FY23 ADP outlay drafted at Tk2.46 lakh crore

The government has proposed a Tk2.46 lakh crore Annual Development Programme (ADP) outlay for the upcoming financial year (FY) 2022-23.

Of the total allocation, around Tk 1.53 lakh crore (62.21 per cent) will be provided from the national treasury and Tk 93,000 crore (37.79 per cent) from project assistance.

The Finance Division has sent the draft to the Planning Commission for review, a senior official at the Planning Ministry told The Business Post. The proposed ADP will be tabled at a meeting of the National Economic Council (NEC) for final approval. The meeting will be held early next month, added the official.

According to the proposal, 62 ministries and divisions, including transport, power, energy, education, and rural development sectors, requested more allocation than they were given, resulting in a larger budget for the upcoming ADP.

In the current FY 2021-22, the government had planned to spend Tk 2.25 lakh crore for development works but later trimmed the budget by 7.87% to Tk 2.07 lakh crore – which is still 5 per cent bigger than last year’s revised annual development programme (RADP).

In the current fiscal’s ADP, the government funds Tk1.37 lakh crore on its own, while the remaining Tk 88,024 crore or 39% is supposed to come from foreign development partners.

For the next fiscal, foreign partner aid has been cut to 37.77%. External sources are expected to provide Tk 93,000 crore in the next fiscal.

Meanwhile, the government implemented 45.56 per cent of the project works under the RADP from July to March of the current fiscal year, the Implementation Monitoring and Evaluation Division (IMED) data showed.

Amid a dreary project implementation performance by different ministries, the government cut the project aid (foreign aid) budget by 20 per cent in the RADP for the current FY.

The government intends to pursue an expansionary spending policy in the coming years in order to mitigate the losses suffered in recent years as a result of the pandemic’s impact on development projects.