It also approved a revision of the current fiscal's ADP, downsizing it by 12.24 percent.

Although the current fiscal's original ADP of Tk 24,500 crore was slashed by Tk 3,000 in the revised one, the government still went for a bigger ADP for the next fiscal.

Since foreign aid inflow is likely to decline, local resources will constitute 57 percent of the next fiscal's total ADP.

Despite different expert quarters' suggestions for keeping a lesser number of projects in the next fiscal's ADP, it has a total of 886 projects while the current ADP has 859.

Among the projects in the next ADP, 428 are still unapproved and have no allocation for them.

Sources said political influence will be used to incorporate these projects later on.

Education, power and transport sectors got the highest priority as far as allocations are concerned in the new ADP.

The prime minister (PM), who presided over the meeting, urged all officials concerned to become more alert to implementing the projects as soon as possible.

She said the country's macro-economic stability is facing some troubles due to high oil prices in the international market. She also said due to development in almost all the areas of socio-economic sectors, the demand for power is increasing by leaps and bounds. Some problems have arisen in meeting this huge demand and its impact is also visible in industrial production, she added.

The amount of local resources in the next year's ADP was set at 57 percent or Tk 14,812 crore while foreign resources will make up about 43 percent or Tk 11,188 crore.

The PM said in FY 05-06 local resources made up 51.60 percent of the ADP, but in FY 06-07 it will constitute 57 percent. She also said the portion of local resources have risen due to increased revenue income from different sources.

Finance Minister Saifur Rahman told reporters that although the contribution of local resources in the ADP is rising, no new tax will be imposed, neither will any tax rate be increased. And although revenue income has declined a bit, earning from income tax and VAT is increasing, he said.

The service sector is doing pretty good and revenue income from the mobile phone sector also rose substantially. So, even if there are more local resources in the new ADP there will be no problem in mobilising them.

Education and religious affairs got the highest allocation with Tk 3861 crore or 14.85 percent of the total new ADP. The second largest allocation went to transport sector (Tk 3309 crore or 12.73 percent), the third largest to power (Tk 3,161 crore or 12.16 percent) and the fourth largest to rural development and institutions (Tk 3,139 crore or 12.07 percent).

A block allocation to the tune of Tk 1,283 crore was kept aside in the new ADP. Upazila development assistance programme was allocated Tk 100 crore from the block. It got Tk 150 crore in the current fiscal's revised ADP.

Union council development assistance programme received an allocation of Tk 180 crore in the next fiscal's ADP while the amount was Tk 120 crore in the current fiscal's revised ADP. Tk 160 crore was earmarked for Pouroshobha development assistance in the new ADP while the current revised ADP allocated Tk 150 crore for it.

Zilla parishads got an allocation of Tk 124 crore, the six municipality corporations got Tk 100 crore, and Tk 61 crore was allocated for village governments in the next fiscal's ADP, which are very similar to what the current fiscal's revised ADP allocated for these sectors.

CURRENT FISCAL'S REVISED ADP
NEC also approved the current fiscal's revised ADP, allocating Tk 21,500 crore for it, downsizing it by Tk 3,000 crore from its original size of Tk 24,500 crore. Local resources constitute 50.43 percent of it while foreign resources constitute 49.57 percent.

Allocations for agriculture, education, transport, health, oil, gas and natural resources sectors were reduced in the revised ADP. While allocations for rural development, power and infrastructure sectors were raised.

In the revised ADP, allocation for the agriculture sector was reduced to Tk 1088 crore, down by Tk 37 crore. Block allocation of Tk 500 crore for agricultural assistance in the original ADP was dropped altogether in the revised one.

Agriculture ministry sources said the block allocation existed only in the ADP document, it was never handed over to them in reality. They sent letters to the finance ministry on several occasions over the last four months, but to no avail, they said.

Allocation for health, nutrition, population and family welfare was re-fixed at Tk 2,110 crore, down by Tk 159 crore from the original ADP.

Allocation for education and religious affairs was cut by Tk 434 crore bringing it down to Tk 2863 crore.

Allocation for oil, gas and natural resources was cut by Tk 650 crore, bringing it down to Tk 394 crore.

Allocation for the transport sector was set at Tk 2855 crore, down by Tk 184 crore.

A planning ministry source said these amounts actually are not cutbacks, rather the respective ministries could not spend them. So the planning ministry just reallocated the amounts to those ministries that require more than what had been allocated before.

Allocation for rural development and institutions was raised to Tk 3,056 crore, up by Tk 60 crore. For the power sector Tk 263 crore was added making the allocation Tk 3382 crore; for physical planning, water supply and housing sectors an additional Tk 202 crore was allocated bringing the allocation up to Tk 1497 crore.