PC to place Tk 2.05tn ADP for next FY today
FE Report | Tuesday, 19 May 2020
The Planning Commission (PC) is set to place a Tk 2.05 trillion worth of Annual Development Programme (ADP) before the National Economic Council (NEC) today (Tuesday) for getting approval, officials said on Monday.
The PC at its meeting in Dhaka is likely to endorse the development budget for the upcoming fiscal year (FY) 2020-21, a senior PC official said.
NEC Chairman and Prime Minister Sheikh Hasina will preside over the meeting online from Gonobhaban.
Some 10-15 senior cabinet ministers, PC members and high officials will also attend the meeting.
According to the PC, it is going to propose some Tk 1.346 trillion fund from internal resources and the remaining Tk 705 billion from external resources as the project aid (PA) for the Tk 2.05 trillion upcoming ADP.
The transport sector is likely to receive the highest allocation, followed by physical infrastructure, water supply & housing, power, education & religion and science and ICT sectors respectively, they said.
The transport sector may get the highest allocation of Tk 521.83 billion in the upcoming ADP.
Then the physical infrastructure, water supply & housing sector is going to receive Tk 257.94 billion, power sector Tk 248.03 billion, education & religion sector Tk 233.89 billion, and science and ICT sector Tk 184.47 billion, the PC official said.
In the next development programme, some 1,588 projects are likely to be incorporated with fund allocations for the implementation.
For the first time after 11 years, the country is going to have the development budget outlay almost the similar size of the outgoing FY2020 as the COVID-19 pandemic has affected the economy severely.
Another PC official said: "They've completed all the preparations for placing the ADP before the NEC meeting on Tuesday for getting approval."
If the NEC approves, he said, the ADP would be included in the national budget for implementing in the next year.
The proposed Tk 2.05 trillion worth of ADP for the next fiscal is only 1.0 percentage points higher compared to that of the outgoing FY2020.
The size of the current FY2020 ADP is Tk 2.027 trillion. The allocation for the current year was 17 per cent higher than that of Tk 1.67 trillion outlay in the last FY2019.
The NEC early March this year trimmed down the ADP to Tk 1.93 trillion from its original size of Tk 2.027 trillion due to the poor implementation rate.
The government ministries and agencies implemented only 45 per cent of the total revised ADP in the last nine months (July-March) of the current FY2021.