Agricultural crop loans declined alarmingly in the seven months leading upto January making production prospects for the current Boro crop bleak.

New disbursements were over Taka 150 crore less than the amount of recoveries of past loans. This showed a reverse flow of crop credits.

The situation was extensively reviewed on Saturday at an inter-ministerial special committee meeUng at the

Planning Commission.

The special committee of ECNEC also discussed the economic situation now obtaining tn the country in the back-drop of the Gulf war.

The Executive Committee of National Economic Council (ECNEC) earlier constituted thia spectai committee to pe-rlodlcally monitor the economic performance

Al its fourth fortnightly meeting on Saturday the Committee mainly focused Its

attention on agricultural production activities during the current Boro season.

While new farm credit disbursements were negative In the first seven months of fiscal 1990-91, the domestic food-grain procurements were also far short of the target. Only half of the annual procurement target of 3.50 lakh tons was achieved The special committee area Informed that attainment of the target would be impossible during the months up to June because most procurements were normally made after Aman-harvestlng starting from mid November.

Official sources said the overall situation until January showed no major dislocations In the external sector even after the Gulf crisis that began in early August. Remittances were still up in January and stood at 60 million Dollars compared with a monthly average of 55 million Dollars. Higher receipts were because oanicky wage-earners in the Gulf sent man money home after the war broke out.

Export earnings totalled 868 million Dollars between July and January and were only 17 million Dollar short of the target for the period. A much higher shortfall was anticipated earlier.

Government tax receipts particularly those collected by National Board of Revenue

(NBR) were also only six per cent lower than the target in the first half of fiscal 1990-91. The shortfall was mainly in excise duty collections.

But the sources said the economic situation would be under strains in next two or three months. There arc already quite a number of disturbing signals. The opening of Import Letters of Credit (LCs) has slowed down in recent months. Total LC openings were for Taka 5901 crore tn the first half of 1990-91 compared with Taka 6132 crore In the corresponding period last year. Import stacks will lower collections of customs duty and sales tax. in coming months the sources added.

They pointed out that public development expenditures up to January stood at only 40 per cent of the Annual Development Programme of Taka 5668 crore for 1990-91. The implementation shortfall will adversely affect project aid disbursements-

Mdreover. the overall government revenue receipts in the current fiscal year will also be affected because of financial problems of public sector corporations. and lower profits by the nationalised commercial banks. Non tax revenue earnings from these two sources constitute 25 per cent of total annual receipts.