ADP implementation falls to four-year low during July-May of FY24

During the first 11 months of the current fiscal year, 42.46% of the revised Annual Development Programme (ADP) allocation remained unutilised.

According to the latest report from the Implementation Monitoring and Evaluation Division (IMED) released on Wednesday, only 57.54% of the revised ADP allocation was spent in July-May – the lowest spending rate in the past four fiscal years.

In comparison, the implementation rate of the revised ADP was 61.73% during the corresponding period last fiscal year and 64.84% in the preceding.

The revised ADP allocation for the current financial year was Tk254,391.64 crore, including the self-funding from various agencies. Out of this, government ministries and departments managed to spend Tk146,375.50 crore.

IMED Secretary Abul Kashem Md Mohiuddin told The Business Standard that although many projects have been completed, the implementation rates appear low due to the non-payment of bills.

He believes that the implementation rate will see a significant increase in the final month of the financial year.

 "The IMED will review the reasons behind the lagging implementation rate of the ADP this time," he said. "Steps will be taken to accelerate implementation from the beginning of the next financial year."

Md Mamun-Al-Rashid, former Planning Division secretary, told TBS that although the government has a work plan and purchase plan for the fiscal year, the officials concerned often do not adhere to them.

He stated, "For this reason, ADP implementation in our country remains traditional. It is observed that half of the allocated funds are spent in the first 9-10 months of the financial year, while a major portion is hastily spent during the final two to three months."

He further mentioned that, although there is a lack of skills among officials, the major limitation in ADP implementation is the failure to follow the action plan and purchase plan.

To address this issue, he recommended that all concerned officials, project managers, and heads of organisations be held accountable.

He believes that without ensuring accountability, it is not possible to move away from the traditional tendency of ADP implementation.

Funds for the ADP are allocated from three sources: government treasury funds, development aid loans, and grants, along with some allocations from the own funds of government agencies.

According to IMED data, both the use of government funds and foreign loans and grants have decreased in the current financial year.

Government agencies spent 52% of their target expenditure from public funds in the ADP in July-May, compared to 57.41% during the same period last fiscal year. Similarly, 65.81% of the allocation from foreign loans and grants was spent in the 11 months through May, down from 70.86% in the equivalent period a year ago.

Of the total ADP, 77.19% was allocated to 15 major ministries and departments. Among these, the Health Services Division spent only 43% of its allocation, the shipping department 42.43%, and the Bridges Division 49.42%.

During the July-May period, the Road Transport and Highways Division spent 52.78%, the Prime Minister's Office 52.87%, the Directorate of Secondary and Higher Education 58.23%, and the Home and Public Works Ministry 54.07%.

Some ministries and departments with higher allocations had slightly better implementation rates. The Power Division implemented 77% of its ADP allocation, the Ministry of Science and Technology 72.98%, and the Ministry of Agriculture 71%.