Wednesday, 22 May, 2024, 10:57 AM
Advance Search

Economic pressure forces govt to keep ADP size slim

Published : Thursday, 16 May, 2024 at 12:00 AM  Count : 223

The government is not increasing the size of the Annual Development Programme (ADP) because of the ongoing economic pressure in the country. The total allocation in ADP for the upcoming fiscal year 2024-25 is Tk 265,000 crore, which is only Tk 2,000 crore more than last fiscal year. This development budget will be approved at the National Economic Council (NEC) meeting of the Planning Ministry today (Thursday). Prime Minister Sheikh Hasina will preside over the meeting.

The total allocation of foreign loans or grants is targeted at Tk 100,000 crore. However, this time too, the transport and power sector is being given the most importance in the development budget. There is relatively more money allocation in these two sectors.

On March 14, the Planning Commission gave instructions to prepare the ADP for the fiscal year 2024-25. In view of that directive, a total initial demand of Tk 276,402 crore for ADP has been received from all the implementing ministries and Divisions. Out of this, government funding is Tk 185,000 and project loan-grant Tk 91,011 crore.

Besides, the total amount of allocation for 10 development assistance sectors is Tk 9,958 crores. Tk 13,286 crore proposed in favour of projects under implementation by autonomous bodies/corporations. The total size of the proposed ADP for the fiscal year 2024-25, including the autonomous bodies/corporations own funding, stands at Tk 278,286 crores Later, according to the instructions sent by the Finance Division, the ADP for the fiscal year 2024-25 was fixed at Tk 265,000 crore and informed the Operations Division . Of this, government funding is Tk 165,000 crore or 62.26 per cent. The target of foreign loan-grant to meet the development expenditure is Tk 100,000 or 37.74 per cent.

In the revised ADP for the fiscal year 2023-24, the amount of foreign debt was Tk 83,500 crore. According to that, the amount of foreign debt in ADP is increasing by Tk 16,500 crore in one fiscal year.

The government is giving maximum importance to the transport and power sector in the new development budget. It is seen that the size of the proposed ADP for the fiscal year 2024-25 is Tk 20,000 crore more than the original ADP of the fiscal year 2023-24 and Tk 20,000 crore more than the revised ADP.

Out of the size of the new ADP, the total amount of allocation in favour of 57 Ministry-Divisions projects under the scope of 15 sectors is Tk 258,671 crore. Out of this, GOB part is Tk 164,000 crore and project loan grant is Tk 94,671 crore.

In the new ADP, power and transport sectors are being given utmost importance. The total allocation for the transport and communication sector is Tk 70,687 crore, which is 28.88 per cent of the total ADP. The second highest allocation is Tk 40,751 crore to the power and energy sector. Tk 31,528 and Tk 20,682 crores are allocated to the health sector.

In the new ADP, the maximum allocation of 38 thousand 808 crore 88 lakh Taka will be given to the Local Government Division. After that, 32 thousand 42 crores will be allocated to the Road Transport and Highways Division, 29 thousand 176 crores to the electricity sector, 16 thousand 135 crores to the primary and mass education ministry, and 13 thousand 741 crores to the Health Care Division.

After scrutinizing 1,894 unauthorized new projects received from various ministries and divisions, 1,223 projects were recommended for inclusion in the annual development programme for the fiscal year 2024-25. If these unauthorized new projects are subsequently approved by the appropriate authorities or if there is a special need for additional funds in the ongoing projects, those projects are financed from the ADP. For that purpose, in the proposed ADP for the fiscal year 2024-25, Tk 16,872 crore have been allocated for ministry/division  wise ulk allocation under various sectors.

The proposed ADP for the fiscal year 2024-25 includes 79 projects under implementation entirely self-financed by the autonomous bodies or corporations and 102 projects with self-financing participation of the bodies along with GOB and project assistance. A total of Tk 13,286 crore has been proposed for these projects.

According to the Planning Commission, Bangladesh Delta Plan-2100, Bangladesh Development Plan-2041, Prospective Plan (2021-2041), Eighth Five Year Plan (July 2020-June 2025), United Nations declared sustainable development to achieve the desired development by confronting climate change. Adequate resources will be allocated to priority sectors in the light of the goals (SDGs) and various existing policies.

Through this, ADP was formulated keeping in mind the goal of achieving higher growth, reducing poverty and improving peoples living standards, health and safety and dealing with the Covid-19 situation, etc., and making Bangladesh a developed country by 2041.

In terms of allocation of funds, priority should be given to projects related to rehabilitation of agriculture, agro-based industries, power sector, increase in efficiency of labour force, poverty alleviation and natural disasters such as cyclones, floods, floods, heavy rains, etc. for the purpose of food security.

For this purpose, the process of preparing the ADP for the fiscal year 2024-25 was taken up. During the formulation of the ADP, among other things, creation of more employment opportunities to maintain the macroeconomic stability of the country, development of communication infrastructure, increase in power and energy supply, human resource development, maintaining food self-sufficiency, agricultural development and agricultural mechanization, ensuring health care and health education for all, Local Government strengthening, women empowerment, crime prevention, establishing good governance, rural infrastructure development, sanitation and safe water supply, quality education system (primary, secondary and vocational), extension and development of information and communication technology related programmes have been given special importance.

As in other years, the ADP has been formulated with the aim of maintaining the continuity of achieving higher growth by ensuring the best use of limited domestic resources by facing the global shocks caused in the context of the recent uncertainty of the world economy, said the Planning Commission.

Instructions have been issued by the Planning Commissions Operations Division for the preparation of the Annual Development Programme or ADP for the fiscal year 2024-25. Notable among the guidelines followed are - Only approved projects and projects included in ADP can be included in ADP with allocations. New sanctioned projects cannot be included in ADP without inclusion in software along with issuance of approval orders and administrative orders. That is, the allocation proposal should be submitted along with the approval order and administrative order of the new sanctioned project.

In terms of allocating money to ADP, keeping in view the current global economic context, with the aim of food security, agriculture, agro-based industries, power sector, increasing the efficiency of the labour force, poverty reduction and rehabilitation projects related to the damage caused by natural disasters such as cyclones, floods, heavy rains etc. should be prioritized. Besides, special priority should be given in allocating projects related to green and climate change.

Mega projects and projects slated for completion in FY 2024-25 should be prioritized in terms of allocation. As per the decision of the NEC meeting, any project listed as scheduled for completion in the RADP for the fiscal year 2023-24 cannot be proposed for inclusion in the ADP for the fiscal year 2024-25. If cash foreign exchange is required in the GOB portion of the ADP allocation, the allocation should be proposed at the prescribed location.

Latest News
Most Read News
Editor : Iqbal Sobhan Chowdhury
Published by the Editor on behalf of the Observer Ltd. from Globe Printers, 24/A, New Eskaton Road, Ramna, Dhaka.
Editorial, News and Commercial Offices : Aziz Bhaban (2nd floor), 93, Motijheel C/A, Dhaka-1000.
Phone: PABX- 41053001-06; Online: 41053014; Advertisement: 41053012.
E-mail: info©, news©, advertisement©, For Online Edition: mailobserverbd©
  [ABOUT US]     [CONTACT US]   [AD RATE]   Developed & Maintenance by i2soft