Project funds to move fast now
From next fiscal year, development projects will see half their allocations for the year automatically deposited into the accounts without the need for any paperwork as the government looks to enhance utilisation of development funds.
At present, the ministries and divisions have to seek the finance division's signature each quarter for the funds to be released, a tedious process that has often been blamed for slow implementation of projects.
But at a high-level meeting of the budget preparation committees, which was presided over by Finance Minister AMA Muhith, earlier this week, it was decided that on the first of July and October the allocations for the first and second quarters will be transferred respectively.
For third quarter's funds, consent of the line ministry is required; for fourth quarter, finance division's permission is needed.
The meeting observed that every year there is a shortage of funds for revenue budget implementation, whereas on average 17 percent of the funds for development budget remains unused.
The ministries and divisions cite various reasons, one of which is that the finance division delays in releasing the money.
In this context, a decision has been taken such that funds for the first two quarters are sent to the accounts without any exchange of letters.
In the first nine months of the current fiscal year, only 45.65 percent of the total allocation for the development budget has been used, which is more or less the same as in the previous three years.
Also at the meeting, it was decided that the budget for fiscal 2018-19 will be Tk 4.6 lakh crore.
The size of the annual development programme for next fiscal year may be Tk 1.73 lakh crore, said a finance ministry official who was present at the meeting.
On the other hand, the total revenue collection target may be set at Tk 3.4 lakh crore, of which the National Board of Revenue will shoulder Tk 2.9 lakh crore.
In the safety net programme the number of beneficiaries will be increased but the amount of benefit received by each will remain same.
Fuel subsidy will return after a gap of few years as the price in international market has increased. The Bangladesh Petroleum Corporation has already sent a proposal in this regard.
Another new sector for subsidy will be included in the next budget. The government has taken an initiative to give house building loans to 14 lakh government staff from next fiscal year. A 5 percent subsidy will be extended if the rate of interest is 10 percent.
After the current fiscal year's record GDP growth of 7.65 percent (as per the preliminary projection of the Bangladesh Bureau of Statistics), the target for next fiscal year would be 7.8 percent.
This is the third consecutive year in which the economic growth was above 7 percent after years of languishing in the neighbourhood of 6 percent.
On the other hand, the inflation target for next fiscal year will be set at 5.6 percent.
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