Govt to focus more on local sources as foreign aid falls

The government's dependence on the internal resources for bankrolling the annual development programme (ADP) for the next fiscal year (FY) is likely to increase significantly due to less-than-expected foreign aid, officials said Tuesday.
The Planning Commission (PC) has framed a Tk 790.32 billion ADP for the upcoming 2014-15 financial year, proposing a record 65 per cent funds from the domestic resources.
In the current FY, the government's allocation from its internal resources is Tk 413.07 billion or 62.70 per cent at the original Tk 658.72 billion ADP. The allocation was Tk 335 billion or 60.90 per cent at the Tk 550 billion ADP in the previous FY.
 "The foreign resources are limited. However, the country needs a huge investment for improving its infrastructure and eradicate hunger. So, allocations from the domestic resources have been boosted," Member of General Economics Division (GED) of PC Prof Shamsul Alam told the FE.
Increasing the domestic resources in the ADP is good news for Bangladesh, as it has proved the country's capacity of bankrolling the development programmes from its own income, he added.
PC in its extended meeting Monday finalised a Tk 790.32 billion ADP for the next FY, allocating record high funds from the internal resources.  
The proposed outlay is 32 per cent higher than the Tk 600 billion allocation of the revised ADP and 20 per cent up from the Tk 658.72 billion outlay in the original ADP for the current FY 2014.
The newly-framed Tk 790.32 billion ADP is expected to be placed before the National Economic Council (NEC), scheduled to be held on May 20.
In the upcoming ADP, PC has proposed Tk 277 billion or 35 per cent outlay from the external resources as project aid.
In the original ADP for the current FY, the government allocated Tk 245.63 billion or 37.3 per cent from the external resources.
Among all the ongoing projects in the proposed ADP, the Padma Bridge as a single project has received the highest Tk 81 billion funds for starting its construction, the officials said.
They said PC has given Tk 180.98 billion funds for transport sector, which is the highest (22.90 per cent) among all the sectors out of the total outlay.
Education sector has got the second largest outlay of Tk 94.03 billion, 11.90 per cent of the total Tk 790.32 billion ADP for the next FY.
According to the proposed ADP, power sector has received the third highest Tk 92.78 billion, 11.70 per cent of the total outlay.
PC officials said the upcoming ADP could include nearly 1,200 approved projects with allocation of funds for implementation, while some 680 non-approved projects without funds.
 "As per the government instruction we have given the highest-ever allocations to transport sector for upgrading the country's infrastructure and ensure their maintenance in time," said a senior PC official.
Out of the Tk 180.98 billion outlay in the ADP for transport sector, communications ministry has got Tk 130 billion, and railway ministry received Tk 44.49 billion.