Rejaul Karim Byron and Dwaipayan Barua

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The government has slashed the development budget for the current fiscal year by 3.26 per cent, keeping the local portion of the fund almost unchanged while trimming the foreign part.

As a result, the size of the Annual Development Programme (ADP) has come down to Tk 197,643 crore from Tk 205,144.79 crore in the original plan.

The allocation of the government fund to the revised ADP was trimmed by only Tk 7 lakh.

In the original ADP, the government had contributed Tk 134,643.07 crore for 2020-21. Its revised allocation now stands at Tk 134,643 crore.

The portion of foreign funds has been slashed by 10.64 per cent, or Tk 7,501.72 crore, to Tk 63,000 crore from Tk 70,501.72 crore.

The National Economic Council in a meeting chaired by Prime Minister Sheikh Hasina yesterday approved the planning ministry’s revision proposal.

Among the 58 ministries and divisions, the allocation for 36 ministries and divisions was slashed. That for the rest 22 rose.

The local government division got the highest raise, of Tk 3,038.87 crore, taking its total from Tk 31,131.32 crore in the original ADP to Tk 34,170.19 crore. It was to give a boost to the rural economy.

The health services division witnessed the second-highest increase, of Tk 1,925.48 crore. Its allocation now stands at Tk 11,979.34 crore, up from Tk 10,053.86 crore.

This resulted from government initiatives to purchase Covid-19 vaccines and improve associated treatment facilities.

During a press briefing, Md Jainul Bari, secretary to the planning ministry, said the prime minister put emphasis on securing Covid-19 vaccines and ensuring food security and distribution.

A total of 442 projects were selected for completion in the fiscal year. The prime minister stressed completing the projects and said the deadline would not be extended, said the secretary.

For the primary and mass education ministry, the increase was by Tk 1,282.26 crore, while for the water resources ministry Tk 1,095.43 crore and the road transport and highways division Tk 936.01 crore.

Among the ministries or divisions, the local government division got the highest allocation (17.41 per cent) followed by the road, transport and highways division (13.12 per cent), the power division (11.17 per cent), the railways ministry (6.11 per cent), and the health services division (6.10 per cent).

Sector-wise, the highest allocation went to transport (24.90 per cent of the fund), followed by infrastructure, water supply and housing (13.40 per cent), education and religion (12.43 per cent), power (11.10 per cent) and rural development and rural institutions (9.25 per cent).

The NEC allowed autonomous bodies and corporations to spend Tk 11,628.90 crore. Of the sum, Tk 7,753.90 crore will come from their own sources and the rest Tk 3,875 crore from foreign sources.

If this amount is taken into account, the total size of the revised ADP will stand at Tk 209,271.90 crore.

Among those witnessing a cut, the science and technology ministry witnessed the biggest downing of Tk 6,485.25 crore. Originally it was allocated Tk 17,388.94 crore, meaning the figure had now reached Tk 10,903.69 crore.

It was followed by the Bridges Division (by Tk 3,369.46 crore) and Power Division (by Tk 2,868.76 crore).

There are now 1,785 projects under the revised development budget.