Bangla Govt plans elevated expressway by 2011

Dhaka: The government in its second PRSP has planned to construct an elevated expressway in the capital and a Dhaka-Chittagong expressway by 2011 in a bid to ease traffic congestion in the capital and to speed up communication with the port city.

The government also plans to upgrade Dhaka-Chittagong, Dhaka-Khulna, Dhaka-Sylhet, and Dhaka-Tangail highways to four lanes, and to construct the already planned Padma Bridge by 2011.

A draft of the second PRSP (Poverty Reduction Strategy Paper for 2009-2011) will be submitted to the National Economic Council meeting today, which will be chaired by the chief adviser.

The second PRSP also includes a plan to construct a ring road around the capital and a flyover across Pragati Sarani in Gulshan area.

A Tk 2,50,000 crore cost has been projected for implementing the second PRSP, at least 20 percent of which has been projected for the education sector, while 19 percent has been projected for infrastructure building, and 11 percent for the health sector.

The government has planned to set aside Tk 67,780 crore for non-discretionary expenditure including payment of interests and defence expenditure.

The projected revenue earning has been set at Tk 2,29,285 crore while domestic borrowing has been set at Tk 33,939 crore for resource mobilisation.

There is however a projected budget deficit of at least Tk 49,236 crore.

Domestic borrowing will be kept within 3 percent of GDP, while non-concessionary borrowing will be limited to 1 percent of GDP, the draft PRSP says.

'The government would not borrow from the central bank except to cope with daily cash requirements or to face problems of natural disasters, national security, or other exceptional circumstances on temporary basis,' it adds.

To increase revenue earnings, the government will extend the tax net and value added tax (VAT), and will introduce unified tax identification numbers (TIN) for income tax and VAT.

The government will also introduce public-private partnership for decentralising tax collection efforts, the draft says.

The new PRSP also plans reduction of average protective tariff to 15 percent and enhancement of revenue mobilisation efforts for reducing dependence on import taxes.

To enhance private investment, the government will take measures to make unused land available for creating industrial or economic zones, provide incentives for private industrial estates, and will acquire land to handover to potential investors through the Board of Investment for setting up new industrial or special economic zones, or for industrial parks.

The government in the second draft PRSP has also disclosed a plan for instituting new policies and regulatory frameworks for enabling private investments in economic zones, and for improving land zoning for industrial purposes.

To attract foreign direct investment (FDI), the government will also introduce equity protection laws, and simplify procedures for opening up branches or liaison offices of foreign companies in Bangladesh.

Measures will also be taken to reduce the use of chemical fertilizers and pesticides along with phasing out of persistent organic pollutants.

The first PRSP had been introduced for the period of 2005--2007, the tenure of which was extended up to the last fiscal.

The PRSP has been prepared mainly with advice from International Monetary Fund (IMF) and the World Bank. But, so far the government has not assessed the failures and successes of the first PRSP.

Asked about the evaluation, a high official of the planning ministry said they have incorporated the evaluation in the second PRSP. The draft of second PRSP, however, does not show any such specific evaluation.