ADP implementation hits years-low in Jul-Dec

Amid fiscal stress and an election period, the implementation of the annual development programme (ADP) dropped to years' low of 22.48% in the first six months of the current fiscal year. 

The government managed to spend Tk61,740 crore from its allocated ADP budget of Tk2.75 lakh crore in the July-December period of fiscal year 2023-24, according to the Implementation Monitoring and Evaluation Division (IMED). 

The implementation rate is the lowest at least since FY11, according to available monthly IMED data. 

Abul Kashem Md Mohiuddin, the secretary of the IMED, said cautious spending was observed during the initial six months of the current fiscal due to the elections. 

"However, as the elections are over, the implementation rate will be strengthened during the rest of the fiscal year," he added.

He further said the prime minister has already directed to accelerate the implementation process.

Dr Mustafa K Mujeri, executive director of the Institute for Inclusive Finance and Development, said the ongoing fiscal year is marked by significant challenges, including financial difficulties due to reduced tax revenue and high inflation. 

He also noted that the elections slowed down work in the field, causing uncertainty among contractors and a drop in ADP implementation. 

Mujeri recommended prioritising fully prepared development projects essential for the current situation and suggested training officials to enhance implementation capacity.

According to IMED data, government agencies spent 20.37% of the allocated government funds in the first six months of the current financial year, compared to 22.06% in FY23. 

Usually, 25% ADP is implemented during the first half of a fiscal year. 

Expenditure of foreign funds in ADP during the period was 26.14%, slightly lower than the 26.26% in the last fiscal year. 

Twenty-five ministries and divisions spent less than 20% of government funds. Notable among them are the Energy and Mineral Resources Division, Ministry of Food, Medical Education and Family Welfare Division, Directorate Of Secondary & Higher Education, Health Services Division, Road Transport and Highways Division, Ministry of Industries, Ministry of Social Welfare, Ministry of Transport and Ministry of Primary and Mass Education.

Besides, 10 government agencies spent less than 20% of foreign funds in the first six months of FY24. Among them are the Ministry of Social Welfare, Ministry of Industries, Directorate Of Secondary & Higher Education, and Ministry of Shipping.

Despite being allocated 79.83% of the total ADP, some agencies could not speed up implementation. 

However, ministries and divisions with the highest allocations are leading in ADP implementation, including the Bridges Division (32.45%), Ministry of Agriculture (32%), Ministry of Railways (32.33%), Local Government Division (30.57%), Ministry of Civil Aviation, and Ministry of Public Works (31.85%).