The government is likely to approve a Tk 2.28 lakh crore revised annual development programme (RADP) for the current fiscal year (FY) today (Wednesday), trimming down about Tk 18,500 crore fund from foreign assistance, officials said.
However, officials said this is the highest amount foreign aid cut from the revised ADP in the FY 2022-23.
The National Economic Council (NEC) will sit today to approve the RADP for FY 23.
Prime Minister Sheikh Hasina will preside over the meeting, to be held at the Planning Commission in the capital on Wednesday.
The officials concerned said they would place the draft RADP at the NEC meeting for approval.
The Economic Relations Division (ERD) has sent a proposal to the planning commission about their sector wise allocation for the foreign funded projects.
The government has approved an ADP of Tk 2.46 lakh crore for FY23 and Tk 92,020 crore of it is supposed to come from foreign assistance.
But in the RADP, the foreign aid amount is likely to come down to Tk 73,520 crore, said a planning commission official.
Officials also said the government will not reduce the allocation from local sources because it plans to use them in projects of important ministries.
State minister for planning Prof ShamsulAlam said the foreign aid has been trimmed in the revised ADP due to slow implementation of the foreign funded projects.
He also said lack of skilled project officials is another reason for implementing the foreign aided projects along with complexity of tender process and appointment of consultants.
“Several times, we have asked the ministries concerned to speed up the foreign aided projects. But it did not work,” he added.
On January 10, the ERD held meetings with different ministries and divisions asking to increase the use of foreign funds in implementing projects.
The original ADP allocation was Tk 2,25,324 crore for FY 2021-22. It was later brought down to Tk 2,07,550 crore after the commission cut Tk 17,774 crore — or 7.87 percent of the original total — in the RADP.
In FY 2020-21, Tk 17,976 crore was also cut in the RADP and Tk 9,800 crore in FY 2019-20.