ADP implementation marginally fell in the first half of the current fiscal year thanks to a slump in local resources spending, even though the overall expenditure saw a decent year-on-year gain.
Total ADP spending stood at Tk 44,331 crore or 27.02 percent of the ADP outlay during the July-December period, slightly down from 27.20 percent posted a year earlier.This was the third lowest performance in five years in terms of percentage of ADP outlay, latest figures from Implementation, Monitoring & Evaluation Division (IMED) suggest.
However, this expenditure figure was 32.12 percent higher than Tk 33,554 crore overall spending in the first six months in 2016-17 fiscal.
“Although ADP spending fell in terms of percentage, year-on-year spending growth was quite significant,” commented Dr Zaid Bakht, a noted development analyst.
“This performance can be appreciated because the ADP size was much bigger this year. It also reflects that implementing agencies’ capacity has increased,” he added.
Local resources utilisation skewed to five-year low level of 23.42 percent in the period from 30.77 percent a year earlier, which was the highest performance in five years.
Spending from local resources gained only 2.79 percent year-on-year to Tk 22,365 crore from Tk 21,757 crore.Project aid utilisation, on the other hand, maintained its steady growth this year as it reached its peak in five years at 32.97 percent with Tk 19,918 crore spending.
It was a 124.86 percent gain over Tk 8,858 crore or 22.15 percent spending from PA outlay one year ago.
“It is a good sign that backlog in aid pipeline is being cleared with the improved aid utilization,” Zaid Bakht said.
Finance Minister AMA Muhith at a press conference on Monday informed that aid pipeline now increased to $37.6 billion.
Meanwhile, foreign fund disbursement saw a 94 percent year-on-year rise to $2.5 billion in first six months of the current fiscal, driven by mega projects and better execution capacity, whereas last fiscal’s total disbursement figure was $3.6 billion, ERD Secretary Kazi Shofiqul Azam said on Monday.
Top 15 implementing agencies managed to achieve 30.04 percent overall ADP execution performances with Tk 39,838 crore aggregate spending.
Of them, power division was the best performer with 57.02 percent posting, followed by local government division that posted 36.27 percent and ICT division which managed 33.36 percent.
Zaid Bakht also spoke of the problems that hinder ADP execution. “The problems are well-known,” he said, identifying those as related to appointment of consultants, land acquisition and inter-ministerial coordination.
He also stressed that only higher spending will not suffice. Ensuring quality of spending is also very important for which timely project implementation is an imperative, he suggested.