Finance Minister AMA Muhith has admitted to the lag in government's two pledges for this fiscal year--execution of public-private partnership initiative and district budgets.
The PPP guideline has not yet been prepared because of bureaucratic tangles, which led to the unutilisation of Tk 2,500 crore budgetary allocation for project implementation under such initiative although eight months of the current financial year have already lapsed, the minister pointed out while exchanging views with the new leadership of Economic Reporters Forum (ERF) in the conference room of the Finance Division yesterday.
"By nature bureaucracy does not encourage change.... This sounds harsh but it's something like that," Muhith told the journalists.
However, he expects some progress in the PPP initiative in the next two or three months. The schemes to be implemented under PPP are power and transport sectors, no projects else.
Muhith pointed his finger at the existing accounting system of different ministries as the reasons behind the non-implementation of separate budgets for districts, despite announcement for enforcing such budgets during FY 2009-10.
“Such budget implementation will not be possible right now. The Medium Term Budgetary Framework, under which resources are usually allocated for different ministry projects, cannot spilt district-wise budget,” Muhith further said.
In early next month, according to the minister, parliament is expected to sign the insurance bill into a law. The revised budget and a report on macro-economic situation will also be placed in mid-March. The revision of the 2009-10 budget will take place twice in March and June.
Responding to a query, the finance minister said of the Tk 5,000 crore stimulus package, Tk 3,500 crore has already been allocated.
Muhith said the package will continue up to June and then a decision on its fate would be taken.
During the meeting with ERF, he listed some measures on implementation of development projects, which include quick processing of the project approval and cautious selection of project directors.
Muhith expects that the web portals that have been opened in 64 districts and 1,000 unions will help expedite the pace of project execution.
On another query, the minister made an assurance that there will be no hike in the prices of petroleum products.
Power price will be hiked to some extent, he added.
ERF President Monowar Hossain and General Secretary Abu Kawser also spoke.