Public expenditure on agri, water resources rising
Shakhawat Hossain | Friday, 6 June 2008
Public expenditure on agriculture, water resources, rural development is rising, but investment in industry, energy and infrastructure is declining, said a finance ministry study.
Annual expenditure on agriculture, water resource and rural development in the last three fiscals, including the outgoing one, was 24.89 per cent on average compared to 16.58 per cent during FY05-FY03.
This was found in a finance ministry study on Inter-temporal Movement of Sectoral Priority of Annual Development Programme (ADP) Expenditure (FY 1990-91 to FY 2007-08) released Wednesday.
According to the study, industry, energy and infrastructure witnessed a 24.61 per cent public investment on average between FY03 and FY05.
The rate of investment in the sectors declined to 17.24 per cent on average over the next three fiscal years, including the outgoing one, said the study.
"The study reflects the policy shift in investment pattern," said a senior ministry official.
The government is focusing more on rural empowerment and employment generation projects than industry, transport, power projects. It has been spending 25 to 35 per cent of annual budget of ADP in the last six years.
It is trying to play the role of a facilitator to encourage private investor -- local and foreign -- for investment in the country's industry, transport, power sectors, said the official.
The finance ministry has prepared the study on the basis of Bangladesh Economic Review and Progress Review for ADB by IMED. The data it used from 1990/91 to 2006/07 are based on actual expenditure of ADP and data for 2007/08 are based on revised ADP.
The study reveals that expenditure on education, religion, health and population and others sectors has remained almost static.
The study, analysing the expenditure on individual sectors, suggests that average public investment in agricultural sector was 5.68 per cent in the last three years compared with 3.80 per cent in FY03-FY05.
The country's rural development witnessed a big jump in investment in FY06-FY08 compared with the previous three years. The average 12.83 per cent ADP investment between FY 03 and FY 05 advanced to 18.54 per cent in FY06-FY08.
The fall in ADP spending on industry is remarkable as public investment in the sector dropped at 1.35 per cent during the last three fiscal years from 2.1 per cent between FY03 and FY05.
Energy sector too witnessed a significant fall in public investment as ADP expenditure on the sector dropped at 14.48 per cent in the last three fiscal from 17.23 per cent between FY03 and FY05.
Public investment for development of oil, gas and natural resources declined by more than 3.0 percentage points. The average ADP investment was 5.07 per cent between FY03 and FY05, but it dropped at 1.45 per cent in the last three fiscal.
Like in industry, power and energy the public investment in transport, shipping, road and highway and road infrastructure also declined.
Annual expenditure on agriculture, water resource and rural development in the last three fiscals, including the outgoing one, was 24.89 per cent on average compared to 16.58 per cent during FY05-FY03.
This was found in a finance ministry study on Inter-temporal Movement of Sectoral Priority of Annual Development Programme (ADP) Expenditure (FY 1990-91 to FY 2007-08) released Wednesday.
According to the study, industry, energy and infrastructure witnessed a 24.61 per cent public investment on average between FY03 and FY05.
The rate of investment in the sectors declined to 17.24 per cent on average over the next three fiscal years, including the outgoing one, said the study.
"The study reflects the policy shift in investment pattern," said a senior ministry official.
The government is focusing more on rural empowerment and employment generation projects than industry, transport, power projects. It has been spending 25 to 35 per cent of annual budget of ADP in the last six years.
It is trying to play the role of a facilitator to encourage private investor -- local and foreign -- for investment in the country's industry, transport, power sectors, said the official.
The finance ministry has prepared the study on the basis of Bangladesh Economic Review and Progress Review for ADB by IMED. The data it used from 1990/91 to 2006/07 are based on actual expenditure of ADP and data for 2007/08 are based on revised ADP.
The study reveals that expenditure on education, religion, health and population and others sectors has remained almost static.
The study, analysing the expenditure on individual sectors, suggests that average public investment in agricultural sector was 5.68 per cent in the last three years compared with 3.80 per cent in FY03-FY05.
The country's rural development witnessed a big jump in investment in FY06-FY08 compared with the previous three years. The average 12.83 per cent ADP investment between FY 03 and FY 05 advanced to 18.54 per cent in FY06-FY08.
The fall in ADP spending on industry is remarkable as public investment in the sector dropped at 1.35 per cent during the last three fiscal years from 2.1 per cent between FY03 and FY05.
Energy sector too witnessed a significant fall in public investment as ADP expenditure on the sector dropped at 14.48 per cent in the last three fiscal from 17.23 per cent between FY03 and FY05.
Public investment for development of oil, gas and natural resources declined by more than 3.0 percentage points. The average ADP investment was 5.07 per cent between FY03 and FY05, but it dropped at 1.45 per cent in the last three fiscal.
Like in industry, power and energy the public investment in transport, shipping, road and highway and road infrastructure also declined.