Jul-Feb FY24 ADP implementation hits decade-low

The shipping ministry, one of the 10 ministries and departments receiving the highest allocation in the Annual Development Programme (ADP) of the current fiscal year, has only spent 13.88% of its Tk9,933.14 crore allocation as of February, according to the IMED.

Additionally, several top 15 ministries and departments have not been able to increase their expenditures, even though two halves of the fiscal year have passed.

Among them, the Directorate of Secondary and Higher Education spent only 14.71%, the Directorate General of Health Services 20.59%, and the industries ministry 20.81% during the July-February period, data from the Implementation Monitoring and Evaluation Department (IMED) show.

During the first eight months of this fiscal year, ADP implementation reached 31.17% – the lowest rate in more than a decade. Even during the government's austerity drive in the last fiscal year, the implementation rate stood at 32.10%.

The ministries and departments have spent Tk85,602.59 crore during this period out of the Tk274,674 crore allocated in the ADP for the current fiscal year.

According to the latest report from IMED, expenditures from both the allocation of public funds and expenditures on foreign debt allocation have decreased. In the current fiscal year, only 29.47% of the allocation from government funds to ADP has been spent in eight months. Expenditure rates from public funds for the fiscal years 2022-23 and 2021-22 were 30.22% and 36.12%, respectively.

On the other hand, 34.15% of the target for the utilisation of foreign loans and grants in the current fiscal year was spent during July-February. The rate was 35.69% and 35.54%, respectively, in the fiscal years 2022-23 and 2021-22.

At a press conference held after the approval of the Revised Annual Development Programme on 12 March, Planning Minister Major General (retd) Abdus Salam explained that the implementation of development projects had been hampered for several days due to political violence before the January elections. As a result, the ADP implementation rate is slightly lower this fiscal year.

Meanwhile, in light of implementation capacity, an allocation of Tk254,391.64 crore has been made in the revised ADP for the current financial year.

In the revised ADP, the allocation of public funds decreased by Tk7,500 crore, or 4.44%, while the allocation of foreign aid declined by Tk10,500 crore, or 11.17%.

IMED officials said that considering the current economic situation, the government is not releasing funds for less important projects. The Finance Division is disbursing funds for projects that would not pose a problem if not implemented immediately or are deemed less critical at a slower pace.

However, there are no disruptions in fund release for important projects that directly benefit people, generate employment, and contribute to economic development, they added.

According to IMED data, of 58 ministries and departments, 28 have spent less than 30% of their allocations.

The entities include the ministries of railways, road transport and highways, shipping, rural development and cooperatives, industries, health, food, science and technology, textiles and jute, as well as the secondary and higher education department.

On the other hand, there are 13 ministries and departments that have received foreign loan allocation in the ADP, but the use of foreign aid has been less than 30% in the past eight months. It is notable that among these are the ministries of housing and public works, industries, shipping, social welfare, overseas employment, and the secondary and higher education department.

According to IMED data, 15 ministries and departments have been allocated 79.83% of the total ADP.

Among these ministries and departments, civil aviation and tourism spent 46.79%, the agriculture ministry 46.41%, the local government department 44.46%, and the water resources ministry 42.77% from government and foreign funds.