The new ADP

In fact, the local currency component of the ADP, 2004-05 is estimated at 65.78 percent with the rest coming in the shape of project aid and food-based programme aid. The relative high level of domestic financing signifies a measure of self-reliance. This is a positive development, even though it has been partly a product of an inclement foreign aid climate which forced us into relying more on our own resources.

In order to implement the ambitious ADP, 2004-05 we will have to critically depend on mobilisation of domestic resources on a level we have never tried before. Much to our relief, the finance minister has indicated that no new taxes will be imposed in the new budget to meet the domestic resource requirement. Only the tax net will be expanded for the purpose.

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The rationale for tax base expansion is very strong in a country of 130 million where not even a million are tax payers. But revenue collection fell short of target in fiscal 2003-04 despite a slightly expanded tax net. So, what is crucial here is an efficient collection of revenues.

Of paramount importance to ADP implementation, however, is a guarantee that corruption in and wastage of public expenditure will be scrupulously avoided. The Implementation, Monitoring and Evaluation Division (IMED) of the Planning Ministry in a recent report unravelled the magnitude of corruption, irregularities and mal-practices they detected from on-spot inspection of 289 projects in fiscal 2002 and 2003. The total number of projects having been 1345, their findings obviously represented only a tip of the ice-berg. Unless we learn from such lessons and take corrective steps, our ADPs will remain an exercise in jugglery of figures as the physical targets go unmet to the shattering of the poor man's dreams for a better day.