NEC approves Tk 2.63 trillion original ADP for FY24

The National Economic Council (NEC) today approved a Taka 2.63 trillion original ADP for the next fiscal year (FY24) making highest allocation of Taka 759 billion (28.88% of allocation) in the transport and communication sector.

The approval came from a meeting of the NEC held today with its chairperson and prime minister Sheikh Hasina in the chair.

Out of the original ADP allocation of Taka 2.63 trillion , Taka 1.69 trillion will come from the local sources while Taka 940 billion will come from the foreign sources.

Briefing the reporters after the meeting, planning minister MA Mannan said that considering an allocation of Tk 116.74 billion for autonomous bodies and corporations, the overall ADP size has reached to Tk 2.75 trillion. The overall ADP size also includes an allocation of Tk 80.86 billion as allocation in development assistance sector.

Out of the overall ADP allocation of Taka 2.75 trillion, Taka 1.8 trillion will come from the local sources while Taka 948 billion will come from the foreign sources.

State minister for planning Shamsul Alam, planning commission members and secretaries concerned were present at the briefing.

The total number of projects in the new ADP totaled 1309 including 1118 investment projects, 22 survey projects, 80 technical assistance projects and 89 projects from the autonomous bodies and corporations.

Replying to questions of the reporters, Shamsul Alam said that as per the provisional estimation of BBS, the GDP growth of Bangladesh in the outgoing fiscal year (FY23) would reach to 6.03 per cent.

Besides, the rate of implementation of the ADP during the July-April period of the current fiscal year reached to 50.33 per cent with an expenditure of Tk 1.19 trillion.

Replying to another question, the planning minister said that the per capita income during the outgoing fiscal year has increased compared to the last year if it is calculated in Taka.

Revealing directives of the prime minister in the NEC meeting, the planning minister said that the premier asked all concerned to uphold the self respect and dignity of the country in all aspects.

Sheikh Hasina also asked all concerned to remain cautious and maintain austerity in public expenditure avoiding unnecessary spending and luxurious mindset. “We’ll spend but we must spend where it is required,” Mannan said quoting the Prime Minister as saying.

The planning minister said the premier also discouraged unnecessary foreign trips by the public servants, exploring alternate export markets since the extent of production and exportable items have increased over the years.

He said that the prime minister expressed her satisfaction at the meeting since the size of ADP has increased compared to the last year.

The prime minister emphasized on removing the barriers in attracting foreign direct investment (FDI) side by side directed the secretaries concerned so that the foreign loan supported projects are implemented in a speedy manner.

Mannan said that the premier asked those ministries and divisions which have enough capacity to come up with more projects as well as directed all ministries and divisions in general to expedite their rate of implementation.

“We’ll have to spend pursuing austerity…every penny should be spend where it is necessary as per the rules and regulations and also to ensure the welfare and safety of the people,” he added.

Asked whether the government would take projects for appeasing people ahead of the next general election, both Mannan and Shamsul Alam said that the government would continue to work to materialize its election manifesto. “We’ll continue to work as per our election manifesto…we work for ensuring peoples welfare,” Mannan added.

He said that they would continue their efforts also in the next year to expedite the rate of ADP implementation.

The planning minister said the prime minister during her recent tour in Washington told the World Bank that Bangladesh would repay the loans in due time if World Bank lends more loans.

Planning division secretary Satyajit Karmakar said that from now on they would officially use the terms direct project loan or direct project grant instead of foreign aid.

He informed that the NEC also took a decision to reflect the investments made under the Climate Change Trust Fund in the ADP.

Satyajit said the prime minister asked the lagging behind ministries and divisions to put utmost efforts to enhance their capacity to implement the ADP.

He also opined that the ministries like women and children affairs and environment, forests and climate change could come up with more projects.

Considering the highest 10 sector-wise allocation, the power and energy sector received the 2nd highest allocation of around Taka 444 billion (16.88 per cent)  followed by education sector with Taka 298 billion (11.36 per cent), housing community facilities with Taka 270 billion (10.28 per cent), health sector with Taka 188 billion (7.18 per cent) , local government and rural development with Taka 162 billion (6.16 per cent), agriculture sector with Taka 107 billion (4.07 per cent) , environment, climate change and water resources with Taka 89 billion (3.42 per cent), industry and economic services with Taka 54 billion (2.04 per cent) and science and information technology sector with Taka 53 billion (2.02 per cent).

According to the new ADP for FY24, the highest 10 allocation recipient ministries and divisions are local government division with Taka 405 billion (15.40 per cent of allocation), road transport and highways division with Taka 341 billion (12.95 per cent), power division with Taka 338 billion (12.84 per cent), railways ministry with Taka 149 billion (5.69 per cent), secondary and higher education division with Taka 141 billion (5.36 per cent), science and technology ministry with Taka 130 billion (4.94 per cent), health services division with Taka 122 billion (4.64 per cent), ministry of primary and mass education with Taka 120 billion (4.57 per cent), ministry of shipping with Taka 95 billion (3.60 per cent) and bridges division with Taka 91 billion (3.45 per cent).

Out of the highest allocation recipient 10 projects in the new ADP, the Rooppur Nuclear Power Plant Project received an allocation of Taka 97 billion followed by Matarbari 2x600 MW Ultra Super Critical Coal Fired Power Project, 1st revised with Taka 91 billion, 4th Primary Education Development Programme (PEDP-4), 1st revised with Taka 86 billion, Dhaka-Ashulia Elevated Expressway Construction, 1st revised with Taka 59 billion, the Padma Bridge Rail Link, 1st revised project with Taka 55 billion, Hazrat Shahjalal International Airport Expansion, 1st phase, 1st revised with Taka 55 billion, Physical Feasibility Development (PFD), 1st revised with Taka 47 billion, Dhaka Mass Rapid Transit Development Project (Line-1) with Taka 39 billion, Bangabandhu Sheikh Mujib Railway Bridge Construction project with Taka 38 billion and Dhaka Mass Rapid Transit Development Project (Line-6), 2nd revised with Taka 34 billion.