Slow project execution has prompted the Railway Ministry to cut its development budget by nearly Tk 9.25 billion for the upcoming revised budget of the current financial year (FY) 2014-15, officials said Thursday.
The ministry has already sent a proposal to the Planning Commission (PC) to revise downward its outlay in the upcoming revised Annual Development Programme (ADP).
In the current development budget, the government allocated Tk 45.26 billion fund for implementing 41 development projects.
Out of the Tk 45.26 billion allocation, Tk 25.57 billion will come from the government exchequer and the rest Tk 19.69 billion from project aid to be mobilised form the external resources.
"The ministry will require Tk 36 billion in the revised ADP which will be finalised soon. The proposed allocation is Tk 9.26 billion lower than that of the original allocation of Tk 45 billion in the ADP," said a Railway Ministry official.
Out of the Tk 36 billion proposed outlay, the Railway Ministry has sought Tk 25.56 billion funds from the government exchequer and Tk 10.44 billion from project aid.
The government over the last five to six years had enhanced public investment for the railway sector development as the ailing infrastructure and services of the state-owned Bangladesh Railway (BR) hampered easy transportation of goods and passengers.
A PC official said the Railway Ministry, fifth largest development budget holder under the current ADP, was able to spend only Tk 6.09 billion or 14 per cent in the first half (July-December) of the current FY2015 out of its total Tk 4315.86 billion outlay in the ADP.
"We will now scrutinise reasons for the lower fund requirement of the Railway Ministry. If we find satisfactory reasons then we will cut their original allocations in the revised ADP," he said.
The PC has started work to revise the ADP of the current financial year 2014-15 which is likely to be finalised next month. The Tk 803.15 billion ADP outlay is likely to be slashed due to lower spending by the government agencies, officials said.
Bangladesh Railway has undertaken some large projects to upgrade its services for the passengers across the country.
Among the projects, the state-owned railway service provider has undertaken 13 projects with the support of US$800 million Indian line of credit (LoC).
The projects are considered very vital ones for facilitating cross-border transportation of goods between Bangladesh and India.
He said railway needs to modernise its services procuring new locomotives, carriages and other supporting equipment for strengthening its base.
Bangladesh's railway sector has failed to improve its services to the desired level despite record highest Tk 149 billion worth of investments by the government in the last five years, insiders said.
Despite the huge public investment, the state-owned railway service provider has neither improved its rolling stock nor ensured on-time departures of the trains.
The fund spent in the last five years of the previous government was higher than the total investment made in the previous one decade for the state-owned railway development, he said requesting for anonymity as he was not authorised to speak to the media.
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