MDG Financing Strategy for Bangladesh
In Bangladesh, it is now recognized that MDGs may not be attained under a business as usual scenario. Additional interventions are needed to push forward the MDG agenda. Accordingly, the MDG Needs Assessment costs are derived for 7 clusters through five Thematic Working Groups (TWGs) under the aegis of the project “Support to Monitoring PRS and MDG in Bangladesh”. In line with convention, the MDG NA estimates are reported for 7 clusters under re-current and capital expenditure types.
Total NA cost required to achieve MDGs in Bangladesh is estimated to be $104.18 billion for the 7 year period (i.e. FY09 to FY15). More than $74 billion will need to be spent for re-current expenditure for the 7 year period while only around $29 billion will required to be allocated for capital expenditure. Both types of expenditure are showing an increasing trajectory over the 7 year period. Re-current expenditure shows an increasing trajectory rising to approximately $14 billion in 2015 from $7.5 billion in 2009. Capital expenditure is also tracking a rising pattern to around $5 billion in 2015 from $3.4 million in 2009. Framed by the population outlook, the per capita MDG expenditure in USD will rise to $118/person in 2015 from $75/person in 2009.
Composition of total MDG costs between capital and recurrent cost reveals predominance of the re-current type over the capital type. Share of re-current type is around 70% while the share for capital type is about 30 percent. The prescribed composition (70:30) is different from the observed composition (65:35) and hence calls for a marginal re-orientation of expenditure towards re-current type.
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