Dev budget cut amid sluggish project work

The government on Wednesday cut current development budget through slashing its foreign-aid part by 20 per cent as execution of projects remained on slow lane or postponed amid the global and local financial crunch.
However, the allocation from internal resources in the Annual Development Programme (ADP) for the fiscal year (FY) 2022-23 was kept unchanged.
With Prime Minister Sheikh Hasina in the chair, the National Economic Council (NEC) revised the ADP down to Tk2.27 trillion from its original size of Tk 2.46 trillion.
After the meeting was over, State Minister for Planning Dr Shamsul Alam told reporters that the revised ADP or RADP outlay stood at Tk2.27 trillion after cut in the foreign-aid allocation by Tk185 billion to Tk 745 billion from the current Tk930 billion.
Under the RADP, the government agencies got fund allocations for 1,627 projects in the current FY2023. Among the projects, some 343 are kept aside for completion within this fiscal year, said Planning Secretary Satyajit Karmakar.
The NEC Wednesday allocated the similar amount of Tk 1.93 trillion in the RADP as in the ADP while cut the project aid (foreign aid).
Also revised down are the allocations for autonomous and semi-autonomous government bodies to Tk 89.94 billion from the current allocation of Tk 99.37 billion in the ADP.
Earlier in May 2022, the NEC approved Tk 2.46 trillion ADP for the current FY2023 with Tk 930 billion estimated as project assistance from the external funds and the remaining Tk 1.53 trillion from internal resources.
The NEC also approved block allocations of Tk70.54 billion in the upcoming RADP which will be utilised for the newly approved projects as the 'special development fund'.
In the original Tk 2.46-trillion ADP, the government allocated Tk 43.69 billion as block allocations.
The transport and communications sector had attained the highest allocation of Tk618.10 billion, 27.16 per cent of the total Tk2.27 trillion RADP.
The power and energy sector got the second-highest Tk 383.17 billion, which is 16.84 per cent of the RADP, the housing and community services sector grabbed Tk 259.39 billion, 11.40 per cent in the RADP.
Currently, the transport and communications sector had an allocation of Tk706.95 billion while the power and energy sector of Tk 394.12 billion in the ADP. In the RADP, the education sector obtained Tk184.31 billion, 8.10 per of the RADP allocation, and the health sector Tk127.45 billion, 5.60 per cent of the newly approved RADP.
Asked about reasons for the weak foreign-aid use by the government agencies, Planning Secretary Satyajit Karmakar said the performance depends on two sides-from the implementing agencies and from the development partners. The development partners' complex terms and conditions for procurement and other issues affect project execution in many cases, holding back foreign-aid utilization, he added.
"This issue has been discussed at the NEC meeting. The Prime Minister asked the Principal Secretary to find ways of getting released US$50 billion unutilized foreign assistance in the pipeline," the planning secretary said.
State Minister for Planning Dr Shamsul Alma said the PM directed the authorities not to continue with the slow-moving projects and not to take up less-important projects at this moment rather to complete the priority ones.
She also directed the authorities to list out the unutilized buildings and infrastructures across the country which have been built with project funds but are not being utilized today, he added.
Meanwhile, the size of the original ADP in the last FY2022 was Tk 2.25 trillion, which was later downsized to Tk 2.07 trillion in the RADP.

kabirhumayan10@gmail.com