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Revised budget bloats for subsidies

Rejaul Karim Byron
The revised budget of the current fiscal is likely to be increased to Tk 93.610 crore from Tk 87,137 crore due mainly to additional expenditure in relief work, interest payments and subsidies in fertiliser and petroleum products.
Sources say the Finance Division has already sent accounts of revised allocation of nondevelopment budget to clifferent ministries. With the revised allocation, the gross expenditure ofnon-development budget will be increased by Tk 16,906 crore.
On the other hand, the government has already reduced the development budget to Tk 22,500 crore from Tk 26,000 crore. Slow pace of development projects under the Annual Development Programme (ADP) has forced the government to decrease developmentspending.
Finance ministry sources say
non-development expenditure in the original budget was Tk 60,637 crore, which may be revised to Tk 71,110 crore with an increase byTk 10,473 crore.
According to the revised allocation of non-development budget, out of 47 ministries and departments, allocations for 37 are going to be increased.
The preliminary estimate shows that non-development allocation for the agriculture ministry is going to be increased byTk 1,939 crore, the food and disaster management by Tk 837 crore, defence ministry by Tk 398 crore, home ministry by Tk 355 crore, and women and children affairs ministry by Tk 313 crore.
Besides, gross expenditure of the Finance Division may be increased byTk 12,434 crore. Such a huge increase is mainly for capital investment, the sources add.
They say allocation for the agriculture ministry will be increased to Tk 3,900 crore from the initial allocation of Tk 2,250 crore mainly for subsidies in fertiliser.
Allocation for the food and disaster management ministry is going to be increased by Tk 837 crore in the current fiscal. The government is going to increase allocation for relief works to Tk 879 crore from Tk 466 crore. Besides, allocation for VGF (Vulnerable Group Feeding) is going to be increased to Tk 854 crore from Tk 807 crore.
The sources say allocation for food import in the current fiscal may be increased to Tk 2,913 crore from the initial estimate ofTk 1,576 crore.
But at the same time as the firocurement target of food grains rom local market failed, allocation in this sector was decreased to Tk 1,543 crore fromTk2,264 crore.
Vulnerable Group Development (VGD) allocation under the women and children affairs ministry may be increased toTk 736 crore from 13(435 crore.
The sources say the net loss in petroleum products and fertiliser in the current fiscal may stand at Tk 14,000 crore and the government is considering providing Tk 9,500 crore from the current budget.
Allocation for payment interest against foreign and local loans may be increased to Tk 11,800 crore from the original allocation of Tk 10,790 crore, add the finance ministrysources.