Revised budget for FY25: Government going for generous ADP

In a first, the ministries and divisions would be allocated more funds than they are seeking in the revised development budget for this fiscal year as the government attempts to rev up a slowing economy.
"The implementation has been slow due to the political changeover," said a planning ministry official.
In the first seven months of the fiscal year, only 21.52 percent of the ADP budget could be used.
"Usually, the ministries seek additional funds to what they are allotted. But this time, they demanded less than Tk 200,000 crore."
"Usually, the ministries seek additional funds to what they are allotted. But this time, they demanded less than Tk 200,000 crore."
Since the finance division has made more funds available than the ministries' demands, the planning commission will accommodate the additional funds in the revised annual development programme (ADP), he said.
Subsequently, the number of the projects under ADP has been increased to 1,434 from 1,326 in the original ADP.
Of the 57 ministries and divisions, the allocation for 48 increased by 26 percent in the revised ADP.
The other eight ministries and divisions' allocation increased by 0.81 percent, the planning ministry official added.
Subsequently, the size of the revised budget for fiscal 2024-25's ADP is likely to be Tk 226,125 crore, down 19 percent from the original budget.
The draft of the revised ADP is set to be presented in today's extended Planning Commission meeting to be presided by Planning Adviser Wahiduddin Mahmud.
Once the Planning Commission finalises the revised ADP, it will be placed at this month's National Economic Council meeting to be chaired by Chief Adviser Muhammad Yunus.
The proposed revised ADP will see about 46.5 percent of the total allocation going to three sectors: transport and communication, power and energy, and education.
Of the ministries and divisions, the local government and rural development ministry (Tk 36,159 crore), which is 16.74 percent of the total allocation. It was followed by power division (Tk 21,475 crore), road transport and bridges ministry (Tk 18,624.6 crore), primary and mass education ministry (Tk 12,764 crore) and science and technology ministry (Tk 12,129.63 crore).
In the draft proposal, the portion of government's own funds that would go towards ADP has been slashed by about 18.2 percent to Tk 135,000 crore and foreign funds by 19 percent to Tk 81,000 crore.
Besides, the ADP for the state-owned enterprises could be Tk 10,125 crore, which was Tk 13,288 crore originally.
The revised ADP will incorporate seven new directives that the ministries and divisions must follow.
As per one directive, the ministries have to submit combined proposals for small projects instead of sending separate proposals.
Also, the ministries have to give priority to projects taken in light of Green Climate Resilient Development (GCRD), National Adaptation Plan (NAP), Nationally Determined Contribution (NDC) and Delta Appraisal Framework (DAF).
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