Public spending crucial to rejuvenate the private sector

It is quite natural that the private sector will have fewer activities at this time of the Covid-19 pandemic. A bigger public spending in the 2021-22 fiscal year remains crucial for economic consolidation, so that we can take advantage of this when the private sector investment will see a turnaround in the next one year or two.

This time, there are indications that efforts will be made to get more foreign resources.  We are to see how the mega projects will be implemented. 

Our concern is whether there will be a qualitative change in the project implementation.

If you look at the current fiscal year, you will see allocations have increased in those projects that have not been completed on time. 

The number of projects has also increased. We have seen that there were 556 such projects in the last financial year, and this time it is 622.

There are many projects that are expected to be completed in the next fiscal year. So we see a total of 1,063 projects are there. If you consider this, then it cannot be said that there will be a significant change in our situation.

The Ministry of Planning says 355 projects are nearing completion. And at the same time, more projects than before will be added. 

We have 14 mega projects. At least eight of them are expected to be completed in the next fiscal year.

But if we really look at their implementation status and the allocations made, we see that 100 percent allocation is not ensured for any of the projects.

There are three projects, which got allocations above 90 percent. The Padma Bridge is one of them. 

Now whether it will be completed this fiscal year is a matter of concern.

What I think is if such projects are completed in the next fiscal year, it will have a positive impact on our economy. That is why the government should take special initiatives and allocate the exact amount needed. 

Towfiqul Islam Khan, Senior Research Fellow, Centre for Policy Dialogue (CPD)