Shutdown reins in development activities in April
Development spending in Bangladesh decelerated in April on the back of the countrywide shutdown enforced since March 26, with the federal government managing to use Tk 8,136 crore during the month, down 23 % from the previous month.
The government spent Tk 13,623 crore beneath the gross annual development programme (ADP) in April last year, according to data from the planning ministry.
In the first 10 months of the fiscal year, Tk 98,840 crore was expended from the development budget, which is 49.13 % of the full-year allocation, the cheapest in at least five years, according to data shared at a gathering at the look ministry yesterday.
Development activities hit the brakes at a time when it will gather pace each year as the fiscal year draws to a near show a flattering result.
However, the slowing trend of development spending will continue in to the new fiscal year as the federal government diverts funds to meet up the immediate must prop up the economy caving beneath the burden of the global pandemic.
Yesterday, Planning Minister MA Mannan chaired a gathering where in fact the ADP for fiscal 2020-21 was finalised.
The ADP for next fiscal year would be 6.33 per cent greater than this year's revised development budget at Tk 205,145 crore.
The implementation status of the development budget for the existing year was also presented at the meeting.
The meeting made a decision to give priority to medical and agriculture sectors, social back-up programmes and job creation initiatives in the next fiscal year.
The meeting made a decision to send a proposal to the prime minister to hold the next meeting of the National Economic Council (NEC) any day between May 18 and could 20 to get the approval for the ADP.
Due to social distancing now being observed, it isn't clear if the NEC, chaired by the prime minister, would meet, as could have been the case under normal circumstances, to approve the ADP.
The prime minister may approve the ADP through an executive order and thereafter it might be passed in parliament. Alternatively, the prime minister and some key ministers may sit and present the consent.
If the NEC meeting takes place in the existence of ministers, those linked to the priority sectors would only be presented, said an official of the planning ministry.
At least 2 per cent of GDP could be lost in this fiscal year which prompted the government to focus on priority projects, said a finance ministry official.
The federal government has unveiled a social protection and monetary stimulus package amounting to Tk 95,619 crore, or $11.3 billion, which is the same as 3.5 per cent of Bangladesh's GDP.
Of the funds, Tk 10,000 crore has already been disbursed. Some Tk 3,000 crore out of Tk 5,000 crore assigned to export-oriented industries has also been released, the official said.
Besides, Tk 1,250 crore has been released to supply cash support to 50 lakh families whose breadwinners have lost jobs as a result of the shutdown.
The meeting also finalised the allocation for the 10 mega projects for another fiscal year. Of the projects, seven are being implemented beneath the national budget and the others under their respective ministries.
Among the large projects, Metro Rail project are certain to get Tk 4,370 crore, Matarbari project Tk 3,670 crore, Rooppur nuclear power plant Tk 15,691 crore, Payra seaport Tk 350 crore and Padma Rail Link Tk 3,685 crore.
