Laggard projects losing funds to faster ones in RADP
No new dev schemes as PC begins revising ADP
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Revision of the present Annual Development Programme (ADP) began with emphasis on more fund allocations for the ongoing projects instead of incorporating fresh ones-unlike previous practice.
As the Planning Commission (PC) began its work on clipping and stitching anew components of the development budget, or ADP, officials said Saturday the focus also turned on diverting funds into faster-performing projects from slow-going ones.
The commission has asked the government agencies to cut allocations from the slow-progressing projects and divert those funds into the fast-moving ones, they said.
PC officials pointed out that since there are constraints on the public funds, the ministries and divisions had been asked to be cautious about undertaking fresh development projects in the upcoming revised ADP, or RADP.
The PC began the process of revising the Tk 1.64 trillion worth of ADP of the current financial year (FY), 2017-18, against the backdrop of ministries and divisions having failed to fulfill stipulated targets in executing their respective projects.
Out of the total development budget (worth Tk1.64 trillion), Tk 955.15 billion has been allocated from government's internal resources, Tk 604.16 billion from external resources as project aid and the remaining Tk 81.54 billion from state-owned agencies' own funds.
"We have already sent guidelines to the ministries and divisions. We have asked them to follow that in revising their development programme and send it to the PC by January 7. After getting those projects we will start to scrutinise those for reallocating funds," said a senior PC official.
He said most of the ministries and divisions failed to implement their project according to their own action plan which forced the PC to revise the ongoing ADP.
Besides, some of the government agencies are seeking higher funds while some want to sacrifice theirs in the original ADP, the PC official added.
"We are very much cautious about incorporating fresh projects into the upcoming revised ADP to ensure adequate fund allocations for the ongoing ones. This time we want to ensure quality project execution," a Member of the PC told the FE.
The government over the years had enhanced development budget manifold. The ADP size in last 10 years had swelled seven times to Tk 1.64 trillion in the current FY2018 from Tk 235 billion in FY2008.
The Planning Commission has asked the government agencies to include only those foreign-aided projects for which external funding has already been confirmed through the signing of agreement or firm assurance of the necessary funds from the respective development partners.
The commission has suggested incorporating those schemes which will ensure linkage to prospective public-private partnership (PPP).
The PC official said they have plans to finalise the revision of the ADP by next month, as preparing the next national budget for FY 2018-19 begins in no time from now.