Ministries, divisions with highest allocation lag in ADP implementation

Annual development programme (ADP) implementation registered a record low of 23.53% progress in the first half of FY23, according to available data, with the execution rate of some of the ministries and divisions that have received the highest allocations is among the lowest.

The previous lowest rate of ADP implementation in the July-December period was recorded at 23.54 in FY16. 

Among the 15 ministries and divisions that have got some 83% of the total ADP allocation for this fiscal year, only three – the Bridge Division, the Power Division, and the Ministry of Housing and Public Works – logged over 30% progress in the July-December period of this fiscal year, according to the latest progress report prepared by the  Implementation Monitoring and Evaluation Division (IMED).

On the other hand, the ADP implementation rate of five among these 15 ministries and divisions – the Health Service Division, the Ministry of Primary and Mass Education, the Secondary and Higher Education Division, the Ministry of Shipping, and the Ministry of Science and Technology – was below 20% in the H1 of FY23.

From complexities in tendering, land acquisition, and foreign fund sourcing to delays in administrative approval and appointment of project directors – all have got in the way of the ADP implementation, said IMED officials.

Government austerity in project spending in view of the present economic situation limiting fund spending on some projects has also limited the ADP implementation rate, said officials of the (IMED) of the planning ministry.

According to IMED data, 28 ministries and divisions could not spend even 20% of the allocated government funds in the first six months of the fiscal year. Notable among these agencies are  the Health Service Division, the Ministry of Primary and Mass Education, the Secondary and Higher Education Division, the Ministry of Shipping, the Ministry of Science and Technology, the Ministry of Agriculture and Technology, the Ministry of Energy and Mineral Resources, the Ministry of Disaster Management and Relief, and the Ministry of Food.

IMED officials said that although the government has devised various strategies to implement the ADP, the ministries and divisions are yet to develop implementation capacity.

The government has divided various projects into A, B, and C categories considering their importance to tackle the economic crises. The less important projects have been put into the C category, and fund release for them has been halted temporarily, said planning ministry officials.

There is a provision to release 75% of the fund for the B-category projects while for the A-category ones, 100% of the allocated fund can be released.

Considering the current economic situation, the government has attached importance to the use of foreign aid. All foreign aid-funded projects are kept in the A category. Even then, 20 ministries and divisions saw a 20% drop in foreign aid spending in the first six months of the fiscal year.

Notable among them are the Ministry of Social Welfare, the Ministry of Civil Aviation and Tourism, the Ministry of Housing, the Ministry of Food, the Ministry of Primary and Mass Education, the Health Service Division, and the Ministry of Water Resources.

Foreign aid allocation to be reduced

Meanwhile, the allocation of foreign aid is going to be reduced by Tk15,000 crore in the current financial year due to a lack of improvement in the implementation capacity. 

Last month, the Economic Relations Division (ERD) proposed to reduce the foreign aid allocation in the revised ADP after a series of meetings with all ministries and divisions.

In the budget for FY23, the government had originally proposed to spend Tk93,000 from foreign aid allocation. The figure has been proposed to be reduced to Tk78,000 crore in the revised ADP.