Planning Commission now against fund cut in RADP

The Planning Commission (PC) has taken a move against slashing funds from the Tk 658.72 billion outlay in the proposed revised Annual Development Programme (RADP) as key implementing ministries have sought to keep their funds as usual, officials said Thursday.
Last month, the PC had trimmed funds for all the ministries and drafted a Tk 540 billion RADP from the original Tk 658.72 billion ADP in the current fiscal 2013-14 as per directive of the Finance Ministry.
Planning Minister AHM Mustafa Kamal Thursday met the sector chiefs of the Commission at his office following protest of the ministries for cutting their funds for ongoing projects, said a PC official.
The Ministry of Finance (MoF) had suggested the Planning Commission to cut the total outlay to Tk 540 billion, Tk 118.72 billion or 18 per cent down from the Tk 658.72 billion original ADP allocation.
"The meeting has decided to draft a RADP allocating at least Tk 580 billion, raising by Tk 40 billion from the Tk 540 billion ceiling of the Finance Ministry for the proposed revised development budget," the official told the FE requesting anonymity.
The Commission may request the Prime Minister to allow more funds than that of the Finance Ministry's ceiling for the proposed RADP.
The huge fund gap between the demand of the ministries and divisions and the ceiling of the MoF has already delayed finalisation of the RADP.
"The ministries and agencies have not agreed to slash allocations from their funds for implementing the development projects in the RADP. So, we will request the government's top authority not to cut the ADP outlay," the official added.
The ministries including Communications, Railway, Energy and Power, Local Government Division, Health and Family Affairs, and Education had already expressed their reservation over cutting the allocations in the RADP, he added.
Communications Minister Obaidul Quader in late February had sent a letter to the Planning Minister requesting more funds for their ongoing projects, another PC official said.
Besides, many key ministries and project executing agencies were requesting us not to cut their funds, he added.
As per direction, the PC had drafted a Tk 540 billion worth of RADP more than two weeks ago which they could not finalise due to more fund requirements by the ministries and agencies.
The extended committee of the Planning Commission would sit next week and finalise the outlay of the RADP, the senior PC official said.
Then the proposed RADP would be placed before the National Economic Council (NEC) meeting, expected to be held within this March for getting approval, he added.
In the last fiscal 2012-13, the government had cut the development budget by 46.77 billion to Tk 503.66 billion for executing the projects revising the original Tk 550 billion ADP.