Shutdown reins in development activities in April
Development spending in Bangladesh decelerated in April on the back of the countrywide shutdown enforced since March 26, with the government managing to use Tk 8,136 crore during the month, down 23 per cent from the previous month.
The government spent Tk 13,623 crore under the annual development programme (ADP) in April last year, according to data from the planning ministry.
In the first 10 months of the fiscal year, Tk 98,840 crore was expended from the development budget, which is 49.13 per cent of the full-year allocation, the lowest in at least five years, according to data shared at a meeting at the planning ministry yesterday.
Development activities hit the brakes at a time when it tends to gather pace every year as the fiscal year draws to a close to show a flattering result.
However, the slowing trend of development spending will continue into the new fiscal year as the government diverts funds to meet the immediate needs to prop up the economy caving under the burden of the global pandemic.
Yesterday, Planning Minister MA Mannan chaired a meeting where the ADP for fiscal 2020-21 was finalised.
The ADP for next fiscal year would be 6.33 per cent higher than this year's revised development budget at Tk 205,145 crore.
The implementation status of the development budget for the current year was also presented at the meeting.
The meeting decided to give priority to the health and agriculture sectors, social safety net programmes and job creation initiatives in the next fiscal year.
The meeting decided to send a proposal to the prime minister to hold the next meeting of the National Economic Council (NEC) any day between May 18 and May 20 to receive the approval for the ADP.
Because of the social distancing now being observed, it is not clear whether the NEC, chaired by the prime minister, would meet, as would have been the case under normal circumstances, to approve the ADP.
The prime minister may approve the ADP through an executive order and thereafter it would be passed in parliament. Alternatively, the prime minister and some key ministers may sit and give the consent.
If the NEC meeting takes place in the presence of ministers, those related to the priority sectors would only be presented, said an official of the planning ministry.
At least 2 per cent of GDP may be lost in this fiscal year and this prompted the government to focus on priority projects, said a finance ministry official.
The government has unveiled a social protection and economic stimulus package amounting to Tk 95,619 crore, or $11.3 billion, which is equivalent to 3.5 per cent of Bangladesh's GDP.
Of the funds, Tk 10,000 crore has already been disbursed. Some Tk 3,000 crore out of Tk 5,000 crore allocated to export-oriented industries has also been released, the official said.
Besides, Tk 1,250 crore has been released to provide cash support to 50 lakh families whose breadwinners have lost jobs because of the shutdown.
The meeting also finalised the allocation for the 10 mega projects for the next fiscal year. Of the projects, seven are being implemented under the national budget and the rest under their respective ministries.
Among the large projects, Metro Rail project will get Tk 4,370 crore, Matarbari project Tk 3,670 crore, Rooppur nuclear power plant Tk 15,691 crore, Payra seaport Tk 350 crore and Padma Rail Link Tk 3,685 crore.
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