Power, energy to get Tk38,799cr allocation in budget

The power and energy sector is getting an allocation of Tk 38,799 crore in the budget for next financial year (2024-25).

The budget session is going to be held in the Jatiya Sangsad from June 5. In the upcoming budget, the power sector is getting 15.38 percent of the total allocation for the annual development programme. The total allocation for the annual development program in the upcoming budget, is Tk 2,78,288.91 crore, according to the sources from the Power Division.

The sources said the power sector is getting Tk 34,335 crore allocation this time. Of the allocation, Tk 9,988 crore will be received from the government fund, Tk 18,569 crore will be available as loan assistance for various projects, Tk 5,159 crore will come from the own financing of various power companies, and Tk 618 crore as bulk allocation in the budget.

In the current fiscal year (2023-24), the total allocation for the power sector was Tk 30,063 crore. However, if the price of dollar is considered, the allocation to the power sector is not increasing in the next financial year compared to the current year. Compared to last June, the price of the dollar has increased by at least 17 percent.

An official of the Power Division said, “We have already brought the matter to the attention of the Finance Division. Discussions were held with them about adjusting the dollar price, but it was not fruitful. The power sector has been facing problems due to the upward trend of the dollar market. Power plant construction and maintenance parts have to be imported from abroad. Due to the increased pr5ice of dollar, project costs are increasing. But the Finance Division is not coordinating.”

Till last April, the Power Division has implemented 68.29 percent of the budget allocation in the current financial year, it means, 68 percent of the budget has been used in 10 months. Questions are being raised whether it is possible to implement the remaining 32 percent of the budget in two months.

This year, the implementation of the GOB (Government of Bangladesh) allocation has been the lowest among the budget implementation. This year, GOB allocated Tk 8,076 crore for power sector. Of this, Tk 4,125 crore has been spent till April 30 which is 51.8 percent of the allocation. Project loan assistance in the budget was Tk 19,050 crore out of which 75.94 percent (Tk 14,466 crore) has been spent. Out of Tk 2,936 crore that came from project related company's own expenditure, Tk 1,937 crore (66 percent) have been spent in the.

On the other hand, Tk 4,463 crore has been allocated in the energy sector for the next financial year. Out of the total allocation, Tk 2,246 crore will come from the GOB, and Tk 1,564 crore from the organization's own funds. Apart from this, another Tk 652 crore has been allocated from the Gas Development Fund (GDF).

Energy and Mineral Resources Division is ahead in ADB implementation compared to Power Division in the current financial year. The energy division has implemented 83 percent of ADB till April 30.

In the current financial year, the energy sector was allocated Tk 3,841 crore. Out of this, Tk 1,033 crore have been spent in the GOB sector out of Tk 1,403 crore GOB allocation. ADB implementation percentage is 73.67 percent. Tk 1,565 crore was allocated from the institutions' own funds. Out of this, Tk 1,442 crore (92.15 percent) has been spent. Out of the Tk 873 crore GDF allocation, Tk 717 crore has been spent. That is, 83.14 percent has been spent.