The government is planning big for next year’s annual development plan to keep the momentum gorwth on track. The planning ministry set to fix the size of the development budget at Tk 202,721 crore for 2019-20, which is 21.39 percent higher from the current fiscal year. The draft plan is set to place at the National Economic Council (NEC) meeting for its final approval.
Along with the traditional sectors, the new draft ADP has given special emphasis on human resource development, power, infrastructure, education, and Public Private Partnership (PPP) initiatives.
Allocation of ADP
Transport sector is going to get the largest chunk of the budget considering the ongoing mega projects, Padma bridge and Padma rail link. Allocation for the transport sector is proposed at BDT 52,805 crore, which is 26.05 percent of the proposed ADP.
The second highest allocation of Tk 26,017 crore has been made for the power sector, which is 12.83 percent of the proposed ADP.
Among other sectors, physical planning, water supply and housing will get Tk 24,324 crore; education and religion Tk 21,379 crore; science, information and communication technology Tk 17,541 crore; rural development Tk 15,157 crore; health Tk 13,055 crore; agriculture Tk 7,616 crore; water resources Tk 5,652 crore; and public administration Tk 5,023 crore.
Source of Fund:
Foreign aid is going to play even bigger role next year as the commitment of the find is piling up from the development partners. In the next fiscal year, foreign aid has been fixed at Tk 71,800 crore, which is 40.78 percent higher than the current year’s. As of November last year, the amount of foreign aid in the pipeline stood at $48.75 billion.
Government’s own fund allocation is still to be the major source but doesn’t show much promise comparing the last year. Fund from revenue has been set at Tk 130,921 crore, up only 12.86 percent year-on-year. Revenue collection isn’t gearing much, in the first eight months of the fiscal year, it grew 7.02 percent, according to data from the National Board of Revenue. A year earlier it had increased 14.13 percent.
Source:
The Financial Express, May 09, 2019
Image from Daily Star, used for representation purpose only.
