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Amended second PRSP finalised

Implementation by 2011 at Tk 3,45,740cr

Staff Correspondent
The government has finalised the amended second Poverty Reduction Strategy Paper (PRSP) to be implemented by June 2011, meaning its tenure would be one and a half years.
A total of Ik 3,45,740 crore has been estimated for the implementation of the amended second PRSP
Of the total estimated cost, the government will provide Ik 2,58,256 crore from its own resources while the remaining I k 87,484 crore is expected to come In foreign aid.
Finance Minister AMA Muhith revealed this after a meeting at the planning ministry yesterday. Planning Minister AK Khandker and the Prime Minister's Economic Affairs Adviser Dr Moshiur Rahman also attended the meeting.
The finance minister said the government is sincere in implementing the PRSP. He said the
6th five-year plan would start in July 2011.
Muhith also said adequate assistance would be available from the development partners to fill up the resource gap in implementing the PRSP
"The allocation of the second PRSP has been, somehow, recast. So, it will not be impossible for the government to fill up the deficit," Muhith toldThe Daily Star over cell phone.
Still if there is any deficit of fund it will be covered from the allocation of the 2011 fiscal year, the minister said.
In the last three years a little more than $600 crore has been received in development assistance, the minister said.
The cabinet in its meeting on September 9 discussed the second amended PRSP. The cabinet decided to discuss the draft PRSP in the parliament and finalise the document by December. Later the draft of the amended second PRSP was placed in the parliament for discussion on September 15, he said.
The second PRSP has identified five main strategies and five supporting strategies.
The five main strategies are: macro-economic management for poor-friendly economic growth, increase of investment in the important sectors, construction of required infrastructures, social safety net for vulnerable group of people and human resource development.
The five supporting strategies are: participatory empowerment of all ethnic groups in development activities, establishment of good governance, providing effective public service, facing environment and climate change for sustainable development, and increasing production capacity through development and expansion of technology.
The strategy paper also mentioned the risks and challenges to the macro-economy for poor-friendly growth in next two years.
In the summary of the strategy paper decline in the rate of growth has been stated as the biggest risk during the period of strategy implementation.
Increase in investment in GDP. stagnation in revenue growth, growth in export activities, stagnation in remittance inflow, involving ever growing manpower in the productive sectors and maintaining food security have been identified as some other challenges during the implementation period.
In yesterday's meeting at the Planning Ministry, previous Tk 3,75,000 crore plan was downsized to Tk 3,45,740 crore through some amendments and it was finalised. This will be sent to the cabinet for final approval.