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Priority must go to power BIDS suggests Tk 26,000cr

ADP Staff Correspondent
Bangladesh Institute of Development Studies (BIDS) has recommended preparation of a Tk 26,000 crore Annual Development Programme (ADP) for the next fiscal year with highest priority to power sector.
"Given the low implementation trend the size of the ADP in FYI0 should be limited to about Tk 26,000 crore," said the BIDS report on "Meeting the Challenges of Global Recession: Recommendations for the National Budget 2009/2010".
The BIDS placed a set of recommendations at a seminar held at its conference room yesterday. BIDS Research Director MAsaduzzaman presented the keynote paper in the seminar presided over by its Director General Mustafa K Mujeri.
Planning Minister AK Khandker who attended the seminar as chief guest told journalists that the size of the ADP is likely to be around Tk 29,000 crore in next fiscal year's budget. "We want the size of ADP to bebig. Ifithappens, then money will reach poor people, employment will increase and poverty will decrease," he said.
However, AK Khandker told the BBC last,evening that the size of the ADP in the next fiscal year is likely to be around Tk 30,000 crore.
Die recommendation said the development of power sector should receive a high priority in FY10 budget. In this regard, the government should undertake measures to make available the captive power existing in different establishments to the national grid on an urgent basis along with several other measures to augment short-term power supply.
In view of the large portfolio of incomplete road projects in successive ADPs, the report said the budget should prioritise existing road projects and allocate resources for projects nearing completion. To ensu re quality, the government should limit the total number of projects included in ADP at a manageable level and include only approved projects for which resources are available.
BIDS Research Director Zaid Bakht renewed the size and quality of the ADR Giving example of several projects of road sector, which started between 1999 and 2005, and the allocations of fund in the projects, he showed that it would take 10 to 339 years to complete the work if the current rate of implementation persists.
He said bridge construction on Dhaleswari river at Tangail would fake 339 years if this slow trend continues. Construction of Pabna-Bandherhat-Nazirganj-Rajbari link road would need 103 years.
The BIDS recommendation also said the issue of legalising "black money" is contentious and needs careful consideration keeping in mind both equality and productivity implications. A study should be done before taking a decision in this regard. It said the legalisation process should involve payment of appropriate taxes and see that those who pay tax regularly are not penalised and impose strict conditions such as the legalised money can only be used for investment in productive sectors.
Taking part in the discussion, former Finance Minister M Syeduzzaman said quick decision should be taken on coal policy for augmenting power generation. He also said the responsibility for collecting land revenue should be given to the local government bodies.
Managing Director of Palli Karma Sahayak Foundation Kazi Mesbah Uddin Ahmed said, "Our public expenditure is only 16to 17percentoftheGDP which is much lower than several neighbouring countries. The size of the public expenditure should be increased."
Planning Minister AK Khandker said, "We are aware that the power sector is in the midst of a long-term crisis. The development of the sector has been given high priority by the government. We have already allocated Tk 600 crore to the power sector in the recent stimulus package announced by the government. This sector will also receive adequate allocation in FY10 budget while measures will also be taken to attract more foreign and private investment in the sector."