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Business Session I: Business Session I: Development Strategies, Development Strategies, Governance and Human Governance and Human Development Development General Economics Division (GED) General Economics Division (GED) Planning Commission Planning Commission Government of the People’s Republic of Bangladesh

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Page 1: Business Session I: Development Strategies, Governance and Human Development General Economics Division (GED) Planning Commission Government of the People’s

Business Session I: Business Session I:

Development Strategies, Governance Development Strategies, Governance and Human Developmentand Human Development

General Economics Division (GED)General Economics Division (GED)Planning Commission Planning Commission

Government of the People’s Republic of Bangladesh

Page 2: Business Session I: Development Strategies, Governance and Human Development General Economics Division (GED) Planning Commission Government of the People’s

22GED

Development Vision of the Govt.Development Vision of the Govt.

The government has adopted a long term vision for the The government has adopted a long term vision for the development of the country that will be reflected in the long development of the country that will be reflected in the long term Perspective Plan (2010-2021). The Perspective Plan has term Perspective Plan (2010-2021). The Perspective Plan has some specific objectives: some specific objectives:

Eliminate illiteracy by 2014;Eliminate illiteracy by 2014; Attain cent percent enrolment in the 12th class by 2021 with Attain cent percent enrolment in the 12th class by 2021 with

gender parity;gender parity; Reduce poverty to 15% or less by 2021;Reduce poverty to 15% or less by 2021; Strengthen IT to establish a digital Bangladesh;Strengthen IT to establish a digital Bangladesh; Emphasise energy availability to provide per capita energy Emphasise energy availability to provide per capita energy

consumption of about 600 kWh by 2021;consumption of about 600 kWh by 2021; The nation wants to be a prosperous middle income country by The nation wants to be a prosperous middle income country by

20212021

Page 3: Business Session I: Development Strategies, Governance and Human Development General Economics Division (GED) Planning Commission Government of the People’s

33GED

Sixth Five Year Plan (2011-15)Sixth Five Year Plan (2011-15)

This Plan would emphasise: This Plan would emphasise: Accelerated Economic Growth; Accelerated Economic Growth; Employment Creation;Employment Creation; Universal Social Protection for the Hardcore Universal Social Protection for the Hardcore

Poor; Poor; Role of Market, State & Community to be Role of Market, State & Community to be

harmonized; harmonized; PPP to be encouraged to invigorate private PPP to be encouraged to invigorate private

investment; investment; Regional and Sub-Regional Connectivity for Regional and Sub-Regional Connectivity for

making Bangladesh an open economy; making Bangladesh an open economy; Gender Responsive Plan; Gender Responsive Plan;

Page 4: Business Session I: Development Strategies, Governance and Human Development General Economics Division (GED) Planning Commission Government of the People’s

44GED

Sixth Five Year Plan (contd)Sixth Five Year Plan (contd) Technology base to be strengthened for Technology base to be strengthened for

‘Digital Bangladesh’; ‘Digital Bangladesh’; Human Resources Development will receive Human Resources Development will receive

top most priority; top most priority; Environment and Climate Change adaptation Environment and Climate Change adaptation

mechanism to be ensured;mechanism to be ensured; Good Governance, Human Rights and Good Governance, Human Rights and

Democratic Polity to be ensured;Democratic Polity to be ensured; Least-Cost National Security systems to be Least-Cost National Security systems to be

adopted; adopted; Effective Implementation and Monitoring will Effective Implementation and Monitoring will

receive priority.receive priority.

Page 5: Business Session I: Development Strategies, Governance and Human Development General Economics Division (GED) Planning Commission Government of the People’s

55GED

Planned Development: Perspective Planned Development: Perspective Plan, SFYP, PRSP II (in vogue)Plan, SFYP, PRSP II (in vogue)

For realizing the Vision, the government would For realizing the Vision, the government would start implementation of Sixth Five Year Plan start implementation of Sixth Five Year Plan (2011-2015) from July 2010 for balanced (2011-2015) from July 2010 for balanced development;development;

The present NSAPR II shall remain in force until The present NSAPR II shall remain in force until FY11; FY11;

The time frame for MTBF (medium term budget The time frame for MTBF (medium term budget framework) shall be extended from three to five framework) shall be extended from three to five years to match with the Five Year Plan process; years to match with the Five Year Plan process;

MTBF shall ensure efficient use of public MTBF shall ensure efficient use of public resources and transparency as well as link resources and transparency as well as link budgetary process as an instrument for realizing budgetary process as an instrument for realizing policy objectives.policy objectives.

Page 6: Business Session I: Development Strategies, Governance and Human Development General Economics Division (GED) Planning Commission Government of the People’s

66GED

Poverty Reduction Strategy Paper Poverty Reduction Strategy Paper (PRSP)(PRSP)

PRSP II completely a homegrown PRSP II completely a homegrown document owned by the government; document owned by the government;

The Revised NSAPR II (The Revised NSAPR II (Steps Towards Steps Towards Change:Change: NSAPR II FY: 2009-11) reflects AL NSAPR II FY: 2009-11) reflects AL led Government’s development vision in led Government’s development vision in terms of poverty reduction, economic terms of poverty reduction, economic growth and other socio-economic goals.growth and other socio-economic goals.

GED

Page 7: Business Session I: Development Strategies, Governance and Human Development General Economics Division (GED) Planning Commission Government of the People’s

77GED

Revised NSAPR II: Five Priority AreasRevised NSAPR II: Five Priority Areas (Medium term action in the light of long term vision) (Medium term action in the light of long term vision) are:are:

1.1. maintenance of macroeconomic stability and maintenance of macroeconomic stability and stabilising commodity prices (in the face of global stabilising commodity prices (in the face of global economic meltdown); economic meltdown);

2.2. continue effective actions against corruption; continue effective actions against corruption;

3.3. ensure adequacy of energy and power ;ensure adequacy of energy and power ;

4.4. elimination of poverty and inequality; and elimination of poverty and inequality; and

5.5. establishment of good governance at every tiers of establishment of good governance at every tiers of the Government.the Government.

Page 8: Business Session I: Development Strategies, Governance and Human Development General Economics Division (GED) Planning Commission Government of the People’s

88GED

Achievements:Achievements:Macroeconomic stabilityMacroeconomic stability

GDP growth has been steadily increasing and reached GDP growth has been steadily increasing and reached over 6 percent;over 6 percent;

National saving (32.4% of GDP) is 7-8 percentage points National saving (32.4% of GDP) is 7-8 percentage points higher than aggregate investment (24.6% of GDP);higher than aggregate investment (24.6% of GDP);

Current account balance is higher since last year which is Current account balance is higher since last year which is 2.4% of GDP;2.4% of GDP;

Foreign reserve is increasing and exceeded US$ 10 Foreign reserve is increasing and exceeded US$ 10 billion;billion;

Total remittance receipts rose by 22.4%;Total remittance receipts rose by 22.4%; The per capita GDP exceeds US$ 600;The per capita GDP exceeds US$ 600; Bangladesh economy withstood the global financial crisis Bangladesh economy withstood the global financial crisis

effectively showing strong resilience and inner strength.effectively showing strong resilience and inner strength.

Page 9: Business Session I: Development Strategies, Governance and Human Development General Economics Division (GED) Planning Commission Government of the People’s

99GED

Progress in poverty reductionProgress in poverty reduction The national head count index of poverty measured by the The national head count index of poverty measured by the

upper poverty line declined from 56.6 percent in 1991-92 to upper poverty line declined from 56.6 percent in 1991-92 to 40.0 percent in 2005;40.0 percent in 2005;

The poverty has been estimated at 38.0 percent in 2008;The poverty has been estimated at 38.0 percent in 2008;

Cash transfers programme, Food security programme, Cash transfers programme, Food security programme, Housing programme for landless or homeless, special Housing programme for landless or homeless, special programmes for poverty alleviation and micro-credit programmes for poverty alleviation and micro-credit programmes for self-employment are doubled;programmes for self-employment are doubled;

All indicators like life expectancy at birth (66.6 year), infant All indicators like life expectancy at birth (66.6 year), infant mortality rate (43 per thousand), population having access mortality rate (43 per thousand), population having access to drinking water (97.8%), and adult literacy rate (56.3%) to drinking water (97.8%), and adult literacy rate (56.3%) have shown significant improvements. have shown significant improvements.

Page 10: Business Session I: Development Strategies, Governance and Human Development General Economics Division (GED) Planning Commission Government of the People’s

1010GED

Progress in achieving MDGs particularly Progress in achieving MDGs particularly in health and educationin health and education

Bangladesh has successfully achieved gender parity in Bangladesh has successfully achieved gender parity in primary and secondary education; primary and secondary education;

The country is on track to achieve the targets of halving The country is on track to achieve the targets of halving the proportion of people living below the poverty line;the proportion of people living below the poverty line;

The estimated poverty level in 2015 would be less than The estimated poverty level in 2015 would be less than 30 percent, equal to the MDG target;30 percent, equal to the MDG target;

The prevalence of underweight children at the national The prevalence of underweight children at the national level will be 36.5 percent in 2015 (MDG target 33%);level will be 36.5 percent in 2015 (MDG target 33%);

Complete coverage in primary enrolment will be Complete coverage in primary enrolment will be achieved within 2011; achieved within 2011;

The under-five mortality rate (60 per thousand life The under-five mortality rate (60 per thousand life birth in 2007) will reach even below the target (48 per birth in 2007) will reach even below the target (48 per thousand) within 2010.thousand) within 2010.

Page 11: Business Session I: Development Strategies, Governance and Human Development General Economics Division (GED) Planning Commission Government of the People’s

1111GED

Reforms in governanceReforms in governance Judiciary has been separated from the executive branch of the Judiciary has been separated from the executive branch of the

government; government; The Anti Corruption Commission has been reconstituted and made The Anti Corruption Commission has been reconstituted and made

independent; independent; The Election Commission has been enjoying the independent status; The Election Commission has been enjoying the independent status;

The Right to Information Act 2009 has been passed in the The Right to Information Act 2009 has been passed in the

parliament;parliament; An independent Information Commission has been constituted; An independent Information Commission has been constituted; In a bid to strengthening the local government system, Upazila In a bid to strengthening the local government system, Upazila

Parishad Election was held in 2009 after two decades of non-Parishad Election was held in 2009 after two decades of non-functioning and other local council elections will be held in 2010; functioning and other local council elections will be held in 2010;

The Government has promulgated a new law titled’ Public Money & Budget The Government has promulgated a new law titled’ Public Money & Budget Management Act- 2009’ to ensure accountability to the Parliament.Management Act- 2009’ to ensure accountability to the Parliament.

Page 12: Business Session I: Development Strategies, Governance and Human Development General Economics Division (GED) Planning Commission Government of the People’s

1212GED

Promoting Gender EqualityPromoting Gender Equality

Government introduced quota system in the Government introduced quota system in the Parliament and in the government services;Parliament and in the government services;

Gender responsive budget preparation system has Gender responsive budget preparation system has been introduced through MTBF to monitor poverty been introduced through MTBF to monitor poverty reduction and their development;reduction and their development;

The number of reserved seats of women in the The number of reserved seats of women in the parliament has been increased to 45 from 30;parliament has been increased to 45 from 30;

Bangladesh has already achieved gender parity in Bangladesh has already achieved gender parity in primary and secondary education at the national primary and secondary education at the national level.level.

Page 13: Business Session I: Development Strategies, Governance and Human Development General Economics Division (GED) Planning Commission Government of the People’s

1313GED

Challenges Ahead:Challenges Ahead:Enabling macroeconomic environment for Enabling macroeconomic environment for

pro-poor growthpro-poor growth Annual GDP growth is projected to grow to 6.0% in Annual GDP growth is projected to grow to 6.0% in

FY10, 6.7% in FY11, and 7.2% in FY12;FY10, 6.7% in FY11, and 7.2% in FY12;

Inflation rate is projected to decline during the NSAPR II Inflation rate is projected to decline during the NSAPR II period, investment/GDP is projected to improve, period, investment/GDP is projected to improve, revenue/GDP and government expenditure/GDP are revenue/GDP and government expenditure/GDP are projected to improve in FY10. Budget deficit will be projected to improve in FY10. Budget deficit will be contained within 5% of GDP;contained within 5% of GDP;

However, the challenge would be to raise and However, the challenge would be to raise and consolidate domestic resource mobilization efforts, consolidate domestic resource mobilization efforts, increase tax GDP ratio, increase private sector increase tax GDP ratio, increase private sector confidence shrunk as a consequence of on-going global confidence shrunk as a consequence of on-going global economic downturn and power shortage;economic downturn and power shortage;

Expansion of tax base and streamline the banking Expansion of tax base and streamline the banking system to generate domestic resources for system to generate domestic resources for development financing. development financing.

Page 14: Business Session I: Development Strategies, Governance and Human Development General Economics Division (GED) Planning Commission Government of the People’s

1414GED

Social Protection for the VulnerableSocial Protection for the Vulnerable

SSNP has been envisioned in the perspective plan SSNP has been envisioned in the perspective plan (2010-2021) to protect the poor and disadvantage (2010-2021) to protect the poor and disadvantage group from social evils, economic hardship and group from social evils, economic hardship and natural shocks;natural shocks;

The NSAPR II has put social protection of the The NSAPR II has put social protection of the vulnerable at one of the top of its agenda; vulnerable at one of the top of its agenda;

For sustaining the government’s programmes in For sustaining the government’s programmes in the long-run generous supports from the the long-run generous supports from the development partners is needed.development partners is needed.

Page 15: Business Session I: Development Strategies, Governance and Human Development General Economics Division (GED) Planning Commission Government of the People’s

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Development of Human resourcesDevelopment of Human resources

Establish a Knowledge-based society;Establish a Knowledge-based society;

In the revised NSAPR II, 582.30 billion taka or US $ 8.44 In the revised NSAPR II, 582.30 billion taka or US $ 8.44 billion (20.69% of total) is estimated for Education, training billion (20.69% of total) is estimated for Education, training and research making this as a number one priority;and research making this as a number one priority;

Ensure quality health, nutrition and family welfare services Ensure quality health, nutrition and family welfare services which are affordable, attainable and acceptable to the which are affordable, attainable and acceptable to the people;people;

The government plans to establish 18,000 Community The government plans to establish 18,000 Community Clinics (CCs) in phases to ensure access of the poor to public Clinics (CCs) in phases to ensure access of the poor to public health care services;health care services;

The Government has taken improving access and quality of The Government has taken improving access and quality of education, health, nutrition and social protection services for education, health, nutrition and social protection services for all vulnerable groups though is a challenge.all vulnerable groups though is a challenge.

Page 16: Business Session I: Development Strategies, Governance and Human Development General Economics Division (GED) Planning Commission Government of the People’s

1616GED

Promoting good governancePromoting good governance Making parliamentary process effective;Making parliamentary process effective;

Reorganization of civil service and strengthening the public Reorganization of civil service and strengthening the public service system based on merit and performance;service system based on merit and performance;

Reforming the legal and judicial system to ensure judicial help Reforming the legal and judicial system to ensure judicial help for the poor and women;for the poor and women;

Rule of Law to be firmly established;Rule of Law to be firmly established; Combating corruption, ensuring human rights, accessing Combating corruption, ensuring human rights, accessing

information, improving project implementation capacity;information, improving project implementation capacity;

Initiating some reforms particularly in decentralizing Initiating some reforms particularly in decentralizing government to be more responsive to citizen’s priorities and government to be more responsive to citizen’s priorities and needs will be attempted though challenging;needs will be attempted though challenging;

Improve public services delivery through GO-NGO collaboration Improve public services delivery through GO-NGO collaboration and ensure public sector performance and accountability. and ensure public sector performance and accountability.

Page 17: Business Session I: Development Strategies, Governance and Human Development General Economics Division (GED) Planning Commission Government of the People’s

1717GED

Enhancing productivity and efficiency Enhancing productivity and efficiency through science and technologythrough science and technology

The quality of life of people of the The quality of life of people of the disadvantaged groups will be improved disadvantaged groups will be improved through enhancing quality of education through enhancing quality of education and health care by innovative and health care by innovative application of ICT;application of ICT;

Enhancing productivity in agriculture Enhancing productivity in agriculture through the application of through the application of biotechnology. biotechnology.

Page 18: Business Session I: Development Strategies, Governance and Human Development General Economics Division (GED) Planning Commission Government of the People’s

1818GED

Thoughts on Way forwardThoughts on Way forward Ensure full implementation of the NSAPR-II and SFYP to accelerate Ensure full implementation of the NSAPR-II and SFYP to accelerate

growth and reduce poverty;growth and reduce poverty; Increasing revenues and investment for buttressing development Increasing revenues and investment for buttressing development

and growth;and growth; Partnering with the private sector to realize full potential of the Partnering with the private sector to realize full potential of the

economy;economy; Making public expenditure more effective through improvements in Making public expenditure more effective through improvements in

budgeting, budget-planning linkages and through aid effectiveness;budgeting, budget-planning linkages and through aid effectiveness; Increasing Regional cooperation especially in cross-border trade, Increasing Regional cooperation especially in cross-border trade,

transport and energy;transport and energy; Building a better governed Bangladesh through an improved Building a better governed Bangladesh through an improved

accountability framework and reforms to civil service which rewards accountability framework and reforms to civil service which rewards merit and performance, and e-governance;merit and performance, and e-governance;

Bringing ‘services to people’s doorsteps’ by decentralizing services, Bringing ‘services to people’s doorsteps’ by decentralizing services, strengthening local government and enhancing local accountability strengthening local government and enhancing local accountability mechanisms;mechanisms;

Improve access to and utilization of quality education, health, Improve access to and utilization of quality education, health, nutrition and social protection services;nutrition and social protection services;

Implementing Bangladesh Climate Changes Strategy and Action Implementing Bangladesh Climate Changes Strategy and Action Plan.Plan.

Page 19: Business Session I: Development Strategies, Governance and Human Development General Economics Division (GED) Planning Commission Government of the People’s

1919GED

Role of the Development Partners in Facing Global Role of the Development Partners in Facing Global Financial CrisisFinancial Crisis

Adverse effect of global financial crisis is evident as our Adverse effect of global financial crisis is evident as our export earning from readymade garments, frozen foods, jute export earning from readymade garments, frozen foods, jute and jute goods and leather are showing downward trend, and jute goods and leather are showing downward trend, and likely to be severely hit, if the financial crisis prolongs; and likely to be severely hit, if the financial crisis prolongs;

Contraction of employment opportunities globally, Contraction of employment opportunities globally, particularly in the Middle east may hit our remittance flow;particularly in the Middle east may hit our remittance flow;

Bangladesh’s main export item of readymade garments are Bangladesh’s main export item of readymade garments are facing uneven competition in the US and European markets. facing uneven competition in the US and European markets. As least developed country Bangladesh should be granted As least developed country Bangladesh should be granted duty free and quota free access to the US market, and rule duty free and quota free access to the US market, and rule of origin criterion may be relaxed for entry into European of origin criterion may be relaxed for entry into European market; market;

Page 20: Business Session I: Development Strategies, Governance and Human Development General Economics Division (GED) Planning Commission Government of the People’s

2020GED

Facing Global Crises (Contd.)Facing Global Crises (Contd.)

Bangladesh should receive enhanced support Bangladesh should receive enhanced support under Aid for Trade instrument.under Aid for Trade instrument.

In order to address these challenges we need strong In order to address these challenges we need strong support from our development partners in the form of support from our development partners in the form of direct investment, unhindered market access for our direct investment, unhindered market access for our exports, simplification and relaxation of rules of origin, exports, simplification and relaxation of rules of origin, capacity building in trade and investment for creating capacity building in trade and investment for creating domestic demand. Bangladesh needs more aid in domestic demand. Bangladesh needs more aid in grants to develop human resources and improve grants to develop human resources and improve educational standards.educational standards.

Page 21: Business Session I: Development Strategies, Governance and Human Development General Economics Division (GED) Planning Commission Government of the People’s

2121GED

Macroeconomic Framework During Macroeconomic Framework During NSAPR II PeriodNSAPR II Period

2007-082007-08

Actual Actual 2008-09 2008-09

ProvisionalProvisional/ Actual / Actual

2009-10 2009-10 Projected Projected

2010-11 2010-11 Projected Projected

2011-12 2011-12 Projected Projected

Real GDP Growth (%)Real GDP Growth (%) 6.26.2 5.95.9 6.06.0 6.76.7 7.27.2

CPI InflationCPI Inflation 9.99.9 6.76.7 6.56.5 6.16.1 6.06.0

Gross Domestic Savings Gross Domestic Savings

(% of GDP) (% of GDP) 20.320.3 20.020.0 20.520.5 20.920.9 21.321.3

Gross Domestic Investment Gross Domestic Investment

(% of GDP)(% of GDP)24.224.2 24.224.2 24.624.6 26.126.1 27.427.4

Total Revenue (% of GDP)Total Revenue (% of GDP) 10.810.8 10.410.4 11.411.4 11.911.9 12.212.2

Total Expenditure (% of GDP)Total Expenditure (% of GDP) 15.915.9 13.813.8 16.516.5 16.916.9 17.017.0

Domestic Borrowing (% of GDP)Domestic Borrowing (% of GDP) 3.53.5 2.82.8 2.72.7 2.72.7 2.62.6

External Borrowing (% of GDP) External Borrowing (% of GDP) 1.61.6 0.60.6 2.42.4 2.32.3 2.22.2

Total Borrowing (% of GDP)Total Borrowing (% of GDP) 5.15.1 3.43.4 5.15.1 5.05.0 4.84.8

Page 22: Business Session I: Development Strategies, Governance and Human Development General Economics Division (GED) Planning Commission Government of the People’s

Indicative Costs of Achieving Goals and Indicative Costs of Achieving Goals and Targets set out in NSAPR II (Revised)Targets set out in NSAPR II (Revised)

At the macro level, expenditure projection from the At the macro level, expenditure projection from the

medium term budgetary framework was taken into medium term budgetary framework was taken into consideration. At the micro level, the cost of implementing consideration. At the micro level, the cost of implementing the activities was taken into consideration; the activities was taken into consideration;

These costs are indicative and were identified in These costs are indicative and were identified in consultation with the relevant stakeholders in the consultation with the relevant stakeholders in the ministries/agencies; ministries/agencies;

Effort was also made not to overestimate implementation Effort was also made not to overestimate implementation needs.needs.

GED

Page 23: Business Session I: Development Strategies, Governance and Human Development General Economics Division (GED) Planning Commission Government of the People’s

2323GED

Indicative Cost of NSAPR IIIndicative Cost of NSAPR II by Thematic by Thematic AreasAreas

Thematic Area (Strategic Blocks & Thematic Area (Strategic Blocks & Supporting strategies) Supporting strategies)

Cost in billion Tk. at Cost in billion Tk. at FY 2008 pricesFY 2008 prices

% of Total % of Total CostCost

1. Macroeconomic Environment for Pro-poor 1. Macroeconomic Environment for Pro-poor Economic GrowthEconomic Growth

31.4331.43 1.121.12

2. Resource Mobilization 2. Resource Mobilization 29.7529.75 1.061.06

33. Agricultural Growth towards Poverty Reduction

180.00180.00 6.39

4. Water Resources Development and 4. Water Resources Development and Management Management

42.4942.49 1.511.51

5. SMEs Development5. SMEs Development 14.0414.04 0.500.50

6. Promoting Decent Employment6. Promoting Decent Employment 38.1038.10 1.351.35

7. Private Sector Development 7. Private Sector Development 54.7654.76 1.951.95

8. Land Use Policy and Management8. Land Use Policy and Management 3.783.78 0.130.13

9. Housing Development9. Housing Development 80.8180.81 2.872.87

10. 10. Infrastructure development including power, energy & Communications (2)

536.66536.66 19.07

Page 24: Business Session I: Development Strategies, Governance and Human Development General Economics Division (GED) Planning Commission Government of the People’s

2424GED

Indicative Cost of NSAPR II (contd.)Indicative Cost of NSAPR II (contd.)

11. Social Protection (SSNPs, FS, DM, Micro-11. Social Protection (SSNPs, FS, DM, Micro-Credit and RNFA) (3)Credit and RNFA) (3)

319.39319.39 11.3511.35

12. 12. Education, Training & Research (1) (1) 582.30582.30 20.69

13. Health, Nutrition and Family Planning13. Health, Nutrition and Family Planning 207.94207.94 7.39

14. Social Inclusion and Empowerment 14. Social Inclusion and Empowerment (Women’s and Children’s advancement, (Women’s and Children’s advancement, Indigenous people, People with disability, Indigenous people, People with disability, disadvantaged and Extreme poor groups) disadvantaged and Extreme poor groups)

48.6648.66 1.731.73

15. Promoting Good Governance & Public Services (4) (4)

300.95300.95 10.69

16. Utility Services Delivery including water, 16. Utility Services Delivery including water, sanitation & urban services sanitation & urban services

168.00168.00 5.975.97

17. Caring for Environment and tackling 17. Caring for Environment and tackling Climate ChangeClimate Change

125.03125.03 4.444.44

18. Technology Policy including ICT and Bio-18. Technology Policy including ICT and Bio-technologytechnology

50.7250.72 1.801.80

Total Total 2814.812814.81 100.00100.00

Page 25: Business Session I: Development Strategies, Governance and Human Development General Economics Division (GED) Planning Commission Government of the People’s

2525GED

Indicative Costs of NSAPR II: Resource GapIndicative Costs of NSAPR II: Resource Gap

Costs for NSAPR II Period Costs for NSAPR II Period Total (FY09-FY11) Total (FY09-FY11) in FY08 Pricesin FY08 Prices

A. Resource needs for NSAPR II (billion Tk)A. Resource needs for NSAPR II (billion Tk) 2814.81 2814.81

B. Non Discretionary Expenditure (billion Tk) B. Non Discretionary Expenditure (billion Tk) 642.59642.59

B1: Interest PaymentB1: Interest Payment 425.59425.59

B2: Defence ExpenditureB2: Defence Expenditure 217.00 217.00

C. Total expenditure needs (A+B) C. Total expenditure needs (A+B) 3457.403457.40

D. Total Domestic resources available (billion Tk) D. Total Domestic resources available (billion Tk) 2582.562582.56

D1: Total RevenueD1: Total Revenue 2077.942077.94

D2: Domestic borrowing D2: Domestic borrowing 504.62504.62

E. Domestic Resource Gap (C-D) (billion Tk)E. Domestic Resource Gap (C-D) (billion Tk) 874.84874.84

F. Domestic Resource Gap in billion USD F. Domestic Resource Gap in billion USD 12.5012.50

GED

Page 26: Business Session I: Development Strategies, Governance and Human Development General Economics Division (GED) Planning Commission Government of the People’s

2626GED

Meeting Resource GapMeeting Resource Gap Resource requirement (US$ 4. 166 billion/year) Resource requirement (US$ 4. 166 billion/year)

exceeds the usual level of foreign assistance (US$ exceeds the usual level of foreign assistance (US$ 2.00–2.5 billion) that we receive from our 2.00–2.5 billion) that we receive from our Development Partners; Development Partners;

Government will continue its efforts to increase tax-Government will continue its efforts to increase tax-GDP ratio by expanding the tax net; GDP ratio by expanding the tax net;

The revenue administration system would be The revenue administration system would be overhauled, restructured and broadened to raise overhauled, restructured and broadened to raise revenue flow; revenue flow;

Development Partners of Bangladesh should increase Development Partners of Bangladesh should increase their development assistance to met the projected their development assistance to met the projected resource gap in order to meet her development resource gap in order to meet her development challenge. challenge.

Financial Sector Reform will continue and enabling Financial Sector Reform will continue and enabling environment will be created to encourage PPP and environment will be created to encourage PPP and FDI. FDI.

Page 27: Business Session I: Development Strategies, Governance and Human Development General Economics Division (GED) Planning Commission Government of the People’s

2727GED

Monitoring NSAPR II Activities and Monitoring NSAPR II Activities and ImplementationImplementation

Policy Matrices are developed for all the 18 thematic Policy Matrices are developed for all the 18 thematic areas so that concerned Ministries can develop Action areas so that concerned Ministries can develop Action Plans for their implementation;Plans for their implementation;

A list of Indicators for all the 18 thematic areas are A list of Indicators for all the 18 thematic areas are also developed for implementation monitoring and also developed for implementation monitoring and evaluation.evaluation.

Capacity building will be necessary in all institutions Capacity building will be necessary in all institutions involved in the implementation monitoring and involved in the implementation monitoring and evaluation task and for this:evaluation task and for this:– Capacity of BBS to generate data will be strengthenedCapacity of BBS to generate data will be strengthened– Planning Wings/Units in all the Ministries/Divisions/ Planning Wings/Units in all the Ministries/Divisions/

Agencies will be strengthened;Agencies will be strengthened; Capacity of GED/Planning Commission will be Capacity of GED/Planning Commission will be

strengthened for NSAPR II implementation and strengthened for NSAPR II implementation and monitoringmonitoring.

Page 28: Business Session I: Development Strategies, Governance and Human Development General Economics Division (GED) Planning Commission Government of the People’s

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