Tk 2.25trn dev budget okayed for FY22

Staff Correspondent

19 May, 2021 12:00 AM printer

A Tk 2.25 trillion (Tk 2,253.24 billion) Annual Development Programme (ADP) was cleared on Tuesday for FY 2021-22, keeping the highest allocation for the transport and communications sector.

The approval came at a meeting of the National Economic Council (NEC) virtually held with Prime Minister Sheikh Hasina in the chair.

Tk 1,373 billion of the ADP is estimated to come from domestic resources and Tk 880.24 billion is expected to come as project assistance (PA) from development partners.

The meeting also gave the nod to a Tk 114.69 billion development budget for the autonomous public corporations, which increased the total ADP size to Tk 2,367.93 billion, Planning Minister MA Mannan told reporters after the meeting. 

Earlier on May 9, Planning Commission made a final proposal for the same amount of ADP in an extended meeting held with the planning minister in the chair.

The next fiscal’s ADP is much larger than the current fiscal’s revised ADP of Tk 1.98 trillion, which has been curtailed from the original allocation of Tk 2.05 trillion.

Implementing agencies could not spend even half of the revised ADP outlay after 10 months of FY21 mainly because of the corona crisis, suggest the latest official data.

Prime Minister Sheikh Hasina has stressed the completion of the projects that could not be finished due to the COVID-19 pandemic, MA Mannan told reporters. She also instructed for quick implementation of the projects linked to the wellbeing of common people.

Mannan said the Premier also emphasized more researches, adding that separate fund should be earmarked for conducting researches, especially in the health and agriculture sector.

He said the Prime Minister noted that the foreign consultants in development projects should be welcomed to such extent which is necessary, but foreign consultants should not be allowed in a wholesale way. Foreign consultants should have to be recruited after proper scrutiny, the PM said.

The new ADP includes a total of 1,426 projects including 1,308 investment projects and 118 technical assistance schemes.

If 89 projects of autonomous bodies are included, the total number of projects under the new ADP stands at 1,515.

Tk 41.47 billion has been set aside as block allocation for special development support in the new ADP.

A total of 596 unapproved new projects have been incorporated in the new ADP without any allocation while some 141 new unapproved projects have been included in the new ADP subject to the availability of foreign funds.

Some 88 ADP projects are expected to be implemented under the Public-Private Partnership (PPP) initiative while some 356 projects have been kept for completion by June 30, 2022.

Besides, some 73 projects which were kept for completion by June this year have been carried forward to the next fiscal year (FY22).

According to sector-wise allocation in the new ADP, the transport and communication sector received the highest allocation of Tk 616.31 billion or 27.35 per cent of the ADP budget, followed by the power and energy sector’s Tk 458.68 billion or 20.36 per cent and the housing and community facilities sector’s Tk 237.47 billion or 10.54 per cent.

Besides, the education sector fetched Tk 231.78 billion or 10.29 per cent; health sector Tk 173.07 billion or 7.68 per cent, local government and rural development sector Tk 142.74 billion or 6.34 per cent, environment, climate change and water sector Tk 85.26 billion or 3.78 per cent, agriculture sector Tk 76.65 billion or 3.40 per cent, industry and economic services sector Tk 46.38 billion or 2.06 per cent and the science and ICT sector received Tk 35.87 billion or 1.59 per cent of the ADP budget.

In ministry-wise allocation, Local Government Division got the highest allocation of Tk 338.96 billion, Road Transport and Highways Division Tk 280.42 billion, Power Division Tk 253.49 billion, Ministry of Science and Technology Tk 206.34 billion, Ministry of Railways Tk 135.58 billion, Health Services Division Tk 130 billion, Secondary and Higher Education Division Tk 119.20 billion, Bridges Division Tk 98.13 billion, Ministry of Primary and Mass Education Tk 80.22 billion and the Ministry of Primary and Mass Education received Tk 68.71 billion. 

Out of the 10 highest allocation recipient projects for the next fiscal year (FY22), the Rooppur Nuclear Power Plant project received an allocation of Tk 184.26 billion, Matarbari coal power plant Tk 61.62 billion, Fourth Primary Education Development Project (PEDP-4) Tk 50.54 billion, Dhaka Mass Rapid Transit Development Project Tk 48 billion, Padma Rail Link (1st revised)  project Tk 38.24 billion, Bangabandhu Sheikh Mujib Railway Bridge Construction project Tk 35.80 billion, Padma Multipurpose Bridge Project (2nd revised), Tk 35 billion, Dhaka-Ashulia Elevated Expressway project Tk 32.27 billion, Expansion and strengthening of power system network under DPDC area Tk 30.51 billion and Hazrat Shahjalal International Airport Expansion (1st phase), 1st revised project Tk 28.28 billion.  

Referring to the rise in per-capita income to $2,227, Mannan said the per capita income has witnessed a jump of 9 per cent despite the pandemic and this shows the resilience of Bangladesh’s economy.

He also informed that the current size of the country’s GDP is Tk 30,111 billion or $355.04 billion.

The Planning Minister said the economy of Bangladesh is performing well despite the shock of the pandemic due to the good performances in the agriculture sector and also for the domestic labour and the hard-earned remittances being sent by the expatriate Bangladeshis.