Size of block allocation rises by 31.67%

The government has proposed to increase the size of block allocation by 31.67% in the budget for Fiscal Year 2017-18 compared to the outgoing fiscal year. The proposed block allocation in the next fiscal budget is Tk4,327 crore while it is Tk3,286 crore in the current fiscal year, according to the latest budget document. An official in the Finance Division said the outlay of block allocation has been expanded to face possible natural calamity and disaster. “We have almost spent the whole amount of block allocation in the outgoing fiscal year 2016-17 although lawmakers are always very vocal in securing block allocations in their favour,” he said. The lawmakers prefer to use the fund for their own political purpose, added the source. As per the proposed budget, the Finance Division has  allocated Tk3,327 crore while the rest of the fund will come from the Planning Ministry. In the per-budget meeting with the heads of the parliamentary standing committees, Finance Minister AMA Muhith said the volume of block allocation in the next budget needs to be increased stressing the need for infrastructure development. “The allocation would go up manifold in the next budget as money would be spent on meeting the development needs at local levels and empowering the local government,” Muhith pointed out. He said there are many local needs the central government cannot look after instantly. The block allocations for meeting local needs will help achieve above 8% growth. “The block fund is meant for development of roads and culverts and other small infrastructures. It is a process of shifting funds for people’s development.” A former finance adviser to caretaker government AB Miza Azizul Islam told the Dhaka Tribune the practice of keeping aside an outlay of public fund under the head of block allocation in the national budget is not unique. This should be done mainly for meeting financial exigencies on the part of the government, although in this part of the world, the governments are found using the allocation for political purpose, he added. The national parliament usually approves the total block allocation, but how it will be used is not mentioned in the approval, said the former adviser. The parliament does not control that spending while transparency is also not ensured with regard to use of block allocation, he pointed out. A project has already been undertaken to allocate Tk20 crore for each lawmaker for rural infrastructure development in their respective constituencies.