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Govt proposes Tk 5 cr special allocation for each MP
Published : Wednesday, 11 November, 2026 at 10:19 AM
Observer Online Report
The Local Government Division has proposed a special allocation of Tk 5 crore for each Member of Parliament (MP), seeking a total of Tk 1,500 crore from the Finance Division.
The funds would be used for renovating educational and religious institutions, supporting poor meritorious students and disadvantaged people, and financing sports and cultural activities. Experts, however, have questioned the move amid the government's financial constraints.
Two letters propose allocating Tk 5 crore each to 264 MPs outside city corporation areas and 36 MPs within city corporation areas. The allocations would come from the annual development funds of upazila parishads and city corporations, respectively.
Last month, the division approved Tk 51.18 crore for 3,159 union parishads for development projects selected by MPs. The opposition criticised the allocation, alleging it could influence upcoming union parishad elections.
In its letters, the division argued that MPs needed additional funds to address urgent local demands, as their existing discretionary allocations were insufficient. The 2026-27 budget has Tk 3,255 crore allocated for development assistance to local government institutions.
Transparency International Bangladesh (TIB) Executive Director Dr Iftekharuzzaman warned that such lump-sum allocations often lead to partisan project selection, corruption, embezzlement and misuse of public funds.
He said the government should assess the necessity of such allocations and establish clear guidelines for project selection and implementation. He also questioned MPs' direct involvement in development projects, saying their primary responsibility was to legislate and ensure government accountability.
Former World Bank Dhaka office Lead Economist Dr Zahid Hussain said concerns over the allocation were justified amid financial constraints. Although MPs could be given resources to support local development, past experience showed that irregularities in spending such funds were more common than examples of good practice.
He stressed that transparency and accountability must be ensured, questioning the need for separate funds when government agencies and parliamentary committees already oversee local development and public spending.
-MT
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Published by the Editor on behalf of the Observer Ltd. from Globe Printers, 24/A, New Eskaton Road, Ramna, Dhaka.
Editorial, News and Commercial Offices : Aziz Bhaban (2nd floor), 93, Motijheel C/A, Dhaka-1000.
Phone: PABX- 41053001-06; Advertisement: 41053012; 01793317829, 01550707291, 01550707296
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