The finance minister has proposed a Tk 2,503-crore raise in allocation for the Local Government Division (LGD) for 2014-15 fiscal emphasising the need for reorganisation and decentralisation of the local government.
In his budget speech, AMA Muhith proposed an allocation of Tk 15,464 crore for LGD.
In FY 2013-14, Tk 12,961 crore was proposed and LGD received Tk 13,322 crore in the revised budget.
While placing his budget proposal, Muhith said the government would take holistic approach encompassing all relevant issues to make the local government institutions more powerful and equally responsible.
"We want to shift the seats of power to the local levels, as far as possible, doing away with the heavily centralised administration," Muhith said.
The government will gradually revamp the present shapes of the local government bodies with effective hierarchical divisions to provide them more power and authority to handle issues like education, health, law enforcement and social safety, the minister said.
"With the decentralisation of power, the government will have to take appropriate measures for administrative reforms as centralised administration is so deeply rooted that it is quite hard to dismantle," Muhith added.
Muhith also showed optimism about the formulation and implementation of the strategy for decentralisation despite the slow process of the administrative reform.