Bangladesh Analysis on WASH Budget Allocation & Expenditure FY 2018-19

Report 5 Hossain Zillur Rahman Mohammad Abdul Wazed Muhammad Aminul Islam Contents Abbreviations

1 Introduction 1 ADP Annual Development Programme 1.1 Introductory background 1 CCC Chattagram City Corporation 1.2 WASH Budget Tracking 2 CDA Chattagram Development Authority 1.3 Bangladesh Government institutions DCC Dhaka City Corporation responsible for spending in WASH sector 2 DNCC Dhaka North City Corporation DSCC Dhaka South City Corporation 2 Objectives and Methodology of PPRC Study 4 DP Development Partners 2.1 Objectives 4 DPHE Department of Public Health Engineering 2.2 Methodology 4 DPP Development Project Proposal 2.3 Limitation of the Study 5 FSM Faecal Sludge Management FY Financial Year (July to June) 3. WASH Budget Allocation: Review and Findings 6 GDP Gross Domestic Product 3.1 WASH Budget Allocation of FY 2017-2018 GOB Government of Bangladesh and by GoB Implementation Agency 6 IMED Implementation, Monitoring and 3.2 Disaggregating WASH Allocations: Evaluation Division The Sub-sectoral Scenario 7 JMP Joint Monitoring Programme 3.3 Disaggregating WASH Allocations: KCC Khulna City Corporation The Spatial scenario 8 LDC Least Developed Country 3.4 Allocation of WASH budget for 4 WASAs: LGD Local Government Division Striking Inequality 9 LGED Local Government Engineering Department 3.5 WASH Allocation in City Corporations: MOHFW Ministry of Health and Family Welfare another case of inequality ad inequity 10 MOLGRD&C Ministry of Local Government, 3.6 Disaggregating WASH Allocation by Urban and Rural 10 Rural Development and Cooperatives 3.7 Trend in WASH allocation over the years 11 MOP&ME Ministry of Primary and Mass Education MTBF Medium Term Budget Framework 4. WASH Expenditures vis-a- vis Allocations: PEDP Primary Education Development Programme Review of Findings 18 PPRC Power and Participation Research Centre 4..1 Analysis on Budget Expenditure 18 SDGs Sustainable Development Goals 4.2 Sector-wise allocation and expenditure 20 SDP Sector Development Plan 4.3 WASH expenditure by GoB Agencies 21 Tk Taka (Bangladeshi Currency) 4.4 Spatial disaggregation of WASH Expenditures 22 UNICEF United Nations Children Fund 4.5 WASH Allocation and Expenditure by all WASA23 WAB WaterAid Bangladesh WASA Water and Sewerage Authority 5. Recommendations and Conclusion 24 WASH Water, Sanitation and Hygiene 5.1 Recommendations 24 WHO World Health Organisation 5.2 Conclusion 24

ii / BANGLADESH Analysis on WASH Budget Allocation & Expenditure FY 2018-19 BANGLADESH Analysis on WASH Budget Allocation & Expenditure FY 2018-19 / iii World Health Organization (WHO) estimates that 97 However, current statistics show a mixed results. percent of the people of Bangladesh have access to According to MICS 2019 conducted by BBS use of water, but only 60 percent of them have to endure improved source of drinking water has seen a rise unsafe drinking water, while only 40 percent have from 97.9 92012-13) to 98.5 (in 2019). But we see a proper sanitation with wide differences between frustrated scenario in the use of safely managed rural and urban areas. This is a big challenge for drinking water services. MICS data of 2019 reveals Bangladesh. On the other hand in recent years the that percentage of household members with an problem of arsenic contamination of ground water improved drinking water source on premises, whose has further caused large section of the population source water was tested and free of E. coli and to risk exposure due to the absence of alternative available when needed is only 47.9 which has fallen safe water supply solutions. “Also, large differences Safe drinking water to be made available from 52.8 percent of MICS 2012-23. Similarly, in quality of service occur between rural, peri-urban for all rural and urban population. percentage of faecal contamination of source water and urban areas, causing risk of substitution with is 40.3 (MICS 2019) which was 41.7 percent in sources of poor quality” . Proportion of urban population with access 2012-13. On the other hand, the percentage of to sanitary latrines to be increased to 100%. household members whose household drinking The JMP (Joint Monitoring Programme of WHO and Proportion of rural population with access water was tested and found with E. coli contamina- UNICEF) published“Wash in Health Care Facilities, to sanitary latrines to be raised to 90%. tion in household drinking water has risen from 61.7 Global baseline Report 2019” for water supply, percent to 81.9 percent. Under the circumstances, it sanitation and hygiene indicatesthat wash services would be tough to achieve SDG 6 for the country. in healthcare facilities in Bangladesh are presently at sub-standard leveland they remain below the global average. This global survey has found that at least one out of every seven healthcare facilities has no waterservices in Bangladesh, while globally it is one out of 10 that do not have such services.It means that those healthcare facilities in the country either use tap water, water from a tube well, from some suchimproved source which is sometimes over half a kilometre away or they use surface water from a pond orriver. Sometimes there is no water at all.

Bangladesh government has adopted the Sector Development Plan (SDP), a rolling plan for Water Chapter 1 Supply and Sanitation Sector in Bangladesh 2011-25 in November 2011 having short term Introduction (2011-2015), medium term (2016-2020) and long term (2021-2025), but couldn’t be implemented due 1.1 Introductory background to shortage of fund and other reasons. The finan- Bangladesh, one of highest population densities in the cial gap, as estimated, was Taka 210 Billion which world with a 165 million people living in an area of 57 was suggested to arrange through additional 50 square miles, has, however, achieved a constant percent allocation from the government and rest progress in delivering clean water and sanitation 50 percent from the development partners (DPs). It services to her citizens over the years. But still there are may be noted that the government's budget 4 million (1 in every 7) who lack safe water and 85 allocations has been doubled in recent years million (almost half of the population) lack improved compare to that of FY 2007-08. There is no doubt sanitation. The country is yet to reach satisfactorily that SDP was a timely initiative to face the challeng- hard-to-reach areas, such as Chattagram Hill Tracts es of Sustainable Development Goals (SDGs). (three hilly districts) in the south-east region, haors to Government of Bangladesh’s policy and strategy on the north-east, and coastal belts and off-shore islands water and sanitation services (WSS) are combined to the south, and char lands in some mighty rivers.Al with Five Year Plan having following targets: these contribute to the water and sanitation crisis in the country. Faecal sludge management poses a serious threat as only 2 percent of human waste reaches any treatment plant in urban centres.

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1.2 WASH Budget Tracking WaterAid Bangladesh has started the process of year-wise tracking of budget allocation and expendi- ture in WASH sector from 2011 with reference period of FY2007-08. With the renewed attention to WASH in SDGs, the importance of WASH budget tracking has been recognized. The present study on allocation of GoB development budget in WASH sector is the outcome of a contract signed between WaterAid Bangladesh (WAB) and Power and Participation Research Centre (PPRC). PPRC as part of the contract has already analyzed the GoB development budget allocation and expenditure in WASH sector for the 1.3 Bangladesh Government FY2016-17 which is also prepared to serve the purpos- institutions responsible for es of a baseline report against which annual WASH spending in WASH sector allocations and expenditures up to FY2019-20 will be compared. The activities were not merely limited to The Local Government Division (LGD) under The WASAs (4 in number) and City Corporations (6 in see the budget allocations and expenditures thereof, Ministry of Local Government, Rural Development number) are responsible for ensuring supply of it allowed to prepare and share policy briefs on and Cooperatives (MoLGRDC) is the foremost drinking water in the cities. The towns and local sector-wise budget allocations in WASH area, and responsble agency for the WASH sector. Main municipalities and Union Parishads (UP) also have highlights the unattended sub-sectors, the faecal implementing agency under this Division (LGD) is mandate to implement WASH schemes in their sludge management and hygiene, the spatial inequity the Department of Public Health Engineering respective jurisdictions. But the Department of Public in budget allocation, the inequality and inequity that (DPHE) mandated for overall implementation of Health and Engineering under the administrative prevail in budget distribution among similarorganisa- WASH throughout the country. The DPHE has its control of Local Government Division (LGD) under tions and the capacity of the GoB agencies to spend field offices with manpower and hierarchical Ministry of Local Government and Rural Development the budgets timely, etc., many issues are discussed in network from capital city down to village level.LGD (MoLG & RD) is mainly responsible for WASH both in these policy briefs with proper recommendations to also executes its WASH responsibility through the urban and rural areas. Besides, Local Government be implemented by government and other responsi- Water and Sewerage Authorities (WASA) which Engineering Department (LGED) under administrative ble organisations.Thus WAB’s act of WASH budget have been established in five major metropolitan control of MoLG&RD also implement some WASH tracking have impacts on steady rise of ADP budget centres , namely, Dhaka (both North and South schemes in rural towns. distribution in WASH sectors. City Corporations) including Narayangonj, Chattagram, Khulna and Rajshahi. However, there eight city corporations where there is no WASA separately established.

5 / BANGLADESH Analysis on WASH Budget Allocation & Expenditure FY 2018-19 BANGLADESH Analysis on WASH Budget Allocation & Expenditure FY 2018-19 / 6 2.2 Methodology CHAPTER 2 The methodology has been Objectives and Methodology of followed by Power and Participation Research Centre (PPRC) for the PPRC Study study is primarily based on desk review where the compilation and collection of the relevant documents constituted an 2.1 Objectives important challenge. The research The overall objectives of this report are: process will be constituted of four phases as shown in Figure 1 below: To analyse the FY 2018-19 Annual Development Budget under Annual Development Programme (ADP) of Collection/compilation of documents, the government to identify the total data and information: The main Figure-1 allocation for WASH programmes being sources of data will be of Implemen- Methodology Phases implemented by different ministries tation, Monitoring and Evaluation and divisions/agencies in that particular Division (IMED) under Ministry of Financial Year (FY). Planning and Planning Commission challenge. The research process and WASH budget implementing will be constituted of four phases as shown in Figure 1 below: The analysis will be disaggregated GoBagencies. sub-sectoral, e.g., water, sanitation, Indentifying of projects under ADP hygiene and faecal sludge Collation/sifting of data related to realated to WASH management (FSM),and spatially, e.g., WASH will be conducted at this phase urban and rural areas, mega cities and and listing of ADP projects on WASH small towns. will be completed on the basis of this Distributuion of resources in WASH collation/sifting process. The analysis will also be doneby Analysis of available data/information reviewing the ADP allocation for Reviewing the allocation of resources and conclusion/recommendations FY2018-19 by implementing agencies in the budget and ADP, on the basis of the government, for example, DPHE, of projects undertaken and activities, WASA, and City Corporations. occupies the main activity of this phase. The analysis for the FY2018-19 will be carried out making comparison with The final phase constitutes of data previous years keeping FY2016-17 analysis and report-drafting. allocation and expenditure data as baseline. 2.3 Limitation of the Study The study will work on the variables to The present report has analyzed the The specific objective: consider in the policy briefs/advocacy allocations and expendituresin WASH sector briefs. during FY 2018-2019 based on allocation The study will support policy advocacy efforts of made against development projects in stakeholders includingWaterAid Bangladesh for Annual Development Programme (ADP) of drawing attention of the Government of Bangladesh the Government. The Budget Year starts in for actualbudget allocation needed in supply of June 2018 and ends in July 2019 with revised drinking water, andensuringhealth, sanitation and allocation done in in April-May of 2018. But hygiene goalsspecially for the people living in the it took several months to collect the expen- rural andhard-to-reach areas (charlands, coastal diture data from Implementing, Monitoring islands, haorand hilly areas), and thereby raising voice and Evaluation Division (IMED) of the for equitable distribution of resources and removing Ministry of Planning.IMED is mandated to discrimination in WASH sector. monitor and evaluate the projects under ADP and publish annual report.

7 / BANGLADESH Analysis on WASH Budget Allocation & Expenditure FY 2018-19 BANGLADESH Analysis on WASH Budget Allocation & Expenditure FY 2018-19 / 8 This budget is mostly spent for advocacy and human resource development through trainings. The budget of Ministry of Education has also been decreased. It is praiseworthy to note that allocation has been made to CDA (for Chattagram and Cox’s Bazar), Rangamati Hill District CHAPTER 3 Counciland Rajuk in currentfinancial year (FY2018-19). The other hill WASH Budget Allocation: districts should have get some development projects every year as right of the citizens living in these hard-to –reach region. Allocation of the imple- Review and Findings menting agencies of Local Government Division (LGD),i.e., Department of Public Health Engineering (DPHE), Local Government Engineering Division (LGED) and City Corporations, except WASAs, has increased by 64percent in the current financial year. This increasedbudget allocation has occurred due to a rise in allocation in favour of city corporations and DPHE. DPHE receives Taka 38057 lac more than the allocation of previous year (2017-18). DPHE is the sole agency of the government who implements WASH projects in rural towns/pourasavas and in rural areas, in hilly and char lands, whose allocation was considerably lower in FY2017-18 than the previous year (FY2016-17). There was a recommendation in the previous reportsand policy briefs for considerable increase of DPHE budget alloca- tion to establish equity in WASH services to the citizens of the country and thereby achieving the goals of the SDGs 2016-2030.An agency-wise analysis will be done later in this report.

Table-1 3.1 WASH Budget Allocation of FY2018-201 and by GoB Implementation Agency WASH Allocation by GoB Agency FY 2017-2018 and 2018-2019 (Tk in Lac) The following table (Table-1) shows the total allocation thoughthe allocation has decreased from previous year in WASH sector in Annual Development Programme of (FY2017-18) and further decreased by 12.5percent from Sector Revised Allocation Allocation Revised Allocation the government for FY2017-18 and FY2018-19. It may previous year. Allocation of Ministry of Irrigation and FY 2017-2018 FY 2018-2019 FY 2018-2019 be mentioned that the revised allocation is the final Water Resources initially shows an increase than the allocation. The table shows an increase in revised previous yera in initial allocation but has decreased more All (4) WASA 376022 334217 231524 allocation from the initial allocation made in FY2018-19, than fifty percentfrom initial allocation. M/O Irrigation and anincrease by 8.45percentfrom the previous year and Water Resourcesis primarily responsible for All City Corporation 124352 107179 223846 (FY2017-18) which is a normal case in Mid-Term Budget construction of polders and dykes to protect agricultural DPHE 70080 106847 108137 (MTB) frame where 10 percent increase is normally land and peoples' homesteads from flood. However, it is accepted. However, the remarkable scenario to note encouraging that the ministry has undertaken LGED 10410 675 43947 that all the City Corporations for the first time have programme to supply drinking water in the households M/O Education 1030 0 0 received some projects (finance) in ADP under current inside the polders in the coastal areas. No allocation revised budget. It is also praiseworthy to note that found in favour of MOP & ME in the financial year under Ministry of Primary & some budget allocations in the current financial year review whereas there was taka 45910 lac allocated and Mass Education (MoPME) 45910 0 0 have been made to prevent environmental degradation implemented in the previous year which was M/O Irrigation & and disaster risk sector. These might be pilot testing. encouraging as the budget was spent for supplying Water Resources 22500 32000 15000 But considering the vulnerability of the country to drinking water to the schools and construction of toilets climate change and disasters more projects should be separately for boys and girls through Primary Education M/OH&FW 59353 104038 60309 taken with more budget.The WASH allocation among Development Project (PEDP) supported by DPs.Though CDA 0 0 85370 the implementing agencies of the government WASA the initial allocation for current year (FY2018-19) of (established in four metropolitan areas- Dhaka, Chatta- Ministry of Health and Family Welfare (MoHFP) shows an RAJUK 0 0 4890 gram, Rajshahi and Khulna) dominates the highest increase by double but has been decreased in the revised Rangamati Hill allocation in the FY 2018-19, budget to level of previous year. District Council 0 0 2119

Total 709,657 684,956 775,142

9 / BANGLADESH Analysis on WASH Budget Allocation & Expenditure FY 2018-19 BANGLADESH Analysis on WASH Budget Allocation & Expenditure FY 2018-19 / 10 Fig. 1: WASH Allocation Fig. 2: WASH Allocation by by GoB Agency (Tk in Lac) Rangamati Hill District Council Sub-sectors (Tk in Lac) RAJUK 450000 CDA Revised Allocation FY 2017 -2018 400000 M/OH&FW Allocation FY 2018- 2019 350000 Revised Allocation FY 2018- 2019 M/O Irrigation & Water Resources Revised Allocation FY 2018-2019 300000 Ministry of Primary & Mass Education (MoPME) Allocation FY 2018-2019 250000 M/O Education Revised Allocation FY 2017-2018 200000

LGED 150000

DPHE 100000 50000 All City Corporation 0 All (4) WASA Water Sanitation Hygiene / Faecal Sludge Awareness Capacity Risk 0 100000 200000 300000 400000 Environment Management Building (HR) Reduction (FSM)

Figure 1 produced on table 1 shows 3.2 Disaggregating WASH Allocations: The Sub-sectoral An analysis shows that Sanitation sub-sector has there is a large increase in revised Scenario received almost similar budget to that of water budget allocation of city Table-2 and Figure 2 below show the allocation sub-sector. Further analysis presents that FSM and corporations and a curtail in the disaggregated by sub-sectors – water, sanitation, hygiene, faecal sludge Hygiene sub-sectors remain as a challenge due to initial and further in revised budget management (FSM) and human resource development (HR) and aware- very small amount of budget allocated; whereas BBS in case of WASAs. However, the FY ness building. There is some allocation for disaster management too. data (MICS 2019) shows that faecal contamination 2018-19 budget of DPHE has There is a rise of allocation in the revised budget of current year by BDT (E. coli contamination) of source water at the increased than the budget of FY 6.54 billion. Budgets have been allocated for human resource develop- household level is 40.3 percent and faecal 2017-18 but not in the same pace of ment which is a positive sign, and a recommendation of the previous contamination (E. coli contamination) of drinking metropolitan cities. Rangmati Hill reports. Allocation in capacity building and risk reduction is a good sign water at household level is 81.9 percent which was District Council managed few too.It is also evident thatsanitation sub-sector has got 37 percent 61.7 percent in previous MICS of 2012-13. This is allocation but other two hill districts, increased allocation which is a positive sign to achieve SDG 6. But alloca- quite a threat to public life no doubt. This massive Banderban and Khagrachchri, tion in water sub-sector has reduced however from initial allocation of rise (from 61.7% to 81.9%) is due to cover the haven deprived from the current year and further reduced from previous year (FY2017-18). definition of SDG 6 in this regard and indicators development projects. thereof. This implies largely that the situation was not good that much the previous MICS data had said Table-2 ((40.3 percent at source level and 61.7 percent in WASH Allocation by Sub-sectors drinking water). Similarly, percentage of household FY 2017-2018 and 2018-2019 (Tk in Lac) members using improved sanitation facilities which are not shared is only 64 .4 percent, MICS 2019

Sector Revised Allocation Allocation Revised Allocation releases. Such a situation of the country invokes or FY 2017-2018 FY 2018-2019 FY 2018-2019 appeals that we must spend much more money than what is being spent in FSM and Hygiene through Water 378004 424524 312099 visible projects and awareness building. Otherwise implementation of SDG 6 would not be possible for 166352 119418 264315 Sanitation Bangladesh. So, positive and strong attention Hygiene / 70080 90940 9350 should be given in these areas from urban centres to Envir onment the far reaching rural, islands, and hilly areas.

Faecal Sludge 15350 21165 39784 Management (FSM)

Awareness 79871 28909 4209

Capacity Building (HR) 0 0 141635

Risk Reduction 0 0 3750

Total 709657 684956 775142 Ibid. Bangladesh Bureau of Statistics: MICS 2019.

11 / BANGLADESH Analysis on WASH Budget Allocation & Expenditure FY 2018-19 BANGLADESH Analysis on WASH Budget Allocation & Expenditure FY 2018-19 / 12 3.3 Disaggregating WASH Allocationsby 3.4 Allocation of WASH budget Spatially for 4 WASAs As we have discussed disaggregating WASH allocation ous years in receiving the 2018-19 allocation followed It is observed from the budget allocations against the second largest and a mega city of the country,finds by sub-sectors (in section 3.2), similarly attempt has by secondary towns and pourasavas. On the other four WASAs (Table 4 and Figure 4))that the allocations slight increase allocation to that of FY2017-18 but been made to see the WASH budget allocation by hand for the first time rural areas including hilly, char in last two financial years with an increase in almost 50% decreased allocationin comparison to FY spatially. Table-3 describes spatial distribution of WASH islands and coastal areas receives large allocation FY2017-18 and further increase in initial allocation in 2016-17. Rajshahi'sallocation has been increased a lot allocations separately for the11metropolitan centres, which is 2.98 billion larger than base year (FY2016-17), FY2018-19, but, however, has decreased in final because of a project aid of Taka 231359 (in lac taka) rural towns and pourasavas and rural area. Budget though It is observed that in the revised budget of the (revised)allocation in FY2018-19. The figure is lower estimated for construction of a Surfaced Water allocated for hard-to-reach areas, such as, hills, char current year (FY2018-19) the allocation for hilly and even than FY2016-17 allocation. Dhaka WASA gets the Treatment Plant. Implementation of the project will land and coastal area have been shown separately to coastal areas have been reduced, and char land doesn't highest budget as usual, but finds a reduced allocation continue in the following financial year. KWASA’s highlight the amount has been received by these areas. receive any amount. Figure 3 developed on Table 3 is in comparison to previous two years and most revised allocation has been decreased due to slow Table 3 shows the metropolitan centres adding the more visible to understand the unequitable distribution interestingly almost 50 percent less from the initial progress in acquisition of land for construction of allocation of 4 WASAs hold the top position like previ- of WASH budget and projects. allocation of FY2018-19.It's a normal phenomenon sewerage system in Khulna city. An amount of Taka that Dhaka considering the city's population size and 5000 lac has been allocated for initial work and pay Table-3 area will get the highest allocation. Chattagram, and salary of the project staff in current year.

WASH Allocation by Spatially Table-4 FY 2016-2017, 2017-2018 and 2018-19 (Tk in Lac) WASH Allocation for All WASA

Spatially Revised Allocation Revised Allocation Allocation Revised Allocation FY 2016-2017, 2017-2018 and 2018-19 (Tk in Lac) FY 2016-2017 FY 2017-2018 FY 2018-2019 FY 2018-2019 WASA Allocation Revised Allocation Initial Allocation Revised Allocation FY 2016-2017 FY 2017-2018 FY 2018-2019 FY 2018-2019

Metropolitan City 335878 124352 441396 551497 (includes 4 WASAs) 110126 188624 Dhaka 219515 97117 Town/ Pourashova 64213 109993 123362 110358 Chattagram 121885 67307 74448 71565 Rural (includes hill and 84209 79099 120198 107528 1528 coastal budget) Rajshahi 1400 2000 57842

Char Land 11555 2280 0 0 Khulna 62771 61424 38254 5000 Hilly Land 0 Total 948 2135 2119 296310 318755 334217 23 1524 Coastal 860 1500 0 3640

Total 497663 709657 684956 775142 WASH Allocation for All WASA (Tk in Lac)

250000 Fig. 3: WASH Allocation 200000 Dhaka by Spatially (Tk in Lac) 150000 Chattagram Rajshahi 100000 Khulna 1600000 Revised Allocation FY 2016-2017 1400000 Allocation FY 2018-2019 50000 Revised Allocation FY 2017-2018 1200000 Revised Allocation FY 2018-2019 0 1000000 Allocation Revised Initial Revised FY2016-2017 Allocation Allocation Allocation 800000 FY 2017- FY 2018- FY 2018- 600000 2018 2019 2019 400000 200000 0 Metropolitan Town/ Rural Char Land Hilly Land Coastal City (includes Pourashova (includes hill 4 WASAs) and coastal budget)

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3.5 WASH Allocation in City Corporations: it is interesting to note that in the revised budget of 3.6 Disaggregating WASH Allocation by a Case of Inequality ad Inequity current year (FY2018-19) allocations have been made to Urban and Rural all the city corporations. In the previous years it was Table-5 below shows that total allocation of two city observed that Khulna, Barisal and GazipurCity Table 6 below shows five times decrease from initial corporations of Dhaka [Dhaka North City Corporation Corporations did not receive any budget in WASH allocation of current year (FY2018-19) to its revised (DNCC) and Dhaka South City Corporation (DSCC)]has sector. So as a recommendation Local Government budget in the rural area. But remains close to previous been increased by almost 5 times of FY2016-17 budget, Division (LGD)was urged to take proper initiatives for year (FY2017-18). The total budget increases 36 percent but 20 percent lower than the previous year undertaking sufficient projects for the city corporations from base year (FY2016-17). However, such increase in (FY2017-18). It is evident that DSCC receives 2.6 times in order to maintain at least equity in distribution of urban and rural budget did not follow the same pace. higher allocation than that of DNCC. This rise in budget ADP fund among the city corporations. This was also The increase in urban area is 39.47percentin revised happens due to undertaking a very good project – The highlighted in the policy briefs of pre-budget and post budget of current year from FY2016-17 is praiseworthy, Matuail Sanitary Land Field Project under DSCC. budget press conferences organized by WaterAid while rural finds a rise of only 15percent.This is not a Chittagong's share has increased remarkably by more Bangladesh and PPRC. Figure 5 is clearer to simply healthy scenario, for 70 percent citizens of the country than 17 times due to rolling of some sanitation- related understand that WASH budget mostly goes to two are living i the rural areas. Government should consider projects in this commercial city.However, urban hub - Dhaka and Chattagram Mega cities. it seriously to enhance the financing in rural areasfor equitable distribution of resources and to keep its commitment for sustainable WASH and achieving the Table-5 targets of Sustainable Development Goal- 6. Such a WASH Allocation by All City Corporations (Metro Cities) situation does not go with Prime Minister's declaration FY 2016-2017, 2017-2018 and 2018-19 (Taka in Lac) to increase urban facilities to the villages.

City Allocation Revised Allocation Allocation Revised Allocation Corporations FY 2016-2017 FY 2017-2018 FY 2018-2019 FY 2018-2019 Table-6

DNCC-39000 DNCC- 559 WASH Allocation by Region Dhaka 18818 111137 DSCC-48205 DSCC -67500 (Taka in Lac)

Chattagram 6000 29000 1000 107825 Region Allocation Revised Allocation Initial Allocation Revised Allocation 0 FY2016-2017 FY 2017-2018 FY2018-2019 FY2018-2019 Rajshahi 3000 1200 600 Kumilla 4000 1700 0 3000 Rural (includes hard 96624 103014 541327 114091 Rangpur 3000 285 0 2000 to-reach areas)

Sylhet 4750 10000 11600 8700 Urban 400091 606643 143629 661051 Narayangonj 0 9000 7374 14900 Total 497663 709387 684956 775142 Khulna 0 0 0 2500 Gazipur 0 0 0 16112 Barisal 0 0 0 100 900000 WASH Allocation by Region Total 39568 162322 107179 251196 800000 (Taka in Lac) 700000 Fig. 5: WASH Allocation by All City Corporations (Metro Cities) 600000 (Tk in Lac) 500000 Allocation FY 2016-2017 120000 Revised Allocation FY 2017-2018 400000 110000 Allocation FY 2018-2019 Rural (includes hard to-reach areas) 100000 Revised Allocation FY 2018-2019 300000 90000 Urban 80000 200000 70000 60000 100000 50000 40000 0 30000 Allocation Revised Initial Revised 20000 FY2016-2017 Allocation Allocation Allocation 10000 FY 2017- FY2018- FY2018- 0 2018 2019 2019

15 / BANGLADESH Analysis on WASH Budget Allocation & Expenditure FY 2018-19 BANGLADESH Analysis on WASH Budget Allocation & Expenditure FY 2018-19 / 16 3.7 Trend in WASH Allocation over the Years ii) Attempt has also been made in Table8and Figure bellow to capture the comparative growthin i) It is encouraging to note that the budget allocations for percentage with reference year 2016-17 of the WASH sector in ADP of the country have been increased country's economy as a whole, national budget, steadily over the years. However, though allocation annual development budget and annual development shows generally an upward trend, inter-year fluctuations budget of LGD (main responsible division of the have also been marked.Table7 below shows fluctuations government for WASH sector) as against annual in the past, however, there exists a very good upward WASH allocation. The Table and the Figure produced trend from FY 2014-15. In the current year (FY 2018-19) on the table show a leap in WASH sectorfrom the the allocation is the highest forever. The time series data base year (2016-17, a gap of only 3 years), but a from FY 2007-08 to 2015-16 have been taken from growth of 55.73percentby allocations couldn’t be previous such study (July 2016 Report) of WaterAid visible (see Fig. 7) as because the rise in budget Bangladesh. couldn’t follow the same pace of GDP and Development Budget of the country.It may be Table-7 mentioned that under MTB budget, the Ministry’s /

Long Term Trend in WASH Division’s budget (like that of LGD) will have least Allocation in Billion Taka scope to rise more than 10 percent as this type of rise in every year is expected by the Ministry of Finance. Billion Tk Hence, political as well as policy level push is FY (in Constant Price 2018) necessary to work beyond MTBF strategy in regard to WASH budget allocation. 2007 -08 25.63

2008 -09 21.94 Table-8 2009 -10 35.92 The Growth of WASH as against the GDP, National Budget and 2010 -11 43.81 Development Budget (2016-17 and 2018-19in billion taka) 2011 -12 51.68

FY GDP National Development LGD WASH 2012 -13 33.60 Budget Budget

2013 -14 31.71 2016-17 19610.17 3406.05 1125.26 213.22 49.77

2014 -15 45.16 2018-19 26604.16 5231.90 2027.21 234.28 77.51

2015 -16 47.87 % 35 53 80 9.88 55.73

2016 -17 49.77

2017 -18 70.9 6 Fig. 7: The Growth of WASH 50000 as against the GDP, 2018 -19 77.51 45000 National Budget and 40000 Development Budget (in billion Tk) 35000 30000 2016-17 25000 2018-19 Long Term Trend in WASH 20000 Allocation in Billion Taka 15000 90 10000 80 5000 70 0 National Development LGD WASH 60 GDP Budget Budget 50

40

30

20

10

0 2007-08 2008-09 2009-10 20010-11 20011-12 20012-13 20013-14 20014-15 20015-16 20016-17 20017-18 20018-19

17 / BANGLADESH Analysis on WASH Budget Allocation & Expenditure FY 2018-19 BANGLADESH Analysis on WASH Budget Allocation & Expenditure FY 2018-19 / 18 Table- 9 Agency- wise WASA Allocation and Expenditure of Review of FY2017-2018& FY 2018-19 (Taka in Lac)

Organization Revised Allocation Expenditure Revised Allocation Expenditure Findings 2017-2018 2017-2018 2018-2019 2018-2019

On WASH DPHE 75749 69259 108137 103329 Allocations and DWASA 188624 186044 97117 87849 CWASA 67307 61168 71565 63685 Expenditures KWASA 61424 61424 5000 5000 FY 2018-19 RWASA 1400 1400 57842 57842 M/O Water Resource 22500 6726 15000 14300

M/O Health 79871 79871 60309 60309

RAJUK 0 0 4890 4890

LGED 1930 1558 43947 40958

CDA 0 0 85370 82008

Rajshahi City Corporation 1930 1558 600 600

Barisal City Corporation 0 0 100 100

Sylhet City Corporation 10000 3750 8700 8700

Khulna City Corporation 0 0 2500 2500 CHAPTER 4 Chittagong City Corporation 29000 17625 107825 103848 WASH Allocations and DNCC(Dhaka North) 32900 32900 559 537

Expenditures: Review of Findings DSCC(Dhaka South) 78237 40498 67550 64195

4.1 Analysis on Budget Expenditure NCC(Narayangonj) 9000 3750 14900 14205 i) Before we go for analytical study on expenditure side of WASH Rangpur City Corporation 285 285 2000 2000 budget, it should be kept in mind that the main budget allocation which is revised at the end of 8 to 9 months is Ku milla City Corporation 0 0 3000 1822 normally not spent in full by the government ministries and Gazipur City Corporation 0 0 16112 0 agencies. This is a case of every year. So, whatever may be the size of allocation in original, the usual practice in the country Rangamati Hill is that the budget allocated at the beginning of financial year District Council 2135 965 2119 1996 is normally reduced or increased in revised budget, and due to lengthy tender process, lack of capacity, and similar other M/O Education 485 485 110 0 reasons, a portion of the budget remains unutilized. Secondly, Planning Commission/ Implementation Monitoring Evaluation M/O Primary & Division (IMED) usually takes time to finalise and publish the Mass Education 45910 45910 0 0 total expendituresincurred by 30th June of the financial year, 709657 615918 775142 720673 the closing date FY. Finalisation of expenditure for financial yearunder review (FY2018-2019), caused the delay as usual Source: IMED, M/O Planning due to time took to get the statement from IMED.

19 / BANGLADESH Analysis on WASH Budget Allocation & Expenditure FY 2018-19 BANGLADESH Analysis on WASH Budget Allocation & Expenditure FY 2018-19 / 20 ii) Table 10 below shows the time series annual It is a positive sign of timely implementation of 4.2 Sector-wise allocation and development programme (ADP) data of allocation in development projects (DP) under ADP and better expenditure WASH sector and expenditure thereof by GoB agen- utilization of funds released.The time series data from cies with the rate of utilization. The table reveals that FY 2007-08 to 2015-16 have been taken from July 2016 The Table 11 below shows sub-sector wise the rate of utilization of budget allocations for WASH Report of WaterAid Bangladesh. of WASH allocation and expenditure. has generally increased from a low level of 48.11% in Utilisation of budget allocated in water, the base year of 2007-08 to 92.97% in FY 2018-19. sanitation and capacity building (training etc.) was not satisfactory. Attention should be given to full utilisation of funds allocated Table-10 in the budget. Budget Allocation and Expenditure in WASH Sector

including Rate of Utilization FY 2007/2008 - 2018/2019 Table-11 (Billion Taka in 2018 constant price) Sector-wise WASH Allocation and Expenditure FY 2018-2019 FY Allocation Expenditure Rate of Utilization (expenditure: percentage (Taka in Lac) of allocation)

Sector Allocation Expenditure 2007 -08 25.63 12.33 48.11

2008 -09 21.94 20.92 95.35 Water 312099 297140 2009 -10 35.92 31.24 86.97 Sanitation 264315 238926 Sector-wise WASH Allocation 2010 -11 45.40 35.96 79.21 Hygiene 9350 9148 350000 and Expenditure (Taka in Lac) 300000 2011 -12 51.68 31.11 60.20 Allocation FSM 39784 39616 250000 Expenditure

2012 -13 33.60 33.58 99.94 Capacity building 141635 127913 200000 2013 -14 31.71 31.48 99.27 150000 Awareness rising 4209 4202 100000 2014 -15 45.16 40.88 90.52 Risk reduction 3750 3728 50000 2015 -16 47.87 37.85 79.07 0 Total 775142 720673 Water Sanitation Hygiene FSM Capacity Awareness Risk 2016 -17 49.77 41.33 83.05 building rising reduction

2017 -18 70.9 3 61.59 86.80

2018 -19 77.51 72.06 92.97

Fig. 8: Budget Allocation and Expenditure in WASH Sector including Rate of Utilization (Billion in Tk) Allocation Expenditure Rate of Utilization (expenditure: percentage of allocation) 120

100

80

60

40

20

0 2007-08 2008-09 2009-10 20010-11 20011-12 20012-13 20013-14 20014-15 20015-16 20016-17 20017-18 20018-19

21 / BANGLADESH Analysis on WASH Budget Allocation & Expenditure FY 2018-19 BANGLADESH Analysis on WASH Budget Allocation & Expenditure FY 2018-19 / 22 4.3 WASH expenditure by GoB Agencies M/O Health and Family Welfare and Rajuk have 4.4 Spatial disaggregation of WASH utilised the full amount allocated in favour of Table 12 below shows a good performance of DPHE Expenditures them. It is Gazipur City Corporation who couldn't responsible for rural towns and villages. This The rate of expenditure in year under review was spend a single farthing of taka 16112 lac allocated good only a total failure by Gazipur City institute has successfully utilise the budget amount against it. It may be mentioned that this Corporation. Table 13 and Figure 8 below show in the financial year under review. WASAs, in fact corporation (GCC) had been deprived from any that there was some lacking on part of some city Dhaka and Chattagram, couldn't spend a large amount of budget for the three consecutive years. corporations and other institutes, e.g., Dhaka amount of the budget. However, Rajshahi WASA So, it is painful that GCC couldn't utilise the fund. WASA and Local Government Engineering and Khulna WASA have implemented the projects Department (LGED).Rangamati Hill District and spent the budget amount. Councilcould not spend the full amount allocated in the current year, but its performance has improved than the previous year (FY2017-18).

Table-12 WASH Allocation and Expenditure by Agency in 2018-2019(Taka in Lac)

Revised Table-13 Government Allocation Expenditure Agencies 2018-2019 2018-2019 WASH Allocation and Expenditure Spatially All WASA 231524 214376 FY 2018-2019 (Taka in Lac) DPHE 108137 103329 Revised City Corporation 223846 198507 Spatially Allocation Expenditure Ministry of Water Resource 15000 14300 Metropolitan City 551497 503321 (includes 4 Ministry of Health 60309 60309 WASAs + Rajuk)

RAJUK 4890 4890 Town/ Pourashova 110358 106697 Rural (includes LGD/LGED 43947 40958 hilly and coastal 107528 105020 areas) CDA 85370 82008 Hill 2119 1996 RHDC 2119 1996 Coastal 3640 3639 Total 775142 720673 Total 775142 720673

WASH Allocation and Expenditure 600000 Fig. 8:WASH Allocation and by Agency (Taka in Lac) Expenditure Spatially (Tk in Lac) 250000 500000 Revised Allocation 2018-2019 Revised Allocation 200000 Expenditure 2018 -2019 400000 Expenditure

150000 300000

100000 200000

50000 100000

0 0 All WASA DPHE City Ministry of Ministry of RAJUK LGD/LGED CDA RHDC Metropolitan Town/ Rural (includes Hill Coastal Corporation Water Health City (includes 4 Pourashova hilly and coastal Resource WASAs + Rajuk) areas)

23 / BANGLADESH Analysis on WASH Budget Allocation & Expenditure FY 2018-19 BANGLADESH Analysis on WASH Budget Allocation & Expenditure FY 2018-19 / 24 ii. Few projects have been taken to prevent environmental degradation and address disaster risk. Such initiative is laudable, but these are not CHAPTER 5 sufficient. Data reveals that more than 30 percent Table-14 Recommendations and citizens are deprived from safe drinking water. Since WASH Allocation & there is huge crisis of potable water in the coastal Expenditure byall WASA Conclusion belt of the country, and some area tube well doesn't FY2018-2019 (Taka in Lac) work, so huge investment is needed to supply safe water in these areas. 5.1 Recommendations Revised iii. Disaggregation by sub-sectoral, water, sanitation, WASA Allocation Expenditure i. The analysis of ADP allocations in WASH FSM, etc., allocations show that hygiene and 4.5 WASH Allocation and Expenditure sector reveals that though there is steady Faecal Sludge Management are comparatively upward trend in budget allocations in this by all WASA Dhaka 97117 87849 under-funded. More attention is needed these setor, but disaggregated data shows that Table 14 below reveals that budget implementation sub-setor to achieve SDG 6. Funds for awareness there is clear inequity between and among capacity in most Water and Sewerage Authorities (WASA) Chittagong 71565 63685 building should be increased. the regions, urban centres and rural and has achieved a satisfactory level. But Chattagram WASA iv. Steps should be taken to manage solid waste in the Khulna 5000 5000 hard-to-reach areas. 70 percent people are fails to achieve the target. It couldn't utilise its 11 percent living in the rural areas. Hence, equitable cities as well as in secondary towns and peripheries. allocated budget. Supervision and monitoring should be Rajshahi 57842 57842 distribution of resources is recommended Treatment plants are to be established at a priority enhanced to develop its capacity. as a priority to realise Goal 6 of SDGs. basis in each and every urban hub. Total 231524 214376 v. Strong monitoring, supervision and coordination of WASH services in line with the SDG 6 indicators WASH Allocation & Expenditure are to be established for timely implementation of by all WASAFY2018-2019 development projects. (Taka in Lac) vi. Human resource development is mandatory for 250000 Revised Allocation better performance of the Government implementing Expenditure 200000 agencies. Allocations in this area is highly suggested.

150000 vii. A revision of Sector Development Plan (SDP) for Water Supply and Sanitation Sector (2011-2025)is 100000 a prime and timely requirement since this recommendation was made in the previous reports 50000 for its timely implementation. 0 Dhaka Chittagong Khulna Rajshahi Total viii. Public Money and Budget Management Act, 2009 has not been implemented specially in respect of establishment of a Unit to monitor the performance of the GoB agencies responsible for WASH service delivery. According to this Act Ministry of Finance is responsible to submit economic code-wise quarterly report to the Parliament.

5.2 Conclusion Tracking of Government’s WASH budget allocation with expenditure is laudable initiative of WaterAid Bangladesh. The analysis on allocations and expenditures has identified the spatial inequities of budget distribution, non-conformity of resource allocations among the WASH sub-sectors, long- term trend of WASH allocations, performance of the implementing agencies, and suggest the way out to achieve sustainable WASH sector. Such budget tracking is to be continued.

25 / BANGLADESH Analysis on WASH Budget Allocation & Expenditure FY 2018-19 BANGLADESH Analysis on WASH Budget Allocation & Expenditure FY 2018-19 / 26