The New Nation - Internet Edition

Bdnews24, Dhaka

Bangladesh will spend Tk 2,568 billion over the next three years to fight poverty with a clear focus on farming, the finance adviser said Thursday. The National Economic Council gave the go-ahead to the second poverty reduction strategy paper (PRSP) for the period ending June 2011, to achieve a growth rate of upto 7.5 percent.

Finance and planning adviser AB Mirza Azizul Islam briefed the press after the NEC meeting chaired by chief adviser Fakhruddin Ahmed. The PRSP-2 (2008-09 to 2010-11) sets sector-wise goals, giving priority to agriculture, said the adviser. The authors of the paper also emphasise power, climate change adaptation, and takes into account rising food prices in the global market and the impact of a changed political scenario. The PRSP-2 was modelled on the first. However, the original PRSP had no targets for sector wise expenditure over its three years. "This time targets have been fixed by sector." "But about 25 percent of the total expenditure has been allocated for the agricultural sector," said Mirza Aziz. He said that the power sector would get a large portion of the pie. The authors of the new PRSP consulted a cross-section of the public, the adviser said.

Asked whether an unelected government had the jurisdiction to prepare such a long-term strategy, Azizul Islam replied: "The present caretaker government had to stay on for a longer than usual period for the interest of the nation. Formulating the new PRSP was a part of that responsibility." He added that the next elected government could always make amendments.

The new PRSP has fixed 7 percent GDP growth for fiscal year 2008-09, 7.2 percent for 2009-10 and 7.5 percent for 2010-11.

For 2008-09 the average inflation has been estimated at 9 percent, projected to come down to 7.5 percent in 2009-10 and 7 percent in 2010-11.

Total government expenditure for the period is projected to be Tk 3,190.44 billion, with a revenue target of Tk 2,559 billion. The deficit of Tk 63,094 crore ($9.01 billion) is expected to be met by development partners.