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The government is expected to trim the development budget by 7.88 per cent to Tk 207,550 crore for the current fiscal year because of the sluggish pace of implementation by public agencies.
The revised outlay is 92 per cent of the total allocation of Tk 225,324 crore, the steepest cut in six years, data from the Implementation Monitoring and Evaluation Division (IMED) showed.
The use of foreign aid is likely to see a 20 per cent, or Tk 17,774 crore, reduction in the revised Annual Development Programme (ADP), while the allocation from the government’s coffer may be kept unchanged.
The government had planned to spend Tk 88,024 crore from external assistance. Now the amount could be reduced to Tk 70,250 crore at the meeting of the National Economic Council today.
In the original ADP, the government had contributed Tk 137,299 crore, while the revised allocation will put it at Tk 137,300 crore.
The health division, whose importance grew than ever because of the ongoing coronavirus pandemic, witnessed its allocation slash by Tk 3,509 crore to Tk 13,797 crore in the revised ADP.
The division managed to spend only 13.18 per cent of the fund in the July to January period of the current fiscal year, according to the IMED.
The budget for the power and energy division may decrease by Tk 6,653 crore to Tk 39,214 crore.
The education ministry’s development budget may stand at Tk 20,824 crore, down Tk 2,353 crore from the actual allocation of Tk 23,177 crore.
Every fiscal year, the government unveils a large ADP but the size trims towards the end of the year. Sometimes, the expenditure falls below the revised target.
For example, in FY2020-21, an ADP of Tk 205,144 crore was approved, but it was later reduced to Tk 197,643 crore.
The IMED said in a report that Tk 172,050 crore was spent in the year, while the finance ministry put the figure at Tk 155,428 crore.
(TDS)
