ADP implementation hits 14-year low in H1 of FY24

Ongoing economic headwinds have slowed down the development activities in the country as the implementation of Annual Development Programme (ADP) was the lowest in the first half of the current fiscal year compared to the same period of last 14 years.

According to the Implementation, Monitoring and Evaluation Division (IMED) data, the implementation of ADP in the first half of the fiscal year 2023–24 was 22.48 per cent which was negative 3.05 per cent compared to the same period of the previous fiscal year.

However, experts are blaming the government’s austerity measures for a decrease in expenditure.

The ADP implementation rate was 23.53 per cent during the same period of FY23 while it was 24.06 per cent and 23.89 per cent in the first half of FY22 and FY21. In the same period of the fiscal year 2019-20, it was 26.59 per cent.

The IMED report says that in the current fiscal year, Tk 2,74,674 crore has been allocated for the ADP implementation. But in the July-December period of FY2023-24, a total of Tk 61,740 crore was spent and the execution rate was 5.42 per cent in the single month of December.

As a single month, the implementation rate was slightly higher in December last year than the same month of the previous fiscal year. The total amount of money spent last December was Tk 14,882 crore, which was Tk 13,127 crore in December 2022.

Due to the dollar crunch, the government has given importance to the implementation of foreign loan support projects. Tk 34,429 crore has been spent till December of this financial year from government funding, which is 20.37 per cent of the total allocation.

The report said that Bangladesh Public Service Commission has not yet opened the expenditure account in the current financial year.

The Ministry of Foreign Affairs, which could not spend any money last financial year, spent only 3.29 per cent of its allocation in the first five months of this fiscal year.

According to the report, the average implementation by 15 ministries and departments which received maximum allocation was 23.45 per cent. Of the total amount, Tk 2,74,674 crore or 80 per cent has been allocated for these ministries and departments.

Out of this, the highest 32.45 per cent has been implemented by Bridge Division. The Ministry of Railways has implemented the second highest of 32.33 per cent. The Ministry of Agriculture has managed to spend the third highest allocation of 32.03 per cent.

Besides, the Ministry of Civil Aviation and Tourism has implemented 31.85 per cent, and Local Government Division 30.57 per cent.

The Ministry of Water Resources implemented 27.16 per cent, followed by Power Division 26.52 per cent, Ministry of Housing and Public Works 22.45 per cent, Science and Technology Ministry 21.03 per cent, Primary and Mass Education Ministry 19.67 per cent.

Besides, the report said, Road Transport and Highways Division implemented 16.97 per cent, Industries Ministry 15.93 per cent, Health Services Division 14.99 per cent, Directorate of Secondary & Higher Education 11.64 per cent and Shipping Ministry only 9.23 per cent.