At such a slow rate of implementation, the government did not have to borrow from the banks and rather retarded Tk 1,100 crore of its loans.

According to the latest planning ministry report, foreign-aided projects suffered heavily. It will be placed at a meeting of the National Economic Council (NEC) chaired by Prime Minister Khaleda Zia.

The original ADP size of FY03 was Tk 19,200 crore. When the donors led by International Monetary Fund (ADP) and the World Bank (WB) criticised the allocation as "unrealistic and ambitious" and asked the government to slash it substantially, the ADP was revised down to Tk 17,100 crore.

While trimming the ADP, the government faced stiff resistance from different ministers and lawmakers who wanted projects involving their ministries or constituencies untouched.

Sources quoting the draft report said out of the Tk 17,100 crore revised allocation, the government could utilise Tk 15,219 crore. Of this, 96 percent of Tk 10,741 crore local resource component was spent. On the other hand, only 82 per cent of the Tk 6,359 crore foreign aid component was utilised.

"A good part of foreign loans could not be disbursed because of our failure to comply with donors' conditions," a high official of the planning ministry said. But, he pointed out, the utilisation rate of local resources deserves to be appreciated.

The revised budget sought Tk 1,501 crore in bank loans. But ultimately the government did not take any bank loan for the ADP.

The government's net loan stood at Tk 20,164 crore in June 2002 and it reduced by Tk 1,101 crore to Tk 19,062 crore in June 2003.

The revised revenue budget was set at Tk 25,307 crore, but at the end of the year, only about Tk 24,500 crore was spent.

On the flip side, the government's borrowing from savings instruments increased during last fiscal. Against an envisaged Tk 3,522 crore, the net collection from sales of such instruments rose to Tk 4,306 crore.