21 days ago

NEC approves Tk 2.63 trillion original ADP for FY24

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The National Economic Council (NEC) today (May 11) approved a Tk 2.63 trillion original ADP for the next fiscal year (FY24), making the highest allocation of Tk 759.45 billion (28.88 per cent of allocation) for the transport and communication sectors.

The approval came from a meeting of the NEC held today with its Chairperson and Prime Minister Sheikh Hasina in the chair.

Out of the original ADP allocation of Tk 2.63 trillion, Tk 1.69 trillion will come from local sources, while Tk 0.94 trillion, or Tk 940 billion, will come from foreign sources.

Briefing the reporters after the meeting, Planning Minister MA Mannan said that considering an allocation of Tk 116.7402 billion, the overall ADP size has reached Tk 2.7467402 trillion. The overall ADP size also includes an allocation of Tk 808.682 billion as allocation in the development assistance sector.

Out of the overall ADP allocation of Tk 2.7467402  trillion, Tk 1.7989509 trillion will come from local sources while Tk 947.7893 billion will come from foreign sources.

State Minister for Planning Dr Shamsul Alam, Planning Commission members and secretaries concerned were present at the briefing.

The number of projects in the new ADP totaled 1309 including 1118 investment projects, 22 survey projects, 80 technical assistance projects and 89 projects from the autonomous bodies and corporations.

Replying to questions of the reporters, Dr Shamsul Alam said that as per the provisional estimation of BBS, the GDP growth of Bangladesh in the outgoing fiscal year (FY23) would reach 6.03 per cent.

Besides, the rate of implementation of the ADP during the July-April period of the current fiscal year reached to 50.33 per cent with an expenditure of Tk 1.1906439 trillion.

Replying to another question, the Planning Minister said that the per capita income during the outgoing fiscal year has increased compared to the last year if it is calculated in taka.

Revealing the directives of the Prime Minister in the NEC meeting, the Planning Minister said that the Premier asked all concerned to uphold the self-respect and dignity of the country in all aspects.

Sheikh Hasina also asked all concerned to remain cautious and maintain austerity in public expenditure avoiding unnecessary spending and luxurious mindset. "We’ll spend but we must spend where it is required," Mannan said quoting the Prime Minister as saying.

The Planning Minister said the premier also discouraged unnecessary foreign trips by the public servants, exploring alternate export markets since the extent of production and exportable items have increased over the years.

He said the Prime Minister expressed her satisfaction at the meeting since the size of ADP has increased compared to the last year.

The Prime Minister emphasized removing the barriers in attracting foreign direct investment (FDI) side by side and directed the secretaries concerned so that the foreign loan-supported projects are implemented in a speedy manner.

Mannan said that the premier asked those ministries and divisions which have enough capacity to come up with more projects as well as directed all ministries and divisions in general to expedite their rate of implementation.

"We’ll have to spend pursuing austerity…every penny should be spent where it is necessary as per the rules and regulations and also to ensure the welfare and safety of the people," he added.

Asked whether the government would take projects for appeasing people ahead of the next general election, both Mannan and Dr Alam said that the government would continue to work to materialize its election manifesto. "We’ll continue to work as per our election manifesto…we work for ensuring people's welfare," Mannan added.

He said that they would continue their efforts also in the next year to expedite the rate of ADP implementation.

The Planning Minister said the Prime Minister during her recent tour in Washington told the World Bank that Bangladesh would repay the loans in due time if World Bank lends more loans.

Planning Division Secretary Satyajit Karmakar said that from now on they would officially use the terms direct project loan or direct project grant instead of foreign aid.

He informed that the NEC also took a decision to reflect the investments made under the Climate Change Trust Fund in the ADP.

Satyajit said the Prime Minister asked the lagging behind ministries and divisions to put utmost efforts to enhance their capacity to implement the ADP.

He also opined that the ministries like Women and Children Affairs and Environment, Forests and Climate Change could come up with more projects.

Considering the highest 10 sector-wise allocations, the power and energy sector received the 2nd highest allocation of around Tk 443.93 billion (16.88 per cent) followed by education sector with Tk 298.89 billion (11.36 per cent), housing community facilities with Tk 270.46 billion (10.28 per cent), health sector with Tk 88.80 billion (7.18 per cent), local government and rural development with Tk 162.04 billion (6.16 per cent), agriculture sector with Tk 107.07 billion (4.07 per cent), environment, climate change and water resources with Tk 89.95 billion (3.42 per cent), industry and economic services with Tk 53.62 billion (2.04 per cent) and science and information technology sector with Tk 53.21 billion (2.02 per cent).

According to the new ADP for FY24, the highest 10 allocation recipient ministries and divisions are Local Government Division with Tk 405.03 billion (15.40 per cent of allocation), Road Transport and Highways Division with Tk 340.62 billion (12.95 per cent), Power Division with Tk 337.75 billion (12.84 per cent), Railways Ministry with Tk 149.60 billion (5.69 per cent), Secondary and Higher Education Division with Tk 140.86 billion (5.36 per cent), Science and Technology Ministry with Tk 129.80 billion (4.94 per cent), Health Services Division with Tk 122.09 billion (4.64 per cent), Ministry of Primary and Mass Education with Tk 120.18 billion (4.57 per cent), Ministry of Shipping with Tk 947.4 billion (3.60 per cent) and Bridges Division with Tk 906.4 billion (3.45 per cent).

Out of the highest allocation recipient 10 projects in the new ADP, the Rooppur Nuclear Power Plant Project received an allocation of Tk 97.07 billion followed by Matarbari 2x600 MW Ultra Super Critical Coal Fired Power Project, 1st revised with Tk 90.81 billion, 4th Primary Education Development Programme (PEDP-4), 1st revised with Tk 85.86 billion, Dhaka-Ashulia Elevated Expressway Construction, 1st revised with Tk 58.70 billion, the Padma Bridge Rail Link, 1st revised project with Tk 55 billion, Hazrat Shahjalal International Airport Expansion, 1st phase, 1st revised with Taka 54.99 billion, Physical Feasibility Development (PFD), 1st revised with Tk 46.96 billion, Dhaka Mass Rapid Transit Development Project (Line-1) with Tk 39.11 billion, Bangabandhu Sheikh Mujib Railway Bridge Construction project with Tk 37.78 billion and Dhaka Mass Rapid Transit Development Project (Line-6), 2nd revised with Tk 34.25 billion.

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