Large block allocation in budget raises doubt about its proper use

FHM Humayan Kabir | Published: June 12, 2014 00:00:00 | Updated: November 30, 2025 06:01:00

An unusual rise in 'block allocation' in the proposed national budget has raised questions among experts and development analysts about the optimal use of the public investment.
Finance minister AMA Muhith in the budget for financial year (FY) 2014-15 has proposed a Tk 26.93 billion fund as the block allocation, a 285 per cent up from that of the outgoing FY2014.
Terming such allocation 'unusual', the development analysts said it has scope to utilise a portion of the fund in an improper way or on political consideration.
In the proposed budget, the government has allocated Tk 26.93 billion as the block fund, a Tk 19.93 billion up from that of Tk 7.0 billion in the outgoing FY2014.
Out of the sum, Tk 26.46 billion has been kept aside for the non-development expenditure and Tk 476.23 million for the development expenditure.
In the revised budget for FY2013, the government allocated Tk7.54 billion as the "block allocation" for the development and non-development expenditures.
Development analyst Dr Mirza Azizul Islam said there is scope of misuse of the block allocation in the budget as it hasn't any identified sector or programme for expenditure.
"The large sum of the block allocations in the budget is definitely a non-transparent expenditure which most of the time is spent on political consideration instead of the quality investment," he told the FE.
The block allocation which is a kind of dark money in the budget mostly comes from the tax money should have the transparency in its utilisation, Dr Islam said.
Researcher of the Bangladesh Institute of Development Studies (BIDS) Dr Zaid Bakht said this is an unusual allocation in the budget.
He said the government sometime keeps aside some "block allocations" for overcoming any impact of the natural calamities and emergency requirements of the country.
"But the large undetermined fund should not be allocated in the budget. Such fund creates scope for misuse or spending in an improper way," he told the FE.
Distinguished Fellow of the Centre for Policy Dialogue (CPD) Dr Debapriya Bhattacharya said this is an unusual rise for the budget in Bangladesh.
The block allocation always has a scope of misappropriation as it is not specified for any programme or projects, he said adding "the public tax money should be used transparently for ensuring the highest level of accountability and quality investment."
A finance ministry official said the government usually keeps aside some funds as 'block allocations' in the budget for utilising in an emergency need and bankrolling newly approved development projects in a particular financial year.