Progress in implementation of the annual development programme (ADP) remained in slower track in the first 11 months of the current fiscal year.
The ADP implementation in July-May period of the outgoing fiscal year slipped on the back of poor money spending from local resources segment, according to latest official data.Different public sector implementing agencies registered 62.81 percent ADP execution rate during July-May period, the second lowest performance in five years, with Tk 98,978 crore overall spending, according to Implementation Monitoring and Evaluation Division (IMED) figures.
One year ago, the rate was 64.72 percent of total ADP outlay. During the previous three fiscal years the ADP implementation rates were 62 percent, 67percent and 66 percent respectively.
However, year-on-year expenditure growth was found to be 28.20 percent over Tk 77,204 crore total expenditure in the same period in 2016-17 fiscal year even though the performance fell in terms of percentage.
Local resource utilisation rate slumped to five-year low level of 58.97 percent whereas the rate soared to 66.39 percent during the period last year from 61 percent in the previous year. Total spending from local resouce segment was Tk 56,807 crore, up from Tk 51,584 spending a year earlier when local fund utilisation saw signs of improvement.
Foreign resource utilisation, on the other hand, rose to 71.47 percent with Tk 37,201 crore spending, up from 58.15 percent or Tk 20,815 crore in July-May period in FY17.
In March this year, the government had to trim its original ADP outlay to Tk 1,57,594 crore including Tk 96,331 crore from local resources and Tk 52,050 crore from foreign money.Project aid utilisation gained momentum recently after it passed a sluggish time following July1 Gulshan attack in 2016-17FY that sent a wave of panic among foreign nationals stationed in Dhaka including project officials, severly hampering aided project implementation.
Both the finance minister and Economic Relations Division (ERD) secretary hoped to touch a landmark of $6 billion project aid utilisation in 2017-18 fiscal year.
Top 15 ministries of division posted 64.58 percent overall utilisation rate with total spent amount reaching Tk 87,200 crore.
Power division posted the highest implementation performance of 91.93 percent followed by science and technology ministry’s 75.13 percent and 74.25 percent posting of housing and public works ministry.