Tk 347b project aid outlay for next fiscal

The government has prepared a project aid budget worth Tk345 billion for the upcoming Annual Development Programme (ADP) for the next fiscal 2015-16 with some 36 per cent higher fund than that of the current outlay, officials said Thursday.
In the current budget, it allocated Tk 253 billion funds in the revised Annual Development Programme (ADP) of the current financial year (FY) 2014-15.
The Economic Relations Division (ERD) recently drafted the project aid (PA) outlay which will come from external sources for implementing development projects in a bid to finalise the national budget preparation works of the ministry of finance.
"We consulted the government ministries and agencies on their requirements for implementing the projects in the next year ADP. Then we figured out the total outlay. Now it will be sent to the Planning Commission (PC) for preparing a final draft ADP," said a senior ERD official.
The Commission will incorporate the PA with outlay from the government's own resources in the upcoming ADP for the next financial year FY2016, he told the FE.
It has already been reported that the total ADP outlay comprising donor-supported project aid and funds from the government's own resources, in the upcoming national budget is likely to be Tk 915 billion.  
Project aid means allocation in the ADP coming from different bilateral and multilateral development partners for executing development project aimed at improving infrastructure and reducing poverty.
The World Bank (WB), the Asian Development Bank (ADP) and Japan are the major project aid providers for development works in Bangladesh.
The ministry of finance (MoF) and the PC are working to prepare the national budget for the upcoming FY2016 where the ADP will be its major part.
The ERD official said they had raised the allocation of the PA by 24 per cent to Tk 345 billion for the next development budget from Tk 277 billion outlay in the current year's original ADP outlay which is 36 per cent higher than that of the revised Tk 253 billion allocation.
In the original Tk 803.15 billion ADP for the current FY2015, the government allocated Tk 277 billion as project aid for different projects. Later, it was downsized to Tk 750 billion decreasing the project aid to Tk 253 billion.
Another ERD official said poor project execution performance of ministries and agencies have prompted them to cut foreign aid spending by nearly 36 per cent to Tk253 billion in the current ADP from Tk 277 billion original allocation.
During the first three quarters (July-March) of the current FY2015, the government agencies spent only 43 per cent of the current year's ADP allocation.
The MoF has started work to prepare the national budget for the next FY2016.
Finance minister AMA Muhith has already said that the total outlay for the next year's budget is likely to be Tk 3.0 trillion.
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