Bangladesh - Development Budget

Development budget

The development budget is presented to Parliament at the same time as the revenue budget each year. The FY 1988 development budget called for resource mobilization of US$1.6 billion, the majority of which--more than 85 percent--was to be provided by foreign grants and loans. The great bulk of capital expenditures went to the Annual Development Programme.

The FY 1988 Annual Development Programme provided financing for 818 projects, including 684 investment projects, 80 technical assistance projects, and 54 public sector-funded projects. Almost all the projects were carryovers continued from previous years. The Annual Development Programme directed new project financing to particular sectors, consistent with the goals of the five-year plans. For example, large portions of the FY 1988 Annual Development Programme were earmarked for power projects (17.5 percent of expenditures), water resources development (11 percent), and infrastructure (23.4 percent). Looked at from another perspective, the FY 1988 program called for overall expenditures 11.3 percent higher than the previous year, but certain sectors were to receive much greater increases than the average: agriculture, 40.7 percent; rural development, 32.3 percent; water resources, 26.5 percent; health, 28.8 percent; family planning, 23.1 percent; education, 33.6 percent; and oil, gas, and natural resources, 26.5 percent. Since independence these trends changed annually because demands of particular projects absorbed disproportionate amounts of capital and because some sectors were more capital intensive than others.

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