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NEC may clear Tk 2,46,000cr ADP for FY23

Mohammad Zakaria
16 May 2022 20:15:46 | Update: 16 May 2022 20:29:45
NEC may clear Tk 2,46,000cr ADP for FY23
Transport and energy sectors will get the highest allocations — BSS Photo

The government is likely to approve a Tk 2,46,000 crore Annual Development Programme (ADP) for the upcoming 2022-23 financial year, in which transport and energy sectors will get the highest allocations.

If green lighted, the National Economic Council (NEC) will clear the ADP during a meeting, with Prime Minister Sheikh Hasina in the chair, at its office on Tuesday.

Of the total allocation, Tk 1,53,000 crore (62.21 per cent) will be provided by the national treasury and Tk 93,000 crore (37.79 per cent) will come from project assistance, according to Planning Commission officials.

They said 62 ministries and divisions, including transport, power, energy, education, health and rural development, requested more allocation for the next fiscal, resulting in a larger budget for the next ADP.

Pradip Ranjan Chakraborty, a member of the Programming Division at the Planning Commission, said the commission has proposed sector-wise allocations in line with the demands of the ministries.

“Transport and communication will get the highest allocation and the second-highest allocation will go to the power and energy sector,” he said, before adding that education and health sector allocations have also been increased.

However, he said the allocations may get readjusted at Tuesday’s NEC meeting.

The proposed expenditure for transport and communication in the next ADP is Tk 70,695 crore and Tk 39,412.36 crore for the power and energy sector.

In the outgoing FY2021-22, the government had planned to spend Tk 2,25,000 crore for development works but later trimmed the budget by 7.87 per cent to Tk 2,07,000 crore — which is still 5 per cent bigger than last year’s revised ADP.

In FY22 ADP, the government had planned to spend Tk 1,37,000 crore from its coffer and secure the rest — Tk 88,024 crore or 39 per cent — from foreign development partners.

For the next ADP, the foreign partner aid target has been dropped to Tk 93,000 crore or 37.77 per cent.

Between July and March of FY22, the government implemented 45.56 per cent of the project works under the revised ADP, according to Implementation Monitoring and Evaluation Division data.

The government also had to cut the project aid (foreign aid) budget by 20 per cent in the revised ADP amid a dreary implementation performance by different ministries.

The government intends to pursue an expansionary spending policy for development projects in the coming years to mitigate the losses suffered in recent years due to the Covid-19 pandemic.

Finance Minister AHM Mustafa Kamal is set to table a Tk 6,77,864 crore budget for FY2022-23 in parliament on June 9, with a projected GDP size of Tk 44,12,849 crore.

According to the ministry, there will be a Tk 2,44,913 crore deficit in the next budget, which will be 5.5 per cent of the GDP (in line with the updated base year of 2015-16).

To meet the deficit, the government plans to get 58 per cent of that total from domestic sources and manage the rest 42 per cent — Tk 1,03,095 crore — from foreign aid, grants and loans.

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