ADP: Housing sector takes priority over agri, health, other key areas

The authorities have allocated several times more than the planned amount for the housing sector, particularly for plots and flats for government officials, in the Annual Development Plan (ADP) of the current fiscal year under the eighth five-year plan.

On the flip side, allocations for many significant sectors such as agriculture, health, and general public services have been reduced in the ADP, as per a review by the planning commission.

The commission also noted that there are inconsistencies between the ADP allocations and the five year plan. The review report was supposed to be presented before the special meeting of the planning commission on Wednesday.

Economists as well as individuals associated with the process believe that the higher allocations in the housing sector are intended to appease the government officials. But the government should slash investments in those unproductive sectors and focus on investments in job creation.

According to the planning commission data, the latest ADP has been set at Tk 2746.74 billion. The  housing and community services sector received a significant share of 10.28 per cent, though a 2.3 per cent allocation was planned for the current fiscal in the eighth five year plan.

Insiders said the authorities are spending the healthy allocations to construct residential flats for government officials in different districts, including Dhaka and Chattogram. At the same time, some flats and plots are being built for selling to low and middle-income people.

Former state minister for planning Shamsul Alam defended the higher allocations for housing, saying that the allocations have been made considering requirements of the officials.

He also attributed the increased allocations to the Covid-19 pandemic, Russia-Ukraine war, and the subsequent realities.

“The economy plunged into large-scale uncertainty due to the Covid-19 pandemic and the Russia-Ukraine war. Various new sectors have emerged in the changed context, where additional allocations had to be made,” he noted.  

It was learned from the planning commission review that the general public service sector, which was slated to receive 5.3 per cent of the total ADP as per the five year plan, got less than 1 per cent.

Under this sector, the authorities undertake reform measures at the ministries,  for creating skilled manpower and ensuring smooth public services. However, the projects are struggling to be implemented due to lack of required funds.

The agriculture sector was supposed to receive some 11.5 per cent of the total ADP, but received only 4.07 per cent. Similarly, the health sector, which was expected to receive 11.1 per cent, got only 6.16 percent.

Meanwhile, the transport and communication sector, slated for 17.4 per cent, received nearly 29 per cent of total allocations. The power and energy sector received 17 per cent, against a plan of 14.8 per cent.

The planning commission suggested necessary steps to address the inconsistencies between the ADP allocations and the eighth five year plan as one and a half years are still due in implementation of the plan.