RHD seeks more fund, PC blushes

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FHM Humayan Kabir Repeated demands for funds by the Roads and Highways Department (RHD) amid resource constraints are causing the government discomfort as the former sought Tk 6.30 billion in extra funds last week for repair and upgrading works, officials said. The Planning Commission (PC) officials said the RHD has asked for additional funds for its 11 ongoing projects, which has put the Commission on the spot as the government is passing through severe resource constraints. "We feel helpless as the RHD has been seeking additional funds over the last few months to develop roads and repair the damaged ones in addition to their earmarked allocations," a senior PC official told the FE. He said, "We have already given extra funds to some road repair schemes and approved shifting of money from the less significant projects to very important schemes a month back." "Moreover, the road developer has again demanded more funds, which has baffled us amid the government's fund shortage," the official said requesting anonymity. The Road Division under the Ministry of Communications (MoC) has received funds worth Tk 22.73 billion, the fifth highest allocation among the government ministries and divisions, for implementing its 155 ongoing projects. Another PC official said a month back that they allowed the RHD to shift Tk 2.0 billion funds from the allocations in less important projects to the Dhaka-Chittagong 4-lane and emergency road repair schemes. The RHD has again requested the Commission to allocate Tk 6.30 billion in additional funds for 11 projects including the Dhaka-Chittagong four-lane one and the schemes for emergency rehabilitation of the damaged roads. "Besides, we have allocated Tk 500 million in extra funds for the ongoing Tk 14.10 billion's worth emergency road maintenance project considering the dilapidated condition of the roads in the country," the official said. A senior MoC official said the RHD needs money to repair the damaged roads across the country and road upgrading works including the Dhaka-Chittagong four-lane one. "It is imperative to allocate more funds in addition to the original allocation in the current year's development budget. Many roads in the country still remain almost unusable," he said. Another PC official said it is very difficult for the Commission to fulfil the demand for such a large fund from the state-owned road developer in the current year as the government has limited funds in the development budget. "It is mysterious that RHD cannot find out foreign resources for the road development works, rather they prefer utilising local resources. It has created immense pressure on the government's fiscal management," he said. The government has set aside only Tk 10.77 billion as block allocation for special development works in the current year's Tk 460 billion Annual Development Programme (ADP). "To whom will we distribute the tiny Tk 10.77 billion funds? It is very tough for us at this moment to mange the fiscal balance amid the repeated pressure from ministries for additional funds," the PC official said. Usually, block allocations are kept for bankrolling approved fresh projects and for the ongoing schemes which will require additional funds in a particular year. The state-owned road developer RHD has spent only Tk 3.65 billion in the July-October period this fiscal from its Tk 22.60 billion allocation in the ADP.