Government sets target to mobilise Tk 207.77 b foreign assistance
Friday, 11 June 2010
FE Report
The government has set a target to mobilise Tk 207.77 billion foreign assistance, 15.71 per cent of the total Tk 1321.70 billion national budget, from foreign donors in the next fiscal to finance the budget expenditures.
The expected overseas loans and grants is Tk 25.43 billion higher than the revised budget and Tk 24.32 billion more than the original budget of the outgoing FY2010.
In the original budget of the outgoing fiscal 2009-10, the government set a target of Tk 182.34 billion as foreign assistance (including grant and loans) which was 16.12 per cent of the total Tk 1138.19 billion budget outlay.
Out of Tk 207.77 billion foreign aid expected in the next fiscal, Tk 159.68 billion will be borrowed from different bilateral and multilateral donors while Tk48.09 billion will come as grant.
Finance minister AMA Muhith Thursday unveiled Tk 1321.70 billion expansionary national budget in the Jatiya Sangsad for the next financial year 2010-11.
Out of the projected Tk 207.77 billion foreign assistance, Tk 188 billion will be spent for implementing Annual Development Programme (ADP) and the remaining Tk 19.77 billion for other development works.
The government will mobilise Tk 152.90 billion as project aid, Tk 2.49 billion as food aid, Tk 35.00 billion as special support/credit for development, and Tk 1.50 billion as structural adjustment.
As most of the foreign resources will be spent for implementing the development schemes under the ADP, the finance minister underlined the need for improving the project implementation capacity of the project implementing agencies in the government.
"I mentioned in the last budget that the rate of implementation of ADP has not been encouraging. Though planning and budgeting has been decentralized under the MTBF, it has not been very effective," AMA Muhith said.
"Keeping that in mind, I have already mentioned that strengthening of budget and planning wings in line ministries/divisions will receive highest priority. Seventy-seven per cent of ADP is being implemented by only 10 ministries. I am convinced that the rate of utilisation could be higher had there been stronger monitoring," said the minister in the parliament.
AMA Muhith said the foreign assistance will also help to reduce the deficit in the proposed national budget for fiscal 2010-11.
The minister projected 5.0 per cent budget deficit in terms of GDP size. To offset the resources gap Tk 156.43 billion, 2.0 per cent of GDP, will come from external sources and Tk 236.80 billion, 3.0 per cent of GDP, from domestic sources.
The government has set a target to mobilise Tk 207.77 billion foreign assistance, 15.71 per cent of the total Tk 1321.70 billion national budget, from foreign donors in the next fiscal to finance the budget expenditures.
The expected overseas loans and grants is Tk 25.43 billion higher than the revised budget and Tk 24.32 billion more than the original budget of the outgoing FY2010.
In the original budget of the outgoing fiscal 2009-10, the government set a target of Tk 182.34 billion as foreign assistance (including grant and loans) which was 16.12 per cent of the total Tk 1138.19 billion budget outlay.
Out of Tk 207.77 billion foreign aid expected in the next fiscal, Tk 159.68 billion will be borrowed from different bilateral and multilateral donors while Tk48.09 billion will come as grant.
Finance minister AMA Muhith Thursday unveiled Tk 1321.70 billion expansionary national budget in the Jatiya Sangsad for the next financial year 2010-11.
Out of the projected Tk 207.77 billion foreign assistance, Tk 188 billion will be spent for implementing Annual Development Programme (ADP) and the remaining Tk 19.77 billion for other development works.
The government will mobilise Tk 152.90 billion as project aid, Tk 2.49 billion as food aid, Tk 35.00 billion as special support/credit for development, and Tk 1.50 billion as structural adjustment.
As most of the foreign resources will be spent for implementing the development schemes under the ADP, the finance minister underlined the need for improving the project implementation capacity of the project implementing agencies in the government.
"I mentioned in the last budget that the rate of implementation of ADP has not been encouraging. Though planning and budgeting has been decentralized under the MTBF, it has not been very effective," AMA Muhith said.
"Keeping that in mind, I have already mentioned that strengthening of budget and planning wings in line ministries/divisions will receive highest priority. Seventy-seven per cent of ADP is being implemented by only 10 ministries. I am convinced that the rate of utilisation could be higher had there been stronger monitoring," said the minister in the parliament.
AMA Muhith said the foreign assistance will also help to reduce the deficit in the proposed national budget for fiscal 2010-11.
The minister projected 5.0 per cent budget deficit in terms of GDP size. To offset the resources gap Tk 156.43 billion, 2.0 per cent of GDP, will come from external sources and Tk 236.80 billion, 3.0 per cent of GDP, from domestic sources.