Govt may adopt 2nd PRSP this week
Sunday, 19 October 2008
FHM Humayan Kabir
The government is likely to adopt the second poverty reduction strategy papers (PRSP) for three years upto FY2011 this week estimating a Tk630.94 billion (US$9.01 billion) resources gap for its implementation, officials said Saturday.
National Economic Council (NEC), the highest economic policy-making body, may approve the draft PRSP in its next meeting on October 23.
The NEC in its last meeting on August 28 sent back the country's lone development document to make some changes against the backdrop of the present poor gas and power supply situation and soaring oil prices. It had asked the planning ministry to place it again in the next meeting.
"We've revised the strategy paper taking opinions of stakeholders again. Now, it will be placed before the next NEC meeting for approval," a planning ministry official told the FE.
He said: "It is estimated that a Tk3190.44 billion fund will be required to implement the PRSP during FY2009-FY2011. However, the government will be able to mobilise Tk2559.50 billion from the domestic resources."
Out of the domestic resources, Tk 2138.45 billion will come from revenue collection and Tk 421.05 billion from the domestic borrowing.
The report, however, has not said how the deficit financing will be managed for implementation of the PRSP.
"It is expected that the resources gap will be minimised through foreign borrowing," a senior planning ministry official said.
Research director of Bangladesh Institute of Development Studies (BIDS), Zaid Bakth said: "Resources gap, projected in the PRSP, is too high. How the government will mobilise the money will be a challenging job."
"I don't think that the government will be able to mobilise such huge $9.01 billion dollar from the foreign sources as the country last financial year received a record $2.1 billion," he said.
The draft PRSP envisages annual GDP growth at 6.5, 7.0 and 7.2 per cent in FY09, FY10 and FY11.
The government is likely to adopt the second poverty reduction strategy papers (PRSP) for three years upto FY2011 this week estimating a Tk630.94 billion (US$9.01 billion) resources gap for its implementation, officials said Saturday.
National Economic Council (NEC), the highest economic policy-making body, may approve the draft PRSP in its next meeting on October 23.
The NEC in its last meeting on August 28 sent back the country's lone development document to make some changes against the backdrop of the present poor gas and power supply situation and soaring oil prices. It had asked the planning ministry to place it again in the next meeting.
"We've revised the strategy paper taking opinions of stakeholders again. Now, it will be placed before the next NEC meeting for approval," a planning ministry official told the FE.
He said: "It is estimated that a Tk3190.44 billion fund will be required to implement the PRSP during FY2009-FY2011. However, the government will be able to mobilise Tk2559.50 billion from the domestic resources."
Out of the domestic resources, Tk 2138.45 billion will come from revenue collection and Tk 421.05 billion from the domestic borrowing.
The report, however, has not said how the deficit financing will be managed for implementation of the PRSP.
"It is expected that the resources gap will be minimised through foreign borrowing," a senior planning ministry official said.
Research director of Bangladesh Institute of Development Studies (BIDS), Zaid Bakth said: "Resources gap, projected in the PRSP, is too high. How the government will mobilise the money will be a challenging job."
"I don't think that the government will be able to mobilise such huge $9.01 billion dollar from the foreign sources as the country last financial year received a record $2.1 billion," he said.
The draft PRSP envisages annual GDP growth at 6.5, 7.0 and 7.2 per cent in FY09, FY10 and FY11.