The National Economic Council at a meeting on Tuesday approved the revised annual development programme at Tk 1,48,381 crore, slashing the size of the outlay by Tk 4,950 crore or 3.23 per cent from the original ADP adopted for the current fiscal year of 2017-2018.
The revised ADP was approved as proposed by the Planning Commission of the planning ministry at the meeting held at the NEC auditorium at Agargaon in Dhaka with prime minister Sheikh Hasina in the chair.
The size of the original ADP was Tk 1,53,331 crore with an estimation that Tk 96,331 crore would come from the domestic fund and Tk 57,000 crore would come from the foreign source as project assistance.
The NEC meeting also downsized the allocation for the self-funded projects to Tk 9,213.39 crore by reducing Tk 1,540.19 crore from the original allocation of Tk 10,753.58 crore.
If the allocation for the self-funded projects is included, the size of the overall ADP now stands at Tk 1,57,594.39 crore, down from the original Tk 1,64,084.83 crore.
Planning minister AHM Mustafa Kamal disclosed the information at a press briefing after the NEC meeting.
He said that in the revision the total cut was made from the allocation from foreign resources as per proposal of the Planning Commission due to a slower progress in implementation of foreign-funded development projects.
‘The government’s ADP implementing agencies, ministries and divisions, will not be able to spend the original allocation under project assistance head as the implementation of foreign-funded projects got slower for few months due to the Holey Artisan attack and other related issues,’ he said.
Of the allocation for the revised ADP, Tk 96,331 crore would come from the domestic sources while Tk 52,050 crore would come from the foreign sources, he said.
He also said that the size of the revised ADP might increase in future as the prime minister authorised him to consider the demands of ministries for additional allocation after proper scrutiny.
Replying to a question, he said that the NEC did not set any ceiling. The planning ministry will finalise the allocation after considering the need and performance of the ministries, he said.
It will be finalised at the second NEC meeting to be held in the second week of May, he added.
Kamal said that the GDP growth rate might cross the government’s estimation of 7.4 per cent for the year amid better performances of the macroeconomic indicators including export and remittance.
ADP implementation will also be better this year, he said.
Planning Division secretary Md Ziaul Islam said that the number of development projects increased to 1,658 in the revised ADP from 1,308 projects in the original ADP.
He said that the prime minister had also instructed the ministries for completing 300 projects by June this year.
The NEC also approved a proposal made by the Planning Division under which the line ministry would be able to transfer a portion of allocation to other projects from the original project based on the performance and necessity.
Based on the proposal of the Implementation Monitoring and Evaluation Division of the planning ministry, Hasina also instructed all ministries to take steps for reducing cost and time of implementation of development projects, said IMED secretary Mofizul Islam.
The planning minister said that she (prime minister) also asked the ministries not to appoint a single official to more than one projects as project director.
‘Ministries should also include the possible outcomes, rate of returns and risks of projects in the detailed project proposal,’ Kamal said quoting the prime minister.
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