The Finance Ministry has highlighted the crucial need for a balanced approach to budgetary allocations between recurrent and capital expenditure, recognizing their collective impact on the country's growth prospects and social welfare. This perspective is outlined in the ministry's document, the 'Medium Term Macroeconomic Policy Statement (2023-24 to 2025-26)', which underscores the different priorities of developed and developing nations in terms of government spending. Developed countries often prioritize transfers and subsidies, whereas developing economies are more inclined towards investing in social and community services. Despite the positive outcomes from income transfers in enhancing citizens' lives, there is a pressing need to ramp up capital expenditure to cater to the increasing public investment demands and foster the creation of productive assets. Budgetary classifications broadly categorize government spending into recurrent and capital expenditures. Recurrent expenditure encompasses wages, goods and services purchases, subsidies, transfer payments, and interest on loans. In contrast, capital expenditure is directed towards building and enhancing productive assets, including developments under the Annual Development Program (ADP) and non-ADP initiatives. Sikder Group responds to allegations following ACC case against directors The trend in capital expenditure, representing a portion of the total expenditure, has seen an upward trajectory, albeit with fluctuations, while recurrent expenditure has shown a gradual decrease. The revised budget for the fiscal year 2022-23 allocated 59.1 percent to recurrent expenditures, with projections indicating a slight reduction over the next three years. Meanwhile, capital expenditure is set to rise from 40.9 percent in the 2022-23 fiscal year to 41.3 percent by 2026, reflecting an ongoing commitment to bolstering public investment. The increase in recurrent expenditure from 56.7 percent in FY 2017-18 to 59.4 percent in FY 2021-22 was influenced by various stimulus packages introduced to support vulnerable groups during the combined challenges of the COVID pandemic and the Russia-Ukraine conflict. Conversely, capital expenditure through the ADP, a critical component of the budget, has experienced modest growth from 4.5 percent of GDP in FY18 to an estimated 5.1 percent of GDP in FY 2022-23. This strategic focus on balancing recurrent and capital expenditures aligns with the government's objectives to drive sustainable economic growth while ensuring the welfare of its citizens through prudent fiscal management. Eid holiday: Trade activities through Benapole port to be suspended for 5 days

Experts at an event Monday called for proper selection  of projects in the annual development plan (ADP) and the need for reducing inequalities in allocations for water, sanitation and hygiene (WASH) projects between urban and rural or hard-to-reach areas. They made the call in a pre-budget press conference hosted by WaterAid Bangladesh, Power and Participation Research Center (PPRC), FANSA-BD, FSM Network, Bangladesh Water Integrity Network, Sanitation and Water For All, End Water Poverty, MHM Platform, UNICEF and WASH Alliance International. An analysis by PPRC, in collaboration with WaterAid, found that allocation to the WASH sector was 5.44 percent (Tk14,517 crore) of total ADP (Tk266,793 crore) in the fiscal year (FY) 2021-22. The figure also shows WASH allocations in hard-to-reach areas fell drastically in FY22, with allocations for the areas being 72 percent below the level five years earlier in FY17. READ: Experts want THR in tobacco control plans The analysis also shows geographical inequality of WASH allocations remains significant, where cities and towns have received the highest percentage of the allocations compared to rural, char, hilly, and coastal areas in previous years. These under-developed areas' needs are higher than those in urban regions, and the upcoming budget must consider the acute needs of the marginalised pockets. "Bangladesh had remarkable success in achieving WASH-related MDG era targets with drinking water made available to 98 percent of the population and near eradication of open defecation. SDG era targets are more challenging with the focus on safe water and safely managed sanitation as well as under hygiene," Dr Hossain Zillur Rahman, chairman of PPRC, said. "Although the inequitable spatial allocation has been repeatedly raised over the years, no change has been forthcoming."

The government is taking a series of measures to enhance the implementation rate of Annual Development Programme (ADP) in an effort to overcome the lack of capability to use project funds and speed up the pace of development. Allocations for ADP in the budget have been increasing steadily over the years but challenges remain in implementing those. “That's why the government has taken an effective move to take the ADP implementation to a satisfactory level,” according to an official document. Steps being mulled by the government include introduction of IBAIS++ digital platform for all ministries and bringing massive reform in the disbursement of funds. From the last 2019-20 fiscal, project directors have been given the authority to disburse all four installments of government funds. The document said that these steps would help ensure the highest usage of project assistance besides playing an auxiliary role in resisting the misuse of funds in implementing projects. It noted that one of the main sources of creating capital in public sector is ADP. Also read: Ambitious ADP worth Tk 2.13trn on the cards ADP Implementation Over The Years The ADP implementation in 2013-14 fiscal was 91% against the revised budget of Tk 600 billion up from 86.6% in 2014-15 fiscal against the revised budget of Tk 750 billion. In 2015-16 fiscal, the revised budget for ADP was Tk 910 crore but the implementation was 88.9% whereas in 2016-17 fiscal the revised budget was Tk 1,107 billion but the implementation was 76%. In 2017-18 and 2018-19 fiscals, the revised budgets for ADP were Tk 1,483.8 billion and Tk 1,670 billion while the implementation rates were 80.6% and 88.2% respectively. Meanwhile, the preliminary allocations for ADP for 2013-14, 2014-15, 2015-16, 2016-17, 2017-18 and 2018-19 fiscals were Tk 658.7 billion, Tk 803.1 billion, Tk 970 billion, Tk 1,107 billion, Tk 1,533..8 billion and Tk 1,730 billion. This means considering the initial allocation for the ADP, the implementation will be much lower. In the 2019-20 fiscal year, the ADP implementation rate was 80.18% amid the Covid-19 pandemic that stalled all works in the country for a long time as the government enforced months-long general holidays to curb the spread of the virus. For the 2020-21 fiscal, the government had approved a Tk 2,051.45 billion ADP, but in March it was revised to Tk 1,976..43 billion.  

The annual development programme (ADP) for 2021-22 fiscal will prioritise the transport, education, health and agriculture sectors, with a view to off-setting the adverse impacts of the coronavirus crisis that have weighed on the economy since March last year. According to the Planning Commission and Planning Ministry sources, the size of the ADP in the upcoming budget is likely to be in the range of Tk 2130 billion- just over a third of what is shaping up to be a Tk 6 trillion finance bill. Of the total ADP, some Tk 1500 billion, or Tk 1.5 trillion, would come from local sources while the remaining Tk 630 billion is expected to come from foreign sources. Some adjustments in the size and source may come when the National Economic Council (NEC) approves the final ADP for the next fiscal. The number of projects to be included in the ADP for 2021-22 is around 1900, including 1480 investment projects. For the 2020-21 fiscal, which expires on June 30,  the government is working with an ADP of  Tk 2051.45 billion, giving the highest priority to the transport sector. Also read: ADP for new fiscal year likely to be cleared Tuesday with tough challenges ahead Of the original ADP, Tk 1346.43 billion was slated to come from local sources while Tk 705.02 billion from the foreign sources. The number of projects in the ADP was 1584 to start with,  including 1456 investment projects, 127 technical assistant projects, and one project from the Japan Debt Cancellation Fund (JDCF). Besides, there were 89 projects of the autonomous bodies and corporations. But the National Economic Council (NEC) in March approved  a revised ADP of Tk 1976.43 billion, downsizing it by some Tk 75 billion.. The entire reduction was down to a cut in the foreign funding, which came down to Tk 630 billion from Tk 705 billion.  

State Minister for Power Nasrul Hamid has expressed indignation at the below par performance of Bangladesh Petroleum Corporation (BPC) as the state-owned body failed to make satisfactory progress in implementing some top priority projects.

State Minister for Power, Energy and Mineral Resources Nasrul Hamid has directed the power distribution companies to conduct surveys on a regular basis to have feedback from consumers about their service quality.

Agriculture Minister Dr Muhammad Abdur Razzaque on Wednesday asked his ministry officials to design big projects to face the fallout of Covid-19 pandemic.

The Planning Commission on Monday finalised the annual development programme (ADP) involving Tk 205,145 crore for the next 2020-21 fiscal year.