Development and Non-Development Expenditure

Of the total public expenditure, target of Tk. 222,491 crore (18.7 percent of GDP) for FY 2013-14, the allocated amount for non-development and other expenditure is Tk. 156,621 crore (13.2 percent of GDP) and ADP expenditure is Tk. 65,870 crore (5.5 percent of GDP). In the previous fiscal year (FY 2012-13), ADP expenditure was Tk. 52,068 crore
(5.0 percent of GDP). This proposed ADP was later revised to Tk. 49,656 crore (4.8 percent of GDP). In case of ADP allocation, the agriculture sector received the highest allocation like the previous fiscal year, although its share has fallen from 30.9 percent in FY 2012-13 to 25.4 percent in FY 2013-14.

On the other hand, ADP allocation on the Overall Communication has almost doubled, from Tk. 8,242 crore in FY 2012-13 to Tk. 15,216 crore in FY 2013-14 primarily due to bloc allocation on the Padma Bridge.

The implementation of ADP in the first quarter (July to October) of the FY 2013-14 is only about 15 percent which was 5 percent less than that of previous fiscal year. In the first four months of FY 2013-14, total implementation of the ADP has stood at Tk. 227.25 billion, which in actual amount is Tk. 0.68 billion less than that of the previous fiscal year.

A mismatch is observed between the target of MTMF and its actual changes in case of broad money. Growth in credit has been constrained because of tightening by the monetary policy. There has also been lesser investment demand. The asset quality and the risk management situation of the banking sector have also undergone negative changes due to failed policy of liberalisation and deregulation. The inflation rate has also increased in recent months.