NEC approves Tk227,566cr revised ADP allocation

The government has revised the allocation for the Annual Development Programme (ADP) to Tk227,566 crore, 7.51% lower than the original allocation, due to slow implementation of projects.

Initially, Tk246,066 crore was allocated for implementing the ADP.

The size of the revised ADP for FY23 has increased by 9.64% compared to the revised ADP for FY22.

The National Economic Council (NEC) approved the revised ADP at a meeting presided over by NEC Chairperson and Prime Minister Sheikh Hasina at the NEC conference room in Dhaka Wednesday.

Dr Shamsul Alam, state minister for planning, and Satyajit Karmaker, member of the Programming Division at the Planning Commission, presented the details of the revised ADP at a press briefing after the meeting.

The government will provide around Tk153,066 crore (67.26%) from its own fund, the same as the original ADP allocation. Around Tk74,500 crore (32.74%) will be collected from the external sources which is Tk18,500 crore lower than the previous estimation.

Implementing agencies will spend Tk8,994.58 crore for their projects. The size of the revised ADP is Tk236,560.67 crore including the cost of self-financed projects.

The revised ADP will have 1,627 projects with allocation.

According to the revised plan, the transport sector will receive the highest amount – Tk61,810 crore, which is 27.16% of the total allocation – to improve infrastructure.

The second highest amount – Tk38,316.59 crore (16.84%) – will be allocated for the power sector projects. The housing and community facilities sector will get around Tk25,938.53 crore (11.4%).

A total of 343 projects of the revised ADP will be completed this year.

A ministry- and department-wise breakdown shows that the Local Government Division has received the highest allocation – Tk39,560 crore. The Road Transport and Highways Division has received the second highest amount – Tk29,896.58 crore.

The Power Division got the third highest allocation – Tk25,246.65 crore, followed by the railway ministry and the science and technology ministry.

Senior officials present at Wednesday's press briefing said due to the government's cost reduction policy, it will not be able to spend all or part of the money allocated to many projects which are categorised based on their priorities.

However, Satyajit Karmaker said, the list of projects categorised according to their priority will be rearranged in a short time.

He said the ministries and departments can bring their "C" category projects to "B" or "A" categories if they want. The Planning Commission, the Finance Division will hold meetings with different ministries and departments in this regard.

In the wake of the Covid-19 situation and the Russia-Ukraine war, the government adopted an austerity policy to control inflation, manage foreign exchange reserves, increase fuel prices and ensure food security.

In this context, the government decided to stop releasing funds allocated for less important projects. The Finance Division issued a circular containing the list of A, B and C category projects – prepared by the Prime Minister's Office – at the beginning of the current fiscal year.

According to the circular, allocation for the "A" category projects has been kept intact, while 25% of the government share of funds allocated for the "B" category projects was deducted. The "C" category projects will not be able to spend any money in the current fiscal year.

All the projects powered by foreign aids are kept in the "A" category.

Asked about reducing the allocation of foreign aid in the revised ADP of the last few fiscal years, Satyajit Karmaker said increasing the use of foreign aid amid the current reserve crisis would have helped the country's economy, but it has not been happening for several reasons. It is not just a problem of the implementing agencies, bureaucratic complications of the development partners are also responsible for it.

He said a number of measures have been taken under the leadership of the principal secretary of the Prime Minister's Office to increase the use of foreign aid.

The State Minister for Planning Dr Shamsul Alam said the prime minister gave a number of instructions in the NEC meeting on Wednesday. She has urged everyone to be careful as any kind of danger can arise due to the current global economic situation.

He said, "Our demand situation is good due to controlling the country's imports. Now emphasis should be placed on increasing production to ensure supply. In this context, the prime minister said we have improved our Aman paddy production, now we have to emphasise on increasing the production of Boro.

"The prime minister asked the authorities concerned to be more cost-effective in implementing the projects. She has also asked the authorities to promptly finish all the projects which are in the final stages. The projects that would generate income and create employment should be completed quickly."

The prime minister has also asked to slowly implement the projects for which spending funds are not necessary at present, said the state minister.

Dr Alam said, "The prime minister emphasised on skill development. She has asked to prepare a list of all the projects which have been completed but cannot be started due to lack of manpower. Skilled manpower should be appointed in all these institutions. The prime minister has directed the National Skills Development Authority to coordinate the matter."