JAHIDUL ISLAM
The Ministry of Local Government, Rural Development and Co-operatives (LGRD) has sought an additional Tk 9.0 billion for the current fiscal year (FY 2025-26) to meet urgent development needs across local government institutions, from Union Parishads to city corporations.
While the move aims to support the government's short-term reform agenda and expand citizen services, it has raised concerns within the Planning Commission over transparency, oversight and the effective use of funds.
LGRD Minister Mirza Fakhrul Islam Alamgir recently sent a demi-official (DO) letter to Amir Khasru Mahmud Chowdhury, seeking a total of Tk 40.0 billion as development assistance for local government institutions - 29.03 per cent higher than the allocation in the Revised Annual Development Programme (RADP).
Officials concerned said the letter, seeking funds from the "Assistance in Special Needs" window of the Programming Division under the Planning Commission, reached the division chief through the planning secretary from the office of the planning minister.
The letter stated that the additional funds are required to implement the new government's 180-day programme announced under the prime minister's directives, as well as to support the election manifesto and the Sustainable Development Goals (SDGs), particularly to expand citizen services.
However, several officials at the Planning Commission expressed reservations about providing additional allocations under these heads, noting that development assistance for local government institutions often lacks transparency, as local bodies tend to implement small schemes of their own choosing outside specific projects.
They also observed that, in the absence of oversight by the Planning Commission, the Implementation Monitoring and Evaluation Division (IMED) or other monitoring agencies, a significant portion of the allocation may be prone to misuse or inefficiency.
"I have no clear idea about the actual need for funds under this head," said an official of the Programming Division, adding that a high-level meeting at the Planning Commission last week discussed the possibility of diverting funds from this allocation to implement the Family Card programme.
However, SM Shakil Akhter, Planning Division secretary, said additional allocations have become necessary due to what he described as the short-sightedness of the interim government and widespread corruption and wastage in some institutions.
He noted that several local government bodies have already exhausted their full-year allocations
within just seven months, leaving their funds nearly depleted.
"Several administrators appointed by the new government found upon taking charge that there were no funds left to continue operations," he said, adding that additional allocations would be required to sustain service delivery.
Mirza Fakhrul proposed the highest increase, 47.62 per cent, for city corporations, raising their allocation to Tk 6.20 billion from the revised Tk 4.20 billion.
At the upazila level, an additional Tk 2.50 billion has been sought, increasing the allocation from Tk 6.00 billion to Tk 8.50 billion, reflecting a 41.67 per cent rise.
District councils have also proposed a Tk 2.50 billion increase, raising their allocation from Tk 6.00 billion to Tk 8.50 billion.
Union Parishads, the lowest tier of local government, would receive an additional Tk 1.0 billion, increasing their allocation from Tk 8.80 billion to Tk 9.80 billion -- an 11.36 per cent rise, the lowest among all tiers.
Municipal bodies are seeking Tk 1.0 billion in additional funds, raising their allocation from Tk 6.00 billion to Tk 7.00 billion, a 16.67 per cent increase.
The letter noted that local government institutions serve as the principal vehicle for implementing development activities at the grassroots level, and play a critical role in achieving the government's Election Manifesto 2026 targets as well as the SDGs.
It emphasised that additional financial support has become necessary to implement the 180-day programme and to expand citizen service delivery across the country.
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