Rules toughen for new ADP schemes

The finance ministry has warned relevant government bodies that new projects will not be included in the revised annual development programme (RADP) for the current fiscal year if their details are not sent to the Planning Commission by January 2022.

The finance ministry issued a circular in this regard on Wednesday in a bid to ensure optimum use of the country's limited resources through budget allocation for the necessary and priority projects.

Every year, at least 1,400 to 1,500 projects are included in the ADP. Last year though, a whopping 1,886 projects were placed in the development programme even though the original number of projects was around 1,600.

Many of these projects listed with the ADP require just Tk 1 lakh to Tk 2 lakh allocations. However, the implementation of these types of projects is usually held up for years and the project cost increases as a result.

With this backdrop, the finance ministry decided not to include any new projects under the RADP this year without prior scrutiny.

The ministry circular said the list of projects would have to be limited while less important initiatives will be stuck from the RADP.

It went on to say that small-scale projects that have similar objectives would have to be included under an umbrella project.

A total of 1,534 projects were included in the ADP of the current fiscal year with unapproved projects numbering about 609.

Besides, 141 projects that were included in the list are set to be implemented through foreign assistance.

According to the circular, the approved allocation for particular projects cannot be used for other projects, even if left unspent.

In addition, project expenditure will have be reported as per the economic code.

The finance ministry made a similar announcement in July earlier this year, stating that a maximum 50 per cent of the budgetary allocation for purchasing motor vehicles and arranging overseas travel for relevant government officials can be spent.

Considering the coronavirus fallout, the purchase of motor vehicles and international travel for government officials had been halted until June 30.

However, the finance ministry informed that funds left unspent has to be returned rather than being put to use elsewhere.