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Dhaka Tribune

NEC okays 9% ADP cut for FY14

Update : 03 Apr 2014, 07:57 PM

The government yesterday slashed almost 9% the size of annual development programme (ADP) for this fiscal year, bringing an end to the disagreement between the finance and planning ministries over the ADP cut.

With Prime Minister Sheikh Hasina in the chair, the National Economic Council (NEC) approved the revised ADP of Tk60,000 crore, down from original allocation of Tk65,870 crore and up by 15% from the last fiscal year’s revised ADP of Tk52,000 crore.

ADP revision is a regular phenomenon in the country as the government evaluates the project implementation and revises the allocation when the fiscal year approaches towards its ending in June.

Earlier, the finance ministry asked the planning commission to make the revised ADP size within the limit of Tk55,000 crore, but the planning commission insisted to keep it within Tk60,582 crore.

In the last two months, the planning ministry and the finance ministry remained at loggerheads over demand for additional funds from the ministries and divisions.

“The planning commission placed Tk55,000 crore worth of revised ADP before the NEC meeting, but the Prime Minister asked the finance minister to allocate additional Tk5,000 crore due to higher demands by some ministries and divisions,” said Planning Minister AHM Mustafa Kamanl, after the meeting.

“Now the additional funds will be spent for the priority projects,” he said.

The NEC kept Tk2,100 crore for the Padma Bridge project, reducing from the original allocation of Tk6,852 crore.

“Since it is only three months from June, the last month of the current fiscal, we have given lower allocation for the Padma Bridge project. If the executing agency can spent more we will provide them with more fund in the next fiscal,” said Kamal.

About the disagreement between the finance and planning ministries, he said, it is a personal matter. “I do not talk about the issue as enough talks have already taken place. Now I want to be careful about uttering any ward.”  

Of the revised ADP, the government would provide Tk38,800 crore from its own resources while the rest Tk21,200 from the external resources.

The number of projects in the revised ADP is 1,254, rising from 1,052 in the original ADP. Another 304 projects with no allocation have been included in the revised ADP.

Three months ago, the planning commission started working on revising the ADP, cutting funds from the total allocations as many executing agencies have failed to implement their projects in time, said an official at the commission. 

The Planning Minister said: “The additional Tk5,000 crore from our drafted Tk55,000 crore will be spent on priority projects through consultation with the finance ministry. Then we will publish the final revised ADP of Tk60,000 crore.”

According to the new revised ADP, the transport sector has been given highest allocations followed by the power sector and the education sector respectively.

Earlier, the Planning Minister said his ministry did not support cutting funds from the original ADP if the agencies can utilise those in time. The different government agencies sought Tk6,583 crore in addition to the planning commission’s drafted revised allocations of Tk55,000 crore for the current fiscal.

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