Power, Agriculture & Communications In Budget ‘15

It goes without saying that without adequate rural development and power and communications infrastructure, that goal will remain unrealized. Hence, we look at the plans and allocations regarding three key sectors: agriculture & rurual development; power & energy; and communications infrastructure.

Power And Energy

Allocation for power and energy sector has been increased 17% for the 2014-15 fiscal year. This sector received a total allocation of TK 115.4 billion as compared to the revised allocation of TK 99.02 billion from last fiscal year. In his budget speech the Finance Minister pointed out that power generation target was re-fixed at 24,000 MW instead of 20,000 MW by 2021 considering the growing demand and increasing generation capacity. He added that steps have been taken to raise power generation capacity to 18,162 MW by 2017.

A special allocation of TK 4 billion has been kept for financing renewable energy based power plants. The Finance Minister promised that every household will get electricity within next five years. He assured that the target to achieve 100% power coverage by 2019 will be made a success through implementation of long and medium-term plans. He outlined the government’s plans in this regard for the next 5 three years:

• To take initiatives, apart from increasing domestic production, to generate and allocate power through bilateral, multilateral and regional agreements with neighboring India, Bhutan and Nepal
• To raise generation capacity to 18,162 MW of electricity by 2017
• To establish coal based power plants with a generation capacity of 1426 MW by 2017 which will shift the burden from gas which contributes to 78% of power generation in the country 
• To establish two nuclear power plants at Ruppur with a total generation capacity of 2000 MW of electricity
• To produce 800 MW of electricity by 2015 using renewable energy
• To install more than 60,000 pre-paid metres to ensure efficiency, transparency, and accountability in power management. 

Regarding the energy sector, the government has plans to enhance the capacity of BAPEX. Special emphasis will be laid on discovery of new gas and oil fields. In addition, scope of assistance and cooperation with international organisations to explore new gas and oil fields in the coastal and deep sea areas will be widened. Alongside, necessary steps will be taken to dig 21 wells in order to enhance gas generation capacity by 2015-16. Initiatives will be adopted to reduce the misuse of gas by enhancing managerial efficiency in this sector. There are plans to establish an LNG terminal and necessary infrastructure in Maheshkhali Island.

Communications Infrastructure

Separate allocations have been kept for the following communications infrastructure building priorities of the government: Padma Multipurpose Bridge; Construction of a tunnel underneath the Karnaphuli river in Chittagong; Conversion of nationally important highways into four lanes gradually; Continuation of investment to reform and modernise railways; Construction of circular rail road track around Dhaka city; Construction of the 3rd Sea port at Payra in Patuakhali; Construction of a sea port and an LNG terminal at Moheshkhali; Making Biman a profitable organisation by improving its management and enhancing the capacity of passenger transport. For the fiscal year 2014-15, the communications infrastructure sector has been allocated TK 231.36 billion.

Agriculture And Rural Development

Despite the technological advancements, agriculture still forms one of the principal sectors of our economy and essential for our overall wellbeing. The Finance Minister in his budget speech proposed an allocation of TK 90 billion for the fiscal year 2014-15. The Minister outlined the government’s plans for the next year regarding this key sector:

• Subsidies for fertilizer, seeds, irrigation and other agricultural inputs will continue
• Share-croppers will continue to be provided with collateral-free agricultural loan. Moreover, agricultural loan and input assistance will continue. In addition, a database containing all information of farmers will be established
• Agricultural Rehabilitation Assistance and Incentive Programme will continue as before
• Supply of high yielding seeds to the farmers will be increased further
• Special emphasis will be given on innovation and use of organic technology and genetic engineering
• Development of agro- based industry will be encouraged with right incentives
• Agricultural research will be given highest priority as before. Like jute, steps will be taken to decode genome sequence of other cash crops. Again, research for inventing drought, salinity and water logging resistant high yielding varieties will be intensified. Special attention will be given to minimize the adverse effect of climate change while conducting agricultural research and emphasis.

Regarding fisheries and livestock, the Finance Minister outlined the following plans of the government for the coming days:

• Programmes for increasing commercial production of egg, fish, meat, milk etc. will continue
• Ongoing integrated actions to increase the production of national fish Hilsha will continue
• The National Shrimp Policy, 2014 will be formulated as soon as possible
• Steps will be taken to ensure sustainable management of aquatic resources in the newly earned 1 lakh 11 thousand 631 square km of territorial sea at the Bay of Bengal.
• Genuine fishermen will be registered and provided with identity cards
• Cooperatives will be encouraged
• Manufacturing vaccine for domestic animals, providing veterinary treatment, developing species through artificial insemination will continue.

As for rural development, the government has plans to transform each union parishad w into a vibrant habitat with all modern civic amenities. Works are underway to connect 2051 growth centres with district headquarters. Modern education, electricity, health care, pure drinking water, sanitation, agro-based industry will be made available in rural areas that will facilitate establishment of small township and suburbs. The government is moving forward with a master plan spanning up to 2021 to develop a rural road network.

It plans to build 5000 km of new road, repair and maintain ten thousand km of pucca road, build, repair and maintain thirty thousand metres of bridges and culverts. These initiatives will widen road network coverage in rural areas from 32.15 percent to 33.80 percent. The ministry in charge of undertaking the aforementioned projects, namely the LGRD ministry, has been allocated TK 154.64 billion for the fiscal year 2014-15.