From now on, all the UPs will receive the annual block allocation at a time directly from the government, which the policymakers think would also reduce corruption and delay in project approval and implementation process.

To make the new measure effective Tk 89.74 crore has already been allocated for the remaining period of the current fiscal year. The fund will be sent directly to around 4,500 UPs soon. Each UP will get around Tk 2 lakh.

The UPs at present get funds from the annual development programme (ADP) through the upazila parishads, which often delays implementation of development programmes due to political interference.

The ministries of finance and planning approved the proposal of the Local Government Division of the LGRD and co-operative ministry on Sunday.

"It's a major breakthrough towards empowerment of local government," LGRD and Co-operatives Minister Abdul Mannan Bhuiyan told The Daily Star yesterday.

"We truly want to strengthen the local government institutions and run the bodies by the elected representatives of the grassroots people," he said.

Bhuiyan said, "It will also ensure timely implementation of projects and reduce project costs. Planning and implementation processes will be easier. Accountability of UPs will be enhanced substantially in respect of utilisation of fund."

Officials said the initiative would facilitate people's participation in local level expenditure, policymaking and budgetary processes. This will develop participatory planning and budgetary system to prioritise development schemes.

They said that usually each UP gets around Tk 4 lakh a year from the ADP for development work. The ministry has a plan to enhance the allocation.

Officials said the direct funding arrangement would reduce scope for political interference in the fund allocation for UPs as the UP chairmen would not need to convince the lawmakers or upazila officials for getting funds on time.

The funds are allocated usually on the instructions of the members of parliament (MPs) who are the ex-officio advisors to the upazila parishads.

The direct funding was a longstanding demand of the UPs, donors, and the civil society but this could not be implemented in the past due to strong opposition from the MPs and a section of officials involved in financial management.

The release of funds from upazila to UPs is a difficult task and the UP chairmen have to spend much time to convince upazila officials and bribe them for the approval of projects and release of funds, ministry officials alleged.

The officials are now working to prepare a "fund utilisation policy" for the UPs and it would be announced by next two weeks. The policy would facilitate the UPs to utilise the funds properly and in a transparent way.

Mannan Bhuiyan believes the initiative to create "Union Parishad Development Assistance Fund" and direct funding will bring further dynamism at union level development work and the UPs would be able to serve people more.