The government may slash the size of the annual development programme by Tk 8,000 crore or 4.62 per cent in the revised ADP for the current fiscal year (2018-2019) following a slow progress in implementation of the development budget.
The size of the revised ADP may stand at Tk 1.65 lakh crore if the National Economic Council approves the proposal placed by the planning ministry.
An NEC meeting is scheduled to be held today with prime minister Sheikh Hasina in the chair at the NEC conference room at Agargaon in Dhaka.
The government adopted the original ADP at Tk 1.73 lakh crore, excluding the allocation from own funds of the autonomous bodies, estimating that Tk 1.13 lakh crore would come from the domestic fund and Tk 60,000 crore would come from the foreign source as project assistance.
Under the proposed revised ADP, the allocation from the foreign source segment may be cut by Tk 9,000 crore to Tk 51,000 crore following a slower progress in implementation of the foreign-funded development projects in eight months (July-February) of the fiscal year.
On the other hand, the allocation from the domestic fund may be increased by Tk 1,000 crore to Tk 1.14 lakh crore.
The size of the original ADP is Tk 1,80,869 crore if the allocation of Tk 7,869 crore from the own funds of the autonomous bodies and corporations are included.
Planning ministry officials said they would put forward the proposal for resetting the size of the revised ADP as per demands of the ministries and divisions for funds and the resource limit set by the finance ministry.
The finance ministry usually does not set the limit of the allocations from the own funds of the organisations.
The planning ministry revises the allocations based on progress in implementation of projects under the self-fund.
Earlier, the planning ministry and the Economic Resources Division of finance ministry sought proposals from ADP executing agencies on their demands for allocations from both domestic and foreign funds.
The government agencies requested ERD for slashing the allocations from foreign fund by Tk 9,000 crore, they said.
They said like the previous year, the prime minister might further increase the allocation from the government fund based ondemands of the ministries and divisions at the meeting.
The government agencies have already placed the demand for additional allocations of more than Tk 28,000 crore from domestic resources, they added.
Progress in execution of ADP was only 39.13 per cent or Tk 70,772 crore in eight months (July-February) of FY19.
ADP implementation remained sluggish in the current fiscal year due to slower progress during the national election period, as well as due to the traditional problems in land acquisition and delay in procurement.
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