The Finance Division has sent a circular to 10 ministries asking them to prepare the performance indicator and their respective budget for the next three years.

The government had earlier initiated large-scale reform programmes in preparing the budget and implementing it. Last year it asked four ministries under the reform programmes to prepare their budget, and has added six more this year.

However, the ministries will now have an additional responsibility of making a performance indicator besides preparing budgets and prepare and publish a report on their financial and non-financial activities.

The ministries of education, agriculture, social welfare, women and children affairs, health and family welfare, communications, primary and mass education, fisheries and livestock, water resources, and local government department have come under the Finance Division directive.

Each of the ministries will also have a budget management committee headed by its secretary. The committee will set medium term target and assess the achievement on the basis of the performance indicator.

The committee will also monitor progress of a certain programme and undertake steps to ensure that the set targets are achieved.

Every year a sizeable portion of the thousands of crore taka in revenue and development budget is wasted. There are departments and directorates under different ministries that have little work to do, but staff of those organs are eating away big chunks of the revenue budget.

Moreover, many non-priority projects are incorporated in the annual development programmes, wasting public money.

Citing these examples, donors have been pressing the government for preparing performance reports by the ministries and holding discussions on them in parliament.

A finance ministry source said the government will have to introduce a law if it wants to discuss the performance reports of the ministries in parliament. Initially, the ministries will internally review their activities and expenditure.

A lot of changes has been brought about in preparing the MTBF. Tenure of the projects taken up by various ministries will not exceed three years.

On completion of the MTBF, the concerned ministry will have to send copies to the Finance Division and the Planning Commission and the three will sit to finalise it.

Finally, the MTBF will be placed in parliament after the National Economic Council (NEC) approves it.

The finance ministry has already sent letters to the 10 ministries to submit their budget proposals by October 31. Sources said the proposals will be ready for approval by the NEC by December.