in the area for about seven to 10 minutes. Twenty people who were trapped inside were then evacuated from the house. Police contacted them earlier on Wednesday night and asked them not to come out. They spent the whole night inside the house amid uncertainty, keeping the doors and windows closed. A 90-year-old woman was taken out after defusing the bombs on Thursday afternoon. One of the other evacuees, Yasmin, said, "We tried to come out yesterday, but police asked to stay inside. I heard people walking on the floor over us throughout the night. "And then the sound of explosion following the shout: 'Allahu Akbar'! I can't say how much panicked we were!" she said. Grocer Shaheedul Islam, who resides at a house next to 'Chhayaneer', said no one at his house could sleep in the night. "The panic increased when the explosion rocked the area at dawn," he said. Local Ward Councillor Shafiul Alam Murad thanked the law-enforcing agencies for the safe evacuation of the residents. "We were very anxious as innocent people were trapped inside the house." Chittagong Superintendent of Police Noore Alam Mina said it was a very tough job to evacuate the residents of the house unharmed. "But we could finish the job." He also said the police were keeping an eye on the area to check whether there is any other militant hideout.  ....

Published at: 2017-03-17 00:00:05

CHITTAGONG, Mar 15: Chittagong City Corporation (CCC) on Wednesday proposed projects worth Tk 15 billion under the infrastructure development and income generating project, seeking fund from the World Bank (WB). The proposals included construction of buildings in the city corporation area, widening of roads, construction of office-cum-community centre, kitchen market development, traffic management and other multipurpose income generating projects. The projects, if accepted, would be implemented through the Bangladesh Municipal Development Fund (BMDF), city corporation officials said. City Mayor AJM Nasir Uddin made the proposals at a meeting in his office with BMDF managing director Syed Hasinur Rahman, company secretary Nasir Ahmed Chowdhury, World Bank consultant Ishita Alam Labony and senior urban officer Christopher Pablu. The city corporation officials said they discussed in details about the feasibility study on the projects, which were finalised after necessary scrutiny. The Mayor said the World Bank is considered as one of the prime partners of infrastructure development in Bangladesh. He said the projects would bring about massive changes to the city. Ward councillor HM Sohail, CCC acting chief executive officer Abul Hasan and superintending engineer Rafiqul Islam Manik were present on the occasion, among others. pankajdastider@gmail.com....

Published at: 2017-03-16 00:00:04

Bangladesh moves to make a strong case to the United Nations (UN) next week for LDC graduation as it wants to avail the next triennial review of eligibility criteria in 2018. If the move sails through, official sources said, the targeted graduation of the country out of the club of world poor may be accomplished by the year 2024. Bangladesh has already reached necessary threshold levels for LDC graduation for two major criteria set by the UN and is expected to stand all three tests by next year, they said.     "We have already met the threshold of Economic Vulnerability Index and Human Asset Index while we are expecting to meet the threshold of Gross National Income by next year," Member of the Planning Commission Prof Dr. Shamsul Alam told FE Wednesday. A high-level government delegation led by Professor Alam will present the Bangladesh case at the plenary meeting of the Committee for Development Policy (CDP) of the UN in New York which will allow the country to be considered for the next LDC (least developed country) graduation review in 2018. The delegation to the meeting will also include Secretary of the Economic Relations Division. As per UN provisions, inclusion and graduation of LDCs are based on three criteria: per-capita gross national income, human assets, and economic vulnerability to external shocks. To be eligible for graduation from least developed countries, a country must reach threshold levels for graduation for at least two of these three criteria, or its GNI per capita must exceed at least twice the threshold level. "In the Economic Vulnerability Index, where the score needs to be 32 or less, Bangladesh's score is 25.03, whereas in Human Asset Index, we have already attained a score of 69.9 -- well above the threshold of 66," Prof Alam said. The CDP review process takes place every three years and the last review took place back in 2015. However, at the time, Bangladesh had met only one graduation threshold -- Economic Vulnerability.   "When it comes to Gross National Income, our GNI per capita is US$ 1156, slightly below the threshold of US$ 1242. However, we are expecting to reach that threshold as well by the time of the next CDP review in 2018," he added. "While it is enough to meet the thresholds of just two criteria to be eligible for LDC graduation, we will hopefully go to the 2018 CPD review with all the criteria met," the PC member said on a note of optimism about making a decisive graduation move this time around.        As per the current provisions, a country needs to be eligible in two consecutive CDP reviews before any recommendation is made. Therefore, Bangladesh will have to meet these same criteria again in 2021 to be recommended by CDP for graduating from the LDC status.   "We are hopeful that we will receive the final CDP recommendation in the year 2021," Prof Alam said. "Consequently, with the endorsement from the ECOSOC and approval from the UN General Assembly, Bangladesh will formally graduate from LDC status in 2024."   Even if Bangladesh graduates by 2024, the country will be able to enjoy LDC preferential treatment up to the year 2027. Experts have long noted that the loss of LDC status at graduation may give rise to potentially important economic costs due to withdrawal of GSP facilities from the European Union, Canada, Japan, Australia and other markets.   Currently, Bangladesh enjoys a 12 per cent preference margin for its apparel industry under EU's 'Everything but Arms (EBA)' Initiative which gives it a substantial price advantage. It has also been noted that as Bangladesh is expected to graduate concurrently from both United Nations and the World Bank classifications, options for concessional financing will also dry out. Professor Alam, however, holds the hope that Bangladesh's exporters will gain enough capacity within the next ten years to retain their momentum once the GSP facilities are gone. "In ten years time, we will hopefully diversify our exports and will move for high-end products to retain our competitive edge even without preferential facilities," he said. "Graduation from LDC will come with its own challenges," said Dr Khondaker Golam Moazzem, Director of the Centre for Policy Dialogue, a leading think-tank in the country. "To overcome those challenges and to ensure a smooth transition, we will need structural transformation of our economy -- we need to diversify our export and we need to shift towards more productive and hi-tech manufacturing," he added. mehdi.finexpress@gmail.com....

Published at: 2017-03-16 00:00:04

Bangladesh is likely to propose addition of Japanese yen (JPY) as the third currency to the basket of the Asian Clearing Union (ACU) aiming to facilitate payment among its member countries for eligible transactions, officials said. Presently, US Dollar and EURO (EUR) are being used for payment among the member countries Some transactions between Bangladesh and Iran remain incomplete due to a US sanction on Iran. Banking transactions were not being made with Iran, although Bangladesh has dollar and EURO accounts with the country under the ACU mechanism, a BB source said. The next Board of Directors meeting of the ACU would be held in July next  in Sri-Lanka, where the inclusion of JPY in the ACU basket will come up for discussion,  he added. Banking transactions would be easier further between the two countries alongside other ACU member countries, if the JPY is added to the ACU currency basket like EURO and dollar, he also said. Finance Minister AMA Muhith and Iranian ambassador to Dhaka Abbas Vaezi met last year where they discussed different bilateral issues, especially problems with banking transactions faced by the two countries. At the meeting, the minister assured Vaezi of taking necessary steps to resolve various existing problems. The finance minister also gave assurance about his support for including JPY as the third currency in the ACU basket. Presently, Bangladeshi banks cannot establish corresponding banking directly with the Islamic republic due to a US sanction on Iran. As a result, export and import between the two Asian countries have decreased significantly. Currently, exports and imports between the two Muslim countries are taking place through a third country, a high official of the BB said. Banking transaction would be easier with the Islamic state. The volume of trade between the two countries will increase may times if JPY is accepted by the ACU as the third currency, he said.   Currently, there are nine central banks under the ACU system. They are: Bangladesh Bank, Royal Monetary Authority of Bhutan, Reserve Bank of India, Central Bank of the Islamic Republic of Iran, Maldives Monetary Authority, Central Bank of Myanmar, Nepal Rastra Bank, State Bank of Pakistan and Central Bank of Sri Lanka ACU is a payment arrangement whereby the participants settle payments for intra-regional trade among the participating central banks on a net multilateral basis. In February last total transactions channelled through the ACU amounted to US$ 984.00 million, posting a fall of 8.44 per cent from that of January, the previous month. In comparison with the corresponding figure of last year, there is a growth of 11.39 per cent, according to the monthly newsletter of the ACU. The main objectives of the clearing union are to facilitate payments among the member countries for eligible transactions, thereby economising on the use of foreign exchange reserves and transfer costs, as well as promoting trade and banking relations among the participating countries.   The Asian Clearing Union, established in 1974 under the auspices of UNESCAP (United Nations Economic and Social Commission for Asia and the Pacific), began its operation in November, 1975. rezamumu@gmail.com....

Published at: 2017-03-16 00:00:04