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Poverty paper eyes 5 goals

Targets Tk 3,457 crore spending

Staff Correspondent
With a target of spending Tk 3457 billion the National Economic Council (NEC) yesterday approved the revised second Poverty Reduction Strategy Paper (PRSP) for three fiscal years (FY2009-11).
Die revised second PRSP has projected a spending of Tk 425 billion for interest payment, I k 217 billion for defence expenditure, Tk 536 billion for infrastructure development including power, energy and communications, Tk 207 billion for health sector, and I k 319 billion for social safety network programmes.
The NEC meeting was held with Prime Minister Sheikh Hasina in the chair.
Five goals of the PRSP are macro-economic management for pro-poor growth, increase of allocation in the important sectors, construction of necessary infrastructures for pro-poor economic growth, social safety net programme for vulnerable group of people, and human resource development.
After one and a half years of the three-year revised PRSP it was given the final approval yesterday.
A high official of the planning ministry said that it had been talked about at different levels and the PRSP document was discussed in the parliament for the first time.
The original PRSP document was formulated during the caretaker regime but the present government revised it in the fight of its election manifesto.
The revised PRSP has been named "Steps towards Change: National Strategy for Accelerated Poverty Reduction II". In the title of the revised PRSP “Steps towards Change" replaced only the words "Moving Ahead".
Macro-economic indicators like GDP growth, revenue earning. investment, and inflation were projected in the second revised PRSP
The GDP growth was 5.9 percent in the last fiscal year, which was 6.2 percent in the previous fiscal year. In the current fiscal year the development partners have forecast that the GDP may plunge to a further low of5 to 5.5 percent.
However, estimated GDP growth in the PRSP is projected to be 6 percent in the current fiscal year and 6.7 percent in die next FY.
In the last few years the investment remained steady at 24.2 percent against the GDP Till now a sluggish mood is prevailing in the investment sector. However, the PRSP in die current fiscal year projected 24.6 percent invest-ment-GDP ratio and in the next FY it will stand at 26.1 percent.
Though the Inflation is showing an increasing trend it will reach 6.5 percent on average in the current fiscal year, which was 6.7 percent in the last FY. The PRSP shows that the inflation will slide downward in the next fiscal year and stand at 6.1 percent.
The government has been desperately trying to take the revenue-GDP ratio rate to 11 percent for the last few years but it has not succeeded. Indie last fiscal year the ratio came down to 10.4 percent from 10.8 percent of the year before.
In the current fiscal year the ratio has been projected at 11.4 percent and at 11.9 percent for the next fiscal year.
The government mainly following the advice of donor countries started the PRSP in 2005 instead of taking a five-year plan. From the year 2010-11 it will again revert to the five-year plan.
In the fiscal year 2010-11 the PRSP and the five-year plan will continue simultaneously.