• Tuesday, Dec 18, 2018
  • Last Update : 01:19 am

Budget FY19: Tk1,73,000 crore allocated for Annual Development Program

  • Published at 02:51 pm June 7th, 2018
  • Last updated at 08:30 pm June 7th, 2018
gulistan-jatrabari-flyover-nashirul-islam-1528361367361.jpg
File photo of an under-construction Mayor Mohammad Hanif Flyover in Dhaka Nashirul Islam/Dhaka Tribune

The amount is 6.8% of next fiscal year’s projected GDP, which is Tk25,37,849 crore

Finance Minister AMA Muhith has proposed to allocate Tk173,000 crore for the government’s Annual Development Program (ADP) in the national budget for fiscal year 2018-19.

The minister tabled a Tk4,64,573 crore budget, which is 18.3% of the projected GDP, for the next fiscal year in parliament on Thursday.

The proposed ADP budget is 6.8% of next fiscal year’s projected GDP, which is Tk25,37,849 crore.

Muhith on Thursday said they had focused on regional parity, human resources development and infrastructure development as well as on assuring quality of expenditure while allocating resources for ADP.

“Of the total ADP allocation, I propose to allocate 26.9% for human resources development (education, health and others), 21.8% for overall agriculture (agriculture, rural development and rural institutions, water resources and others), 14.3% for power and energy, 26.3% for communication (roads, railways, bridges and others) and 10.8% for other sectors.”

The minister said: “The government spending in the first nine months of the current fiscal year is 45% of the revised target… In the first 10 months, 52.4% of ADP allocation has been spent.

“The utilization of project aid, for the first time, has increased significantly. In the first 10 months of FY2017-18, the utilization rate is 61.1% compared to 47.7% in same period of the previous fiscal year.”

“However, the overall budget deficit will stay within 5% of GDP.”

The total government expenditure in the current fiscal year was estimated at Tk4,00,266 crore. In the revised budget, the total expenditure was slashed to Tk3,71,495 crore, which was 16.6% of the GDP, by reducing Tk28,771 crore.

In FY2017-18, Tk1,64,084.83 crore was allocated for the ADP. The size later was revised downward to Tk1,48,381 crore, about 6.6% of the GDP, in several phases.

Muhith said: It is gratifying to note that the utilisation of increasing volume of foreign aid in the pipeline has spurred the implementation of the ADP significantly.”

Up to April this fiscal year, the utilisation was around 61.1% of the allocation as against 47.7% during the corresponding period of the last fiscal year.

If the ADP allocation of Tk7,869 crore for Autonomous Bodies is added to the total size of the proposed budget, its size will be Tk4,72,442 crore.

The allocation for non-development and other expenditures has been estimated at Tk2,91,573 crore and the development expenditure has been estimated at Tk1,73,000 crore.