The development budget for the current fiscal 2023-24 is facing a reduction of Tk18,000 crore despite an increase in the number of projects.

The revised Annual Development Programme (ADP) is slated to be presented today during the National Economic Council (NEC) meeting, chaired by Prime Minister and NEC Chairperson Sheikh Hasina, at the NEC conference room in the capital’s Sher-e-Bangla Nagar.

This reduction reflects a recurring trend, with the government’s development budget shrinking from its initial allocation of Tk2,63,000 crore for the current financial year to a revised size of Tk2,45,000 crore, due to project delays hindering timely implementation.

A similar scenario occurred last fiscal year, with a reduction of Tk18,500 crore in the revised ADP.

Sources from the Planning Commission reveal that the revised ADP for FY24 will see a reduction in government fund by Tk7,500 crore, decreasing from Tk1,69,000 crore to Tk1,61,500 crore.

Additionally, foreign aid allocation will decrease by Tk10,500 crore, amounting to Tk83,500 crore in the revised ADP.

The number of projects in the ADP is set to increase from 1,392 to 1,588 in the revised version.

Despite economists advocating for increased implementation of foreign aid projects to address the dollar crisis, the revised ADP depicts a reduction in foreign financing.

Dr Zahid Hussain, the former lead economist at the World Bank’s Dhaka office, told the Daily Sun the government has traditional spending practices, underscoring the need to shun the trend amidst the current fiscal challenges.

Amid the crisis, the government should have expedited foreign loan projects to bolster foreign currency reserves, he said.

The implementation of the ADP has been sluggish, with only 22.48% completed in the first seven months (July-January) of the current fiscal year, marking the lowest rate in a decade.

Several mega projects, including metro rail initiatives and higher education ventures, witness a decrease in allocation by Tk4,000 crore and Tk8,500 crore, respectively.

Seeking anonymity, an official of the Planning Commission told the Daily Sun priority has been given to poverty alleviation projects, ongoing project completion, and foreign-funded projects in the revised ADP for the current fiscal year.

“The health sector also faces a reduction in funding. Delays in releasing funds for projects have been a contributing factor.”

Important sectors like transport, communication infrastructure, power, education, health, urban and rural infrastructure, information technology, health, and agriculture have been prioritised, he added.

The total allocation in the revised ADP of the current fiscal year includes Tk2,23,553 crore for projects under 15 sectors, Tk3,390 crore for nine development fund sectors, and Tk18,056.97 crore for special needs development fund sectors, totaling Tk2,45,000 crore.