ADP to be slashed by 8pc on fund dearth |
High fuel bill, low revenue earning reasons
The government will slash its Annual Development Programme (ADP) by 8 percent in the face of resource constraints caused by excessive spending on fuel oil and less revenue earning than expected.
BDNEWS says a review meeting on ADP implementation chaired by Finance Minister M Saifur Rahman yesterday also decided to take 25 new projects, including 6 revised ones, for implementation in the current fiscal year.
"We are going to reduce current ADP for lack of the revenue resources," Saifur told reporters after the meeting held at the NEC conference room.
"We are taking new projects on the basis of priority, especially in agriculture, infrastructure, power and textile sectors," he added.
The minister laid emphasis on speedy implementation of the projects in infrastructure sector and said only foreign-aided projects would be squeezed.
UNB says the priority projects selected for implementation in this fiscal year will be taken to the next meeting of the Executive Committee of the National Economic Council (Ecnec) for approval.
"Resources from the poorly implemented projects will be diverted to help implement the priority projects," Saifur told reporters.
He asked the Planning Commission members, heads of six divisions under the Commission and officials concerned for quick implementation of the projects as the budget for the next fiscal year is approaching fast.
"We'll hold a meeting next week to examine the ADP implementation process and to see which projects can surrender the resources," the minister said replying to a query.
He, however, said it will not be possible to divert resources from local components, but it can be done from external resources.
Replying to another question, Saifur said there has been a huge rise in spending on fuel oil due to price hike in the international market while the revenue earning has been lower than expected for less import of taxable items and higher import of non-taxable items.
A senior official, who attended the meeting, said projects of the current fiscal involving Tk 24,500 crore will suffer from non-availability of funds and the government will implement 25 new and six revised projects on priority basis.