TK 1.10 lakh crore allocation for ADP in FY17

The proposed National Budget for the fiscal 2016-17 has set an Annual Development Programme (ADP) with the original outlay of Taka 1,10,700 crore aiming to ensure a balanced development and higher growth.

In the new ADP, transport, education, power, rural development, health, and water sector have been given highest priority.

However, incorporation of Taka 12,645.80 crore of own financing projects from the corporations and autonomous organizations has inflated the ADP outlay to Taka 1,23,345.80 crore.

"Like previous years, we have estimated the ADP allocations while giving priority to ensuring regional parity, developing human resources and infrastructure and securing quality of spending with achievement of results," said finance minister Abul Maal Abdul Muhith while placing the national budget in the Jatiya Sangsad today.

"I propose to allocate 24.6 percent of development outlay to the human resource sector (education, health and other related sectors), 24.5 percent to overall agricultural sector (agriculture, rural development and rural institutions, water resources and related others), 13.5 percent to power and energy sector, 25.8 percent to communication (roads, railway, bridges and others related to communication) sector and 11.6 percent to other sectors," he added.

The government would provide Taka 70,700 crore from the national exchequer while the remaining Taka 40,000 crore is expected to come from project assistance for the actual ADP outlay of Taka 1,10,700 crore.

The original ADP outlay of Taka 1,10,700 crore is nearly 18 per cent or Taka 16,806 crore more compared to the revised ADP of Taka 93,894 crore in the outgoing fiscal 2015-16.

Planning ministry had formulated ADP of Taka 109,200 crore maintaining the ceiling of finance ministry but Prime Minister Sheikh Hasina in the meeting of National Economic Council (NEC) allocated additional Taka 1,500 crore following the demand from different ministries and divisions that tallied the ADP outlay to Taka 1,10,700 crore.

The new ADP for FY17 features a total of 1296 projects including 1001 investment projects, 133 technical assistance projects, 7 projects from the JDCF and 155 projects from the organizations own fund.

The ADP kept some 1068 projects on the unapproved new project list without allocation while some 349 projects on the unapproved new project list. The allocation will be made subject to the availability of project assistance.

Besides, the new ADP for the next fiscal also kept some 354 projects for completion in the next year alongside some 32 projects in the Public- Private Partnership (PPP) initiative.

In the ADP, Taka 6,026.48 crore has been allocated for Padma Multipurpose Bridge project that has so far witnessed 34 per cent progress.

The new ADP puts highest priority on transport sector considering the development of the communication sector alongside the importance of the Padma Bridge followed by education and religious affairs sector, physical infrastructure, water supply and housing sector, power sector, rural development and rural institution sector, health, nutrition, population and family welfare sector, agriculture sector, science and ICT sector, water sector and public administration sector.

In the ADP, transport sector has been given the highest allocation of Taka 28,554 crore or 25.8 percent of total allocation, of which Taka 6,026 crore has been given to the bridge division.

Besides, the power sector has been given second highest allocation of Taka 13,040 crore or 11.8 percent of total allocation while energy and mineral resources division has been allocated Taka 1,911 crore or 1.7 per cent of total allocation.

On the other hand, education and religious sector has been given Taka 14,457 crore while agriculture Taka 5,091 crore, rural development and rural institution 9,107 crore, water resources Taka 3,378 crore, industries Taka 2,125 crore, communication Taka 1,619 crore, physical infrastructure Taka 13,391 crore, health and family planning affairs Taka 6,235 crore, public administration Taka 3,048 crore and science and technology Taka 3,393 crore.

Source: BSS.