Bangladesh's Finance Minister AMA Muhith on Thursday proposed a seven billion taka (about US$100 million) allocation in next fiscal's budget to fight the impacts of climate change.

When announcing the country's proposed national budget for next fiscal year (July 2008-June 2009) at the parliament on Thursday, Muhith said the proposed allocation will go to the government's Climate Change Fund to countering the impending natural disasters caused by the climate change.

The Bangladeshi government in 2008, for the first time, in its budget for current fiscal year ending in June allocated three billion taka (about US$43 million) to set up a climate change fund to mitigate any disasters.

Muhith said the Cabinet has in principle approved the Climate Change Fund which was constituted with the government's own sources.

"We are committed to prepare a detailed action plan designed to face disasters due to climate change," he said.

He said the main focus of the government activities will be carrying out regular dredging of rivers and canals, strengthening the embankments along coastal areas and establishing adequate cyclone shelters, reducing pollution and preserving forestry.

The rise of sea water level is causing saline water intrusion through the estuaries in the coastal areas, Muhith said. Nearly 20 million people in the South Asian delta country will be displaced by 2050 due to climate change, he said.

"The disaster and calamity due to climate change cannot be reversed. Therefore, we should aim to mitigate dislocation and sufferings, and to build the capacity to adapt lives and livelihoods in the coastal areas," he said.

Bangladesh was hit by two consecutive floods and super cyclone Sidr in 2007 which claimed thousands of people's lives. On May 25 this year, the cyclone Aila battered the country's southwestern coast, leaving 179 people dead and 3 million affected.

"The cyclone Aila once again reminded us how risk-prone we are to natural calamities," the finance minister said.

(Xinhua News Agency June 12, 2009)