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No additional fund for development projects

Published : 25 Dec 2019 09:22 PM | Updated : 07 Sep 2020 05:47 PM

In the face of repeated increasing of different project costs after finalisation, the government is going to take a tough stance over the issue.

All the ministries have been instructed not to make additional expenditure to the allocated fund of different development and maintenance sectors.

Sources said, recently finance ministry has issued a gazette notification instructing tough measures to contain additional expenditures. 

The gazette also instructed not to spend the unused money of development projects in maintenance sector, sources added.

The ministries have been instructed not to propose for additional fund for any already approved scheme.

The revised ADP has been directed to limit the number of projects. They have been asked to skip less important projects and allocate money to important projects.

The source added that the revenue has not been achieved at the desired rate so far in the current budget. In order to meet the expenditure, the government is raising bank loans. Because of this, the finance department is following a strict policy for controlling expenditure. It is expected to borrow BDT 78 billion in the current financial year.

But to handle the situation, the loan was taken up to BDT 36 thousand 169 crore till October 31. Out of which, the bank has taken out 30 thousand 600 crore from the bank and 5 thousand 500 crore from the savings.

Regarding the loan, Finance Minister AHM Mustafa Kamal said,  government is borrowing more from the bank this time to meet the budget deficit. The amount of money that is being borrowed in the budget is being increased. In fact, we used to take more money from savings. Previous;y we used to take money from savings, but this time more money is being taken from the bank.

Former Director General of the Government Research Firm BIDS and Former Chief Economist of the Central Bank Dr MK Mujeri said, the government is handling the expenditure through bank loans. In five months of the financial year, the amount government has taken is very high.

As a result, the government is facing a kind of financial pressure. Besides, there is a shortage in comparison to the revenue target. So, in near future, efforts are being made to hold the expense balance. He added that the budget deficit will increase if income is reduced after the expenditure is fixed. Then there will be more problems.

Initially, a budget of BDT 5 lakh 23 thousand 190 crore has been announced in the current financial year. But this budget will not be fully implemented. For this, the Ministry of Finance has started a cut-off initiative. A directive has been given to all the ministries from the Finance Ministry so that the revised budget does not demand fresh allocation.

According to sources, the total revenue collection target for the current financial year is BDT 3 lakh 77 thousand 810 crore. The finance ministry has given special direction in the reform of this revenue collection.

It is said that in order to improve the revenue collection, the continuation of revenue collection should be taken into account in the first six months of the fiscal year 2017-2018 and 2018-2019 and the first three months of the current fiscal year. 

The target of operating expenditure in the current budget has been estimated at Tk 2 lakh 77 thousand 938 crore. The finance ministry has given strict directive to spend it in the management sector. There it is said that the allocation of any item not included in the supply and services sector cannot be increased.

If there is no provision in the original budget, the revised budget cannot be allocated for the collection of new resources..

In terms of expenditure in the development sector, it is said that the priority projects should be selected in light of the government's strategy and goals. No project can be kept without allotment at the core of RADP.

In addition, proposals for multiple projects for the same purpose under the same organization should be brought under a bunch of projects, not individually. However, the projects that support poverty alleviation should be given importance in the revised ADP.