Revised ADP: Block allocation for special needs up 283%

Block allocation for special needs in the proposed revised Annual Development Programme for the current fiscal year has increased to a record high of 283% against the original ADP allocation.

The revised ADP has proposed a block allocation of Tk17,984 crore for special development assistance, according to Planning Commission sources. In the initial ADP, the allocation was Tk4,697 crore.

In FY23, block allocation for special needs was Tk1,159 crore, which was increased to Tk3,768 crore in the revised ADP. With this, the revised block allocation for special needs this fiscal year has jumped 377% compared to the previous fiscal.

The revised ADP for the current fiscal year was initially approved at an extended meeting of the commission on 25 February, chaired by Planning Minister Major General Abdus Salam.  

The proposal is likely to get final approval at the meeting of the National Economic Council on 5 March.

A senior official of the commission said the reason for the massive increase in block allocation is due to demand from ministries and divisions.

He added that each fiscal year the demand from government funds is usually more than the demand from foreign aid. "This time due to the economic situation, the dollar crisis, the overall high cost of construction and the slow pace of project implementation, ministries and divisions have reduced the demand for government funds.

Block allocations are reserved funds set aside to address urgent needs in addition to the budgetary allocations. Prior consultation with the Finance Division is mandatory for any expenditure from the block allocation designated for "special needs" of the Planning Commission.

According to the report presented at the planning commission meeting, the revised ADP for the current fiscal stands at Tk2.45 lakh crore. This marks a 6.84% decrease from the original ADP of Tk2.63 lakh crore. 

The allocation of goverent funds has been decreased by Tk7,500 crore or 4.44% and allocation of foreign aid decreased by Tk10,500 crore or 11.17% in the revised ADP. 

The size of the revised ADP in FY23 was Tk2.28 lakh crore. 

Sectors, ministries with most allocation

In the revised ADP, the highest allocation of 25.82% is for transport and communication, followed by 15.47% for power and energy, 11.43% for housing and community, 8.15% for local government, and 7.03% for education. 

Additionally, 5.83% is allocated for environment and water resources, 4.93% for health, 4.21% for agriculture, 1.89% for industry and economic services, and 1.48% for science and technology. 

These 10 sectors collectively account for 86.24% of the total RADP allocation.

Meanwhile, the Ministry of Local Government, Rural Development and Co-operatives leads in RADP allocations with 16.29% of the total, amounting to Tk 39,904 crore. 

Other notable allocations go to the Road Transport and Highways Division, Power Division, Ministry of Railways, Ministry of Water Resources, Ministry of Science and Technology, Ministry of Primary and Mass Education, Bridges Division, and Ministry of Shipping.

These top 10 ministries and divisions collectively received 66.48% of the total RADP allocation.
 
Projects with top allocation

The Rooppur Nuclear Power Project leads with an allocation of Tk9,707 crore in the current RADP, unchanged from the original ADP. 

The second-highest allocation, Tk8,947 crore, also remains unchanged for the Matarbari coal-fired power plant. 

Other projects include the Fourth Primary Education Development Programme, Padma Rail Link, Dhaka Ashulia Elevated Expressway, Elenga-Hatikumrul-Rangpur Highway, and Jamuna rail bridge. 

The Padma Bridge project received a significant increase, with RADP proposing Tk2,612 crore. 

Health, edu not getting enough as per FYP

In the 8th Five Year Plan (FYP), the health sector was meant to receive 11.10% of the total RADP this fiscal year. However, it's only been allocated 4.93%. 

Similarly, for education and science and information technology, the plan aimed for 16.5%, but only 8.51% was allocated. Social security was projected at 3.5%, but it's been proposed at just 1.13%. 

Local government and rural development, targeted at 12.10%, received only 8.15%. Agriculture was set for 11.5%, but got only 4.21% in the RADP.