July-October ADP spending record low at 7.9%

The implementation of the Annual Development Programme (ADP) in the first four months of the current fiscal year has plummeted to 7.9% – an all-time low of the period, according to the Implementation Monitoring and Evaluation Department (IMED).

During the July-October period, Tk21,987.17 crore was utilised, a sharp decline from Tk31,358.50 crore spent during the same period last fiscal year, which represented 11.58% of the ADP allocation at the time.

Data from the IMED website, dating back to the fiscal 2010-11, indicate that ADP implementation in previous years typically ranged between 12% and 13% during the same period.

The government allocated Tk278,288.90 crore for the ADP in the current fiscal year.

Abul Kashem Md Mohiuddin, secretary to the IMED, which released the latest data on Sunday, told The Business Standard the interim government is currently reviewing all projects.

"Following a thorough evaluation, decisions will be made regarding less critical projects. As a result, fund disbursement for many projects has slowed, leading to a decline in ADP implementation," he added.

However, the secretary expressed optimism that the flow of funds to development projects would increase in the near future, accelerating progress.

IMED officials said ADP implementation has also been impacted by the July-August uprising, which resulted in the ouster of the Awami League government and the establishment of the interim administration led by Professor Muhammad Yunus.

Project implementation has been disrupted due to the absence of contractors for several domestic and foreign initiatives in project areas. Additionally, the ADP is experiencing reduced fund releases, with the government prioritising only essential projects.

The government has also decided to review both ongoing projects and proposed projects in the pipeline. As a result, proposals to extend timelines and increase costs for many ongoing projects have stalled. Collectively, these factors have significantly slowed ADP implementation, officials said.

According to the IMED report, Tk11,898 crore was spent from government funds during the July-October period, representing just 7.15% of the allocated government funds – the lowest-ever spending for this timeframe. In comparison, Tk18,813 crore was spent during the same period in the previous fiscal year.

In the current fiscal year, Tk8,210 crore, or 8.21%, of the allocation for foreign loans and grants was utilised during the first four months, compared to Tk11,864 crore, or 7.98%, during the same period last year.

According to IMED data, among the 15 ministries and departments receiving the highest allocations, the Bridges Division spent only 1.14% of its allocated funds in July-October. The Health Services Division utilised 2.42%, while the Health Education and Family Welfare Division spent 2.01%.

The Water Resources Ministry implemented 2.93% of its allocation, the shipping ministry 4.93%, the Road Transport and Highways Department 5.73%, and the Secondary and Higher Education Department 6.79%.

In contrast, some ministries and departments demonstrated relatively higher spending. The Local Government Division utilised 13.90%, the Power Division 10.44%, the railways ministry 12.90%, the primary and mass education ministry 9.65%, the housing and public works ministry 10.91%, and the agriculture ministry 11.58% of their respective allocations.