Staff Correspondent:

Tk216,000 crore has been allocated for the Revised Annual Development Programme (RADP) for the current fiscal year, marking an 11.83% year-on-year decrease.

National Executive Committee (NEC), chaired by the chief adviser approved this revised budget on Monday (March 3).

The allocation to the RADP for the current fiscal year has decreased by Tk49,000 crore, or 18.49%, compared to the original ADP. Government fund allocation has dropped by Tk30,000 crore, or 18%, while foreign fund allocation has decreased by Tk19,000 crore, or 19%.

As a result, the revised RADP allocates Tk135,000 crore to government funds and Tk81,000 crore to foreign funds. The original ADP for the current fiscal year was Tk265, 000 crore, with Tk165,000 crore allocated to government funds and Tk100,000 crore to foreign assistance.

Compared to the previous fiscal year’s ADP, the RADP has decreased by Tk18,000 crore or 6.84% with a reduction of Tk7,500 crore or 4.44% in government funds and Tk10,500 crore or 11.17% in foreign assistance.

Planning commission officials said, this year, the demand was only Tk191,113 crore, prompting an increase in RADP size through a block allocation of Tk26,000 crore to expedite the approval of new projects and increase expenditure. In previous years, ADP allocations were revised by around Tk500-600 crore, they added.

The Planning Commission attributes the decrease in demand to contractors leaving many projects due to the July-August movement and the government change, requiring new tenders for contractor appointments. Additionally, many project directors have left, and although new ones have been appointed, they have yet to accelerate implementation.

The rise in construction material prices and the value of the dollar has also hindered progress. As a result, ministries and departments have reduced their demands out of concern that funds won’t be spent.

Allocation drops for transport, power, and energy, rises for education

In the current fiscal year’s RADP, allocations for transport, power, and energy have decreased, while education has seen an increase. The transport and communication sector received the highest allocation of Tk48,253 crore, or 22.34% of ADP, but this is down from 28.87% in the last fiscal year’s RADP.

The power and energy sector saw a significant reduction, receiving only 14.77% compared to 34.24% in the previous fiscal year. However, allocations for education, housing and community facilities, local government and rural development, agriculture, health, science and technology, and industry and economic services have increased.

The education sector, with an allocation of 9.42%, received the third-highest funding, up from 3.90% in the last RADP. The health sector’s allocation decreased to 3.92%, from 4.18% last year.

Housing and community facilities received 9.10%, local government and rural development 7.85%, agriculture 4.46%, industry and economic services 2.06%, and science and technology 2%.