Dhaka, Bangladesh (BBN) – The Annual Development Program (ADP) in the current fiscal year (FY) is likely to be slashed by BDT 55 billion.
At a meeting of the resource committee with Finance Minister AMA Muhith in the chair on Saturday, the Planning Commission was informed about the cut and advised to prepare a draft ADP in line with this.
The size of the revised ADP could be BDT 405 billion for FY’12.
The finance minister reportedly told the meeting that less foreign aid and more expenditure on subsidy were the major reasons behind the slash in ADP, although the revenue earning had increased.
The meeting did not take any decision on increasing energy prices, including that of fuel, but if necessary, the prices could be hiked further during the FY’12, according to reports.
The meetings discussed that despite the ADP cut, the government borrowing from banking system might rise to BDT 250 billion from the existing target of around BDT 190 billion.
BBN/SSR/AD-26Feb12-1:05 pm (BST)