Development budget 2010-11
Tuesday, 29 June 2010
Md. Ashraf Hossain
Preparation of a budget and its effective implementation is vital for a country. A utopian budget does not help the nation. Nor does a pragmatic budget when it is implemented inefficiently. A few renowned economists assessed the development budget 2010-11 as 'not achievable' after observing the presentation in parliament by Finance Minister, AMA Muhith. They did not make any significant comment on the fiscal measures as well as on different allocations. They thought from their experience that the present administrative structure and procedure is not suitable for implementing such a large allocation in ADP.
The government field level development agencies that are entrusted with the responsibility of project implementation are not enjoying the necessary authority to render the responsibility assigned to them. For example, Rajuk, BPDB, BADC, Department of Roads and Highways and so on are the government's development project implementing agencies. Even after approval of a project by ECNEC and incorporation in ADP the agencies cannot take the decision to award a contract to a contractor or consultant when a project exceeds a certain amount of money. The limit is so small that almost all projects require approval of the cabinet purchase committee. This is very much time consuming, usually taking more than a year!
This could easily be overcome if the government simply forms the present project implementation procedure and delegates authority to the development agencies.
Once a project is approved by ECNEC and is incorporated in the Annual Development Plan the implementing agency should have the authority to prepare, invite and evaluate bids and take the decision to select or reject a consultant and contractor, as the case may be, on the basis of the bid terms. The agency should be able to receive bids, award contracts, sign contracts, execute contracts, make the necessary payments, impose penalty and so on. Most of the development agencies are competent enough to perform the mentioned jobs satisfactorily. This procedural change providing enough authority to the development agencies of the government would expedite project implementation tremendously.
Preparation of a budget and its effective implementation is vital for a country. A utopian budget does not help the nation. Nor does a pragmatic budget when it is implemented inefficiently. A few renowned economists assessed the development budget 2010-11 as 'not achievable' after observing the presentation in parliament by Finance Minister, AMA Muhith. They did not make any significant comment on the fiscal measures as well as on different allocations. They thought from their experience that the present administrative structure and procedure is not suitable for implementing such a large allocation in ADP.
The government field level development agencies that are entrusted with the responsibility of project implementation are not enjoying the necessary authority to render the responsibility assigned to them. For example, Rajuk, BPDB, BADC, Department of Roads and Highways and so on are the government's development project implementing agencies. Even after approval of a project by ECNEC and incorporation in ADP the agencies cannot take the decision to award a contract to a contractor or consultant when a project exceeds a certain amount of money. The limit is so small that almost all projects require approval of the cabinet purchase committee. This is very much time consuming, usually taking more than a year!
This could easily be overcome if the government simply forms the present project implementation procedure and delegates authority to the development agencies.
Once a project is approved by ECNEC and is incorporated in the Annual Development Plan the implementing agency should have the authority to prepare, invite and evaluate bids and take the decision to select or reject a consultant and contractor, as the case may be, on the basis of the bid terms. The agency should be able to receive bids, award contracts, sign contracts, execute contracts, make the necessary payments, impose penalty and so on. Most of the development agencies are competent enough to perform the mentioned jobs satisfactorily. This procedural change providing enough authority to the development agencies of the government would expedite project implementation tremendously.