Home ›› 12 May 2020 ›› World Biz
The government has decided to increase more 27 percent of the allocation in health and agriculture sectors of the country in the next fiscal year (2020-21) budget compared to revised allocation to address the damage caused by deadly coronavirus pandemic.
Combined with these two sectors, the revised Annual Development Program (ADP) of the current financial year is being increased by about Tk 4,667 crore.
Moreover, the agricultural sector has not been affected due to spread of deadly coronavirus when the industrial and service sectors have come to a standstill. Country’s food security is not at risk as Boro yields are good.
Experts said the health and the agricultural sector are also getting special importance because of the pandemic situation.
The Finance division has given this additional allocation under the new ADP.
An official of finance division, who does not want be mentioned said the four big projects will be taken with a huge allocation in the health sector but he did not elaborate those.
Health is now in crisis the moment however they do not spend actual amount of allocation due to their inefficiencies, he said.
Now the Planning Commission is working to determine the project-wise allocation. Planning Minister MA Mannan said, “The special attention is being paid to country’s health and agriculture in the next fiscal year.”
Corona Pandemic has put huge pressure on the health sector which needs more allocation.
In other words, new projects are being taken to deal with the pandemic. We do not know whether it will continue further, he said.
The processing of another project with a loan from the Asian Development Bank (ADB) is almost complete.
Boro bumper yields have ensured food security in the country. So whatever needs to take the agricultural sector forward will be done. As a result, this sector has also received a separate attention.
According to Planning Commission sources, the revised Annual Development Program (RADP) for this fiscal year has allocated Tk 10,106.49 crore in the health, nutrition, population and family welfare sectors. This fund is being spent for the implementation of 78 projects.
In the next year ADP, Tk 13,033 crore is being allocated for this sector. As a result, the allocation is raised by Tk 2,924.51 crore to 28.33 percent as compared to the revised ADP. However, the allocation is slightly lower than the original ADP. In the main ADP of the current financial year, Tk 13,055.46 crore was allocated against 62 projects in this sector.
Compared to that, the allocation is less than Tk 22.47crore .
Besides, in this fiscal year Planning Commission has allocated Tk 6,672.11 crore for the agriculture sector. This fund is being spent for the implementation of 183 projects. A total Tk 8,424 crore is being allocated for this sector in the ADP of the next fiscal year. As a result, the allocation is increasing by Tk 1,751.69 crore to 26.55 percent as compared to RADP.
The fresh allocation for the agricultural sector is even higher than the original ADP of the current financial year. The allocation for the original ADP was Tk 8,615.93 crore. As a result, it is increasing to Tk 808 crore.
Center for Policy Dialogue Research director Dr Fahmida Khatun said the government will give major emphasis on health sector where it has spent less than one percent of GDP.
People have spent 70 percent of their own money for health issues which is bad for any country, she said adding that more allocation will be needed for health sector.
Former research director of BIDs Dr Asaduzzaman said the government will allocate more for input of the agricultural production as result the cost of production will decrease, boding well for farmers.
Member of the General Economics Division of the Planning Commission (Senior Secretary) and the former president of the Association of Agricultural Economists Shamsul Alam welcomed the additional allocation in the two sectors.
He said in the coronavirus pandemic situation, the budget must give importance to the health and agriculture sectors.
“There is no alternative for the government as on the one hand, we have to save human life and on the other food security must be ensured for their survival”.
He said the decision to increase the allocation is right as coronavirus pandemic has affected all sectors barring the agricultural sector.
As a result, a big drop of GDP growth in this fiscal year will not happen in near future.
He said “I hope that the growth rate will be hovering between 5 and 6 percent”.”
Alam said, “The coronavirus has stopped the wheel of Bangladesh's economy.”
However, after overcoming this crisis, Bangladesh will soon return to normal with the hope that the work of preparing the budget for the new fiscal year is underway.
According to Finance Division, a draft budget of Tk 562,000 crore has been prepared for the fiscal year 2020-21.
Planning ministry is preparing outlay of ADP of Tk 205,145 crore has been allocated in the ADP for the fiscal year 2020-21.
