Shipping ministry, health division lag in ADP spending

The shipping ministry is among the 10 ministries and departments that received the highest allocation, totaling Tk1,589 crore, in the revised Annual Development Programme (ADP) of the current fiscal year.

But the ministry has managed to spend only 22.66% of its allocation as of the end of the third quarter, according to data from the Implementation Monitoring and Evaluation Department (IMED). 

This ministry is not alone; several of the top 15 ministries and departments are lagging behind in spending. The Prime Minister's Office has spent 30.68% of its allocation, Health Services Division 31.67%, and the water resources ministry 32.99% of their respective allocations in the nine months through March.

According to IMED data, ministries and departments could not spend even half of the revised ADP allocations by the end of the third quarter. Out of the Tk254,392 crore allocated, the government agencies have spent Tk107,612 crore as of March, which is 42.30% of the total allocation.

The revised ADP implementation rate was 41.65% during the same period a year earlier, compared to 45.05% in the previous financial year. Due to the slow pace of implementation, IMED believes there will be pressure to increase expenditure towards the end of the financial year.

To achieve 100% implementation of the revised ADP, ministries and departments will now need to spend Tk146,779 crore in the final three months of the fiscal year ending in June.

Mustafa K Mujeri, former director general of the Bangladesh Institute of Development Studies, said expenditure typically starts slowly at the beginning of the financial year, leading to increased pressure towards the end.

"More than 60% of the allocation tends to be spent in the last three months of the fiscal year due to inadequate action planning. Rushed spending at the end may result in compromised work quality and create possibilities for waste and corruption," he told The Business Standard.

Mujeri noted that despite the increase in the size of the ADP, the implementation capacity of ministries and departments has not improved. According to an updated report from the IMED, government expenditure during the July-March period decreased compared to the same period in the previous fiscal year, with ministries and departments spending 63.48%, down from 64.70% in the last fiscal year.

IMED officials say, given the current economic situation, the government is withholding funds for less priority projects. The Finance Division is disbursing funds slowly for projects that can be deferred without causing significant issues if not implemented immediately.

However, funding for important projects that directly benefit people, contribute to employment, and support economic development continues as usual.

Meanwhile, foreign aid allocation has slightly increased compared to the first nine months of the last fiscal year. This increase is attributed to the impact of the depreciation of the local currency against the dollar.

IMED data shows that 32.82% of foreign funds were spent in the nine months, up from 31.49% in the last fiscal year.

On the other hand, among the ministries and departments that received the highest allocation, only the Power Division spent more than 50%, with a spending ratio of 63.87% through March.

Additionally, the railways ministry spent 53.98%, the civil aviation tourism ministry 50.13%, and the agriculture ministry 50% of their respective allocations.