District budget from next fiscal year likely: Muhith

Posted by BankInfo on Sun, Dec 09 2012 05:34 am

The country may see model district budgets from the next fiscal year to help the local people understand about their development activities, according to Finance Minister AMA Muhith.

“I had proposed in the very first year that we should have budget for every district, but we've not been able to get it. I hope from the next year, we'll have at least model district budgets,” he said.

Muhith spoke at a seminar on medium-term budget framework (MTBF) at the city's Ruposhi Bangla Hotel.

He said if there is district budget, at lest local people can understand what development programmes are undertaken for their areas.

Finance Division of the finance ministry organised the seminar on "Deepening medium term budget framework" where Cabinet Secretary Mosharraf Hossain Bhuyian, Finance Secretary Fazle Kabir were also present.

About the failure of adopting district budget, Muhith said the government could not do much about that because of the current accounting system which did not provide any element for accounting by the district. “But, now it has been introduced in the country.”

There should be decentralisation of power from Dhaka, he said. "Our constitution wants it and it was in the constitution of 1959 and 60, but, I must say, politically we don't want it,” Muhith said.

“This is not a matter of this party or that party. The power is supposed to be delivered to the local government, not to be devolved. If power is delivered, it can be taken back any time.”

About the World Bank (WB), the minister said the global lender does not adjust itself with innovations. “Many new ideas were not initially supported by the World Bank.”

Citing his bureaucratic experiences, Muhith said the government once had moved to prepare a new Trade and Industrial Policy and also Water Resource Planning Organisation, but the World Bank did not support it. “But UNDP and other donor agencies supported those.”

The WB later came up and took the credit for it. “As a government officer at that time, I had registered a protest against the leading donor agency's such claim.”

Muhith said there should be a number of portfolio projects in the hands of the Planning Commission from which it can choose the best ones.

He said every project should have a feasibility study which will determine its selection.

About the MTBF, the minister said this new budgetary planning was introduced in 2004 when as a member of the opposition party, Awami League, he supported the move.

Muhith said MTBF should be on multiyear basis for the sake of its implementation in a proper manner.

News: The Daily Star/Bangladesh/9th-Dec-12

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