Bangladesh suspends funds for 'less important' projects as austerity drive ramps up

[Homo Sapiens]

Bangladesh suspends funds for 'less important' projects as austerity drive ramps up​

Staff Correspondent, bdnews24.com
Published: 04 Jul 2022 03:15 PM BdST Updated: 04 Jul 2022 03:15 PM BdST

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The government has reduced its allocation for the Annual Development Programme and is no longer releasing funds for 'less important' projects as it expands austerity measures.​

The Ministry of Finance has categorised ongoing projects into three categories by importance. Projects in the third, or 'C' category, will not receive additional funding for the time being.

The decision was announced in a circular issued by the budget branch of the ministry on Sunday. A separate circular also suspended the purchase of new cars and an allowance for attending meetings for all types of government institutions.

The circular titled 'Prioritisation and Sustainable Implementation of Annual Development Programme Projects for FY 2022-23' states that in the current global economic situation, projects have been categorised into A, B and C according to priority under the Annual Development Programme to ensure proper utilization of limited resources.

The ‘A’ category projects of ministries, departments and other institutions and their subordinate departments and agencies will continue to be implemented as usual.

For the 'B' category, less than 75 per cent of government funding will be released and less than 75 per cent can be spent.
“The release of funds for 'C' category projects will be suspended for now. However, the concerned ministries, departments and other institutions may, as required, reallocate the funds allocated for the 'C' category projects (with the prior approval of the Planning Commission and the Finance Department where applicable) to the 'A' category projects," the circular said.

The ministry said the notice would take effect immediately with the approval of the relevant authorities.

Though the effects of the COVID pandemic have diminished a bit, the global economy slowed down last February because of Russia's invasion of Ukraine. A number of factors, including the depreciation of the taka against the dollar, increases in the cost of imports, and increases in the price of raw materials, have led to inflation and rising cost of living.

In these circumstances, the government has taken a number of measures to cut costs since last June. Decisions have already been made to suspend foreign tours, discourage the import of luxury goods, increase LC margins on imports, and bring back money laundered abroad.

Bangladesh suspends funds for 'less important' projects as austerity drive ramps up

The government has reduced its allocation for the Annual Development Programme and is no longer releasing funds for 'less important' projects as it expands austerity measures.

bdnews24.com

 

[Protest_again]

Economic leader of South Asia for you.

 

[mb444]

Immediately belt tightening is necessary to withstand the coming global recession.

Whilst the fiscal deficit has been mostly caused by capital purchases that in turn will provide greater return...the point is we do have a large deficit. Thankfully our other economic fundamentals are solid. We will overcome it but there will be pain.

 

[Protest_again]

Immediately belt tightening is necessary to withstand the coming global recession.

Whilst the fiscal deficit has been mostly caused by capital purchases that in turn will provide greater return...the point is we do have a large deficit. Thankfully our other economic fundamentals are solid. We will overcome it but there will be pain.

What other economic fundamentals? budget deficit? Or Revenue to GDP ratio?

 

[Bilal9]

Economic leader of South Asia for you.

Everyone has to tighten their belt... including those in India. Indian belt-tightening started far earlier than ours.

Indians tighten belts as Ukraine war drives up prices of necessities

Many Indians are cutting down on fried food and even vegetables as the Ukraine war inflates the prices of items from edible oils to fuel, threatening a sputtering recovery in the consumption-based economy after two years battling COVID-19.

www.reuters.com

 

[Protest_again]

Everyone has to tighten their belt... including those in India. Indian belt-tightening started far earlier than ours.

Indians tighten belts as Ukraine war drives up prices of necessities

Many Indians are cutting down on fried food and even vegetables as the Ukraine war inflates the prices of items from edible oils to fuel, threatening a sputtering recovery in the consumption-based economy after two years battling COVID-19.

www.reuters.com

Indians cutting down on eating fried foods as edible oil got expensive is completely different to GOB enforcing power cuts or approaching IMF to cover Budget deficits and shore up forex reserves.

GoI will not stop importing edible oils or petrol that would effect our growth. They will leave it to individual to make the choice based on their purse.

But I know this will all go over your stupid head. So never mind.

 

[Bilal9]

Indians cutting down on eating fried foods as edible oil got expensive is completely different to GOB enforcing power cuts or approaching IMF to cover Budget deficits and shore up forex reserves.

GoI will not stop importing edible oils or petrol that would effect our growth. They will leave it to individual to make the choice based on their purse.

But I know this will all go over your stupid head. So never mind.

Learn some manners....

They are not cutting down on oil, they are NOT buying oil - costs too much.... BOILING Vegetables. Capische??

Modi's Endeya, the supapawa.

You remind me of this retard who grew up not knowing manners. Terminally rude.

He had to be given backhanded tight slaps every other sentence because comprehension was limited, like yours.

Right treatment....

 

[Protest_again]

Learn some manners....

They are not cutting down on oil, they are NOT buying oil - costs too much.... BOILING Vegetables. Capische??

Modi's Endeya, the supapawa.

You remind me of this retard who grew up not knowing manners. Terminally rude.

He had to be given backhanded tight slaps every other sentence because comprehension was limited, like yours.

Right treatment....

Lol. Like I fuckin care about your approval. I speak like that to retards.

 

[UKBengali]

Best to ignore the resident Indian troll on this thread.

 

[ayesha.a]

Economic leader of South Asia for you.

They are doing rather well, compared to other South Asian countries.

 

[jamahir]

Economic leader of South Asia for you.

They are doing rather well, compared to other South Asian countries.

Protest_again, today's newspapers in India speak of domestic gas cylinders having had their price increased by 50 rupees. And what Ayesha is saying is true.

GoI will not stop importing edible oils or petrol that would effect our growth. They will leave it to individual to make the choice based on their purse.

Growth ? What does that mean ? And how wonderful of you to defend a system which doesn't provide basic necessities to the citizens while at the same time extorts income tax, house tax, water tax, GST, road tax and other sorts of taxes.

Do Ambani and Adani look at their purse when splurging on their grand breakfast, lunch and party dinners ?

 

[Protest_again]

Protest_again, today's newspapers in India speak of domestic gas cylinders having had their price increased by 50 rupees. And what Ayesha is saying is true.



Growth ? What does that mean ? And how wonderful of you to defend a system which doesn't provide basic necessities to the citizens while at the same time extorts income tax, house tax, water tax, GST, road tax and other sorts of taxes.

@jamahir I don't want to speak to commi/islamo lunatics. Don't ping me again.

 

[jamahir]

@jamahir I don't want to speak to commi/islamo lunatics. Don't ping me again.

Then why are you on a discussion forum ?

 

[Paitoo]

Not another boxing match please.

On topic - Austerity measures are good. At any time. Sensible corporates do it in some degree from time to time. Can't see why governments in poor countries cannot do it. It is a good way to get maximum bang for the buck and ditch useless vanity projects. Austerity as a culture is much needed in South Asia. Our babus are used to a very cushy lifestyle for very little output

 

[leonblack08]

Not another boxing match please.

On topic - Austerity measures are good. At any time. Sensible corporates do it in some degree from time to time. Can't see why governments in poor countries cannot do it. It is a good way to get maximum bang for the buck and ditch useless vanity projects. Austerity as a culture is much needed in South Asia. Our babus are used to a very cushy lifestyle for very little output

Exactly. Majority of the large companies around the world are undertaking austerity measures in anticipation of the possible recession.

For Bangladesh, such measures are needed to protect against corruption as well. Project prioritization is key and only those which add substantial value should be funded.