Jul-Apr ADP implantation lowest in 3 years

Infographics: TBS

Implementation of the Annual Development Programme (ADP) during the first 10 months of the fiscal 2023-24 has been the slowest in three years.

In July-April, the ministries and other government agencies spent only 49.26% of the revised ADP, according to data from the Implementation, Monitoring, and Evaluation Division (IMED) released on Monday.

The revised ADP implementation rates for the corresponding periods in the previous two fiscal years were 50.33% and 54.57%, respectively.

The revised ADP allocation for FY24 was Tk254,392 crore, including the own funding of various organisations, out of which the ministries and departments were able to spend Tk125,316 crore.

IMED officials indicated that there will be pressure to spend half of the allocated money in the last two months of the fiscal year.

Md Mamun-Al-Rashid, former secretary to the Planning Division, told The Business Standard that despite having a work plan and purchase plan throughout the fiscal year for the government's budget expenditures, the officials concerned do not follow them.

"For this reason, ADP is still traditionally implemented in our country. It is observed that half of the money is spent in the first 9-10 months of the financial year. A major portion is spent in haste during the final two-three months," he added.

He also said that although officials lack skills, the major limitation is that implementation is not done according to the action plan and purchase plan. To address this, he recommended that all officials, project managers, and heads of organisations concerned be held accountable.

He also believes that it is not possible to overcome the traditional tendency towards ADP implementation without ensuring accountability.

The ADP report for July-April was presented before the prime minister in the Executive Committee of the National Economic Council meeting on 16 May.

At the end of the meeting, IMED Secretary Abul Kashem Md Mohiuddin told reporters that although the implementation rate of ADP during July-April was low compared to the same period of the previous fiscal year, the PM has ordered an increase in the pace of implementation for the remainder of the fiscal year. Consequently, more activity is expected in the last two months of the financial year.

According to IMED data, funds for ADP are allocated from three sources: government treasury funds, development aid, and loans and grants. Additionally, government agencies have some allocations from their own funds.

Data further shows that the utilisation of government funds and foreign debt-grants has decreased in the current fiscal year. While spending from the agencies' own funds has increased.

Government agencies spent 43.91% of the targeted expenditure from public funds in ADP during July-April, compared to 46.24% in the equivalent period of the last fiscal year. In the same period, 58.05% of the allocated foreign loans and grants were spent, compared to 59.35% a year prior.

Of the ADP, 77.19% was allocated to 15 major ministries and departments. Among these, several ministries and departments with the highest allocations are lagging in implementation. For instance, the shipping ministry has spent 33.58% of its allocation, the Prime Minister's Office 34.27%, and the Health Services Division 37.33%.

Additionally, less than 50% of the ADP has been implemented by the Road Transport and Highways Department, the Ministry of Water Resources, the Bridges Division, the Ministry of Housing and Public Works, and the Department of Secondary and Higher Education.

Ministries and departments spending more than 50% include the Power Division, the Ministry of Science and Technology, the Local Government Division, the Ministry of Railways, the Ministry of Civil Aviation and Tourism, and the Ministry of Agriculture.