Ministries now allowed to spend 75% of ADP allocations

Amid the ongoing pandemic, the ministries and agencies concerned can spend 75% of the money allocated from the government fund for the Annual Development Programme (ADP) in the current fiscal year, said the finance ministry.

The finance ministry asked all the ministries to preserve 25% of the allocation as there is a concern that the revenue target may not be reached under the current circumstances.

As a result of this initiative, the government will save Tk33,661 crore from the ADP in this fiscal year.

At the same time, the finance ministry has informed the ministries and divisions concerned that they cannot demand more money for operation and development costs.

After allocating more than Tk2 lakh crore for development projects in the current budget, the Finance Division suspended allocations for different sectors as a part of cost savings considering the pandemic situation.

Earlier, after announcing that 70% of the money allocated from government fund for ADP can be spent, the Finance Division asked the ministries in July to prepare lists categorising projects with high, medium and low priorities. The government was supposed to save more than Tk40,000 crore in this way.

Officials at the Finance Division said after listing the projects according to their priorities, some ministers and members of parliament had been sending letters to the finance ministry for upgrading some projects from low to high priority. Many project directors seeking permission to spend money for their projects have also been contacting the ministry.

Considering such developments, the Finance Division has allowed the ministries and agencies to spend 75% of the fund allocated by the government for ADP. However, the remaining 25% cannot be spent for operation under any circumstances.

A circular signed by Additional Secretary of Finance Division Nazma Mobarek on Wednesday said the projects receiving foreign funding can fully spend those funds.

The Ministry of Health and Family Welfare, and Ministry of Agriculture will be exempted from this direction.

Money allocated from the government fund for the current fiscal year's ADP was Tk1,35,000 crore, while the foreign aid was Tk70,000 crore.

The Finance Division said a revised budget needs to be prepared to ensure the highest utilisation of the limited resources by allocating money required for the projects with highest priority to counter the impact of the novel coronavirus.

The revised budget estimates must be adjustable within the expenditure limits of the original budget, and additional allocations cannot be demanded by ministries and agencies concerned, said the Finance Division.

The Finance Division said purchasing vehicles is suspended till 30 June, 2021, so, money allocated for this purpose cannot be transferred to other sectors. The suspended 50% allocation for the government travel expenses and the other unspent money in this sector cannot be spent in other sectors.

Besides, no agency can propose an allocation of money for unapproved schemes.

The Finance Division also said projects with faster implementation rates need to be provided with money by curtailing funding for slower projects.

In addition to that, agricultural, agriculture-based industries, power generation, post-flood rehabilitation, cyclone and tidal wave projects have to be prioritised.