FE Report
The government approved Tk 600 billion Revised Annual Development Programme (RADP), slashing Tk 58.72 billion from the original Tk 658.72 billion outlay in the current fiscal finally setting at rest the prevailing row between the finance and planning ministries.
Presided over by Prime Minister Sheikh Hasina, the National Economic Council (NEC) gave Tk50 billion additional funds from the Planning Commission (PC)- drafted Tk 550 billion RADP as ministries and agencies have demanded higher allocations.
Earlier, the Finance Ministry asked the Planning Commission (PC) to frame the RADP within the fund limit of Tk 540 billion, Tk 118.72 billion down from the original Tk 658.72 billion outlay. It later increased the sum to Tk550 billion due to the higher demands from the PC.
The PC placed Thursday the Tk550 billion RADP before the NEC, where the Prime Minister asked the Finance Minister to allocate Tk 50 billion additional
funds following higher demands by ministries and divisions, said Planning Minister AHM Mustafa Kamanl after the NEC meeting Thursday.
"Earlier we drafted Tk 550 billion RADP. Now the additional Tk 50 billion funds will be allocated for 'priority development projects' based on their necessity," he told journalists at the NEC conference room in Dhaka.
The government would provide Tk388 billion, or 65 per cent of the total Tk 600 billion RADP outlay, from its own resources while the rest Tk 212 billion, or 35 per cent from the external resources.
The Tk 600 billion fund in the RADP has been allocated for 1,254 development projects in the current FY2013-14.
Of these, 1,052 projects have been included from the original ADP and the rest 202 projects are fresh ones, which were approved by the government within this fiscal.
Three months ago, the PC began works to revise the Tk 658.72 billion ADP cutting funds from the total allocation as many executing agencies failed to implement their projects in time, said a PC official.
Mr AHM Mustafa Kamal said: "We will now allocate the extra Tk50 billion funds to the priority projects in addition to their allocation in the Tk550 billion RADP in consultations with the Finance Ministry. Then we will publish the final RADP with Tk 600 billion outlay."
According to the new RADP, transport sector has been given highest allocation followed by the power sector, and the education and the religion sectors respectively.
Earlier, the planning minister said they did not support cutting of the funds from the Tk 658.72 billion ADP if the agencies could utilise those in time.
The agencies sought Tk 65.83 billion extra fund in addition to the PC's revised allocations at the Tk 550 billion RADP for the current fiscal 2013-14.
The rural development and rural institution sector has sought highest Tk 18.77 billion fund beyond its revised allocation of Tk 67.38 billion at the drafted RADP. Education and religion sectors sought Tk11.65 billion extra funds beyond their revised outlay of Tk 55.71 billion, and the transport sector an extra Tk 4.03 billion fund in addition to their revised allocation of Tk26.96 billion in the RADP.
Meanwhile, Mr Kamal, after the NEC meeting Thursday, said they had allocated Tk 21 billion fund for the Padma Bridge project cutting down the original Tk 68.52 billion outlay.
"Since it has only three months remaining for June, the last month of the current fiscal, we have given lower allocation for the Padma Bridge Project. If the executing agency can spend more, we will provide them higher funds in the next fiscal," Mr Kamal said.
In the last fiscal 2012-13, the government cut the development budget by Tk46.77 billion to Tk503.66 billion for executing the projects revising the original Tk 550 billion ADP.
Ministers, secretaries concerned and PC officials attended the NEC meeting Thursday.
