ADP spending may expand by 14pc

ADP spending may expand by 14pc
The government may allocate Tk 225,324 crore to implement development projects within the next fiscal year, which is 14 per cent higher than that in the revised budget.

The best 27.39 % of the allocation beneath the gross annual development programme (ADP) has been proposed for the transport and communication sector.

The health sector, which is in the forefront of the coronavirus pandemic and has not been in good shape, was presented with the fifth-highest allocation, or 7.68 per cent of the ADP.

The size of the development budget was finalised at a planning ministry meeting chaired by Planning Minister MA Mannan yesterday. A written report will be located at a gathering of the National Economic Council on May 18 for approval.

The size of the initial ADP was Tk 205,144 crore in the current fiscal year. The planning ministry proposed to slash it to Tk 1,97,643 crore in the revised budget as the pandemic has hamstrung the government's expenditure ability.

In the proposed ADP for the fiscal year of 2021-22, how big is foreign aid will be Tk 88,024 crore, up 39.72 % from the revised allocation of Tk 63,000 crore.

The government portion in the development programme will be Tk 137,299 crore, which is 1.97 per cent higher than in the current fiscal year.

Among the very best sectors when it comes to allocation, the transport and communication sector may get Tk 61,721 crore, accompanied by the energy and energy sector (Tk 45,867 crore, or 20.36 % of ADP), the housing and community services sector (Tk 23,747 crore, or 10.54 % of the ADP), the training sector (Tk 23,177 crore, or 10.29 % of the ADP), and medical sector Tk 17,306 crore.

In its budget proposal last month, the Centre for Policy Dialogue said the national cover FY2022 should take a two-pronged approach: faster implementation of the ADP projects by maintaining quality and standards; and enhancing the ability to spend more to implement essential projects. The budget allocation for health services division ought to be increased, it said.

Out of Tk 17,306 crore proposed for medical sector, medical services division may get about Tk 13,125.19 crore. The rest will head to other ministries and divisions that implement health-related development projects.

In line with the finance ministry, medical sector is unable to utilise the ADP allocation properly.

The trend has continued in today's fiscal year aswell, although the united states has been facing the coronavirus pandemic for greater than a year and needs to upgrade its healthcare system urgently. 

Medical services division were able to spend only 21 % of the allocation from the ADP in the nine months to March, data from the Implementation, Monitoring and Evaluation Division of the planning ministry showed.

The division expended 10.31 per cent of the allocated project aid worth Tk 6,447.78 crore during the period.

The federal government allocated Tk 5,531.56 crore from its coffer to the division to implement various projects. It spent Tk 1,850 crore, which is 33.45 per cent of the allocation and one of the lowest among the ministries and divisions.

The local government and rural development sector may get Tk 14,274 crore in FY22 to execute development projects, the surroundings, climate change and water resources sector Tk 8,526 crore, the agriculture sector Tk 7,665 crore, the industry and monetary service sector Tk 4,637 crore, and the science and it sector Tk 3,586 crore.

The federal government has proposed to set aside Tk 11,468 crore for the development projects of the state-owned enterprises. Of the sum, Tk 6,717 crore will be utilized from the fund of the agencies and the others will come as project aid.
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