Less important projects won't get budget money

The finance ministry has asked all ministries and divisions not to allocate funds for the less-important development projects as a portion will be diverted to the more important sectors amid considering the pandemic.

It has also asked the ministries to funnel funds into the components of the moderately important projects in the development budget, the execution of which is important during this period, the ministry said in a notice issued on Wednesday.

The fund will, however, continued to be channelled into the ministries of heath and agriculture.

The Ministry of Finance has given the directive for implementing the projects and allocating money under the revised Annual Development Programme, or ADP, of the fiscal year, 2019-20.

The government is implementing some 1,800 projects under the Tk 1.92 trillion ADP, which was revised earlier.

On Tuesday, planning minister MA Mannan told the FE that they would divert unspent money from the ongoing projects of the ADP.

He also hinted that if the government high-ups decide to cut funds from the less-important projects for diverting money to the priority schemes, they would do that.

The notice has divided the development projects into three categories-highest priority, moderate priority and less-priority.

The classification is aimed at streamlining project implementation while creating room for diverting some funds to the most important activities of the government.

In the first category, the notice asked the ministries to focus on implementing only the highest-priority projects at this moment and allocating funds accordingly.

In the second category, it has asked the ministries and divisions to allocate money to the components of the moderately-important projects, whose execution is deemed a must at this moment.

In the third category, all the ministries and divisions had been directed to obtain permission from the finance ministry before funds are allocated to the less-important projects or procurement is made.

The missive has made it clear that the restrictions will not be applicable to the health and the agriculture ministries.

The government has recently announced Tk 827.50 billion relief packages for the enterprises, businesses and the agriculture sector in an attempt to speed up recovery from the impact of the COVID-19 pandemic.

Officials said some of the funds will be diverted to the stimulus packages and the rehabilitation of the people affected by lockdown spurred by the deadly virus that has killed over a hundred persons while infecting thousands in the country.

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