Jul-Jan ADP expenditure falls Tk14,587cr YoY

The government's development expenditure in the current fiscal year has decreased due to the student-led July uprising and its aftermath.  

According to the Implementation Monitoring and Evaluation Division (IMED), Tk59,876.87 crore has been spent from the Annual Development Programme (ADP) during July-January, down by Tk14,587 crore from the Tk74,464.19 crore spent during the same period a year ago.

The ADP implementation rate for the first seven months stands at 21.52%, compared to 27.11% last year, marking the lowest rate in over a decade. No previous fiscal year has seen such a drop, with data available up to fiscal 2011-12 on the IMED website.

IMED officials said the ADP could not be implemented during the July uprising, and unrest across the administration has yet to normalise. As a result, ADP implementation has not gained momentum this fiscal year.  

Officials added that the government has reviewed all ongoing projects from the previous administration, with many politically motivated or irrelevant schemes being dropped, affecting implementation.  

Economists say instability has spread across all areas since July, and the situation remains abnormal. As a result, the implementation rate is the lowest in over a decade.

Professor Selim Raihan said ADP implementation typically lags in the first six to nine months, with most funds spent in a rush during the final three months.  

He said the current fiscal year has faced significant disruptions, particularly due to the July-August movement, the government transition, and unrest within the bureaucracy.  

This has led to stagnation among ministries and departments, and ADP implementation is expected to remain low by the end of the fiscal year.  

Raihan, also executive director of SANEM, emphasised that the current government should avoid hasty spending seen under the previous administration, which led to unnecessary projects and corruption.  

According to IMED data, government expenditure in July-January amounted to Tk30,096 crore, or 18.24% of the total allocation. In the same period last year, expenditure was Tk42,835 crore, representing 25.35% of the allocation.  

Expenditure from foreign funds during this period was Tk24,961 crore, or 24.96%, compared to Tk28,384 crore, or 30%, in the same period last year.

The government has allocated 76.65% of the ADP for the current fiscal year to 15 ministries and departments. The implementation rate largely depends on these ministries and departments.  

Among the 15 ministries and departments with the highest allocation, several have very low implementation rates. The Health Services Division has spent only 5%, the Health Education and Family Welfare Division 9.66%, the Ministry of Shipping 11.84%, the Secondary and Higher Education Division 16%, the Ministry of Civil Aviation and Tourism 18.14%, and the Ministry of Railways 19.91%.  

Among the ministries and departments with the highest allocation, two have implemented more than 30% of the ADP. The Ministry of Science and Technology has implemented 36.55%, and the Power Division 33.64% in the first seven months.  

Outside the ministries and departments with the highest allocation, those with the lowest implementation rates include the Ministry of Foreign Affairs at 0.33%, the Internal Resources Division at 1.90%, the Ministry of Lands at 5.31%, the Ministry of Social Welfare at 6%, the Ministry of Commerce at 7%, the Chattogram Hill Tracts at 7.41%, the Ministry of Liberation War Affairs at 9%, and the Office of the Chief Adviser at 9.66%.