The government’s ADP performance has so far remained sloppy as usual as only one-fourth of the development outlay has been accomplished in the first half of FY20.
Even, the implementation rate slowed year-on-year to 26.37 per cent in July-December period from 27.45 per cent during the same period one year ago.Implementation Monitoring and Evaluation Division (IMED) data suggest that it was the second-lowest performance in the last six years after FY16’s 23.54 per cent.
It has become a trend for ADP performance that it remains below 30 per cent in the first half while getting an acceleration in the second half, especially in the last quarter.
So far, year-on-year expenditure growth was 14.25 per cent this year as implementing agencies spent Tk 70.74 billion more than Tk 496.45 billion total expenditure in the first half of FY19, IMED data showed.
The pace might not the enough to fully implement a mammoth Tk 2,151.14 billion ADP that the government had planned for the current 2019-20 fiscal year aimed at a higher public investment.
The Planning Commission has already started the process of curtailing the allocation on the back of bleak ADP performance shown by public agencies that grapple with execution capacity.
Planning Minister MA Manna, however, said they are not concerned about the ADP progress as the expenditure growth was satisfactory.“We’re not frightened at all with this ADP performance as our main focus is on the volume of expenditure which has grown this year,” he said.
The fall in ADP progress rate this year was predominantly caused by poor show in overseas project assistance (PA) segment, which is yet to get a pick-up.
The utilisation of foreign project funds slipped to a three-year low level of 24.37 per cent in December which was 29.72 per cent and 32.97 per cent in the last two fiscal years.
Total expenditure from PA allocation was higher at Tk 178.34 billion and Tk 199.18 billion during July-December period in FY19 and FY18, whereas it was lower at Tk 174.95 billion this year.
A total of 12 ministries or divisions could not even reach a double-digit mark in utilising foreign money with three failing to spend a single-penny, suggest the IMED figures.
Besides, public corporations’ own funded ADP implementation pace slumped to only 12.86 per cent which was as high as 36.92 per cent one year ago. Excluding these autonomous bodies’ performance, half-yearly ADP performance is slightly better at 27.19 per cent.
Local resource utilisation, on the other hand, improved to 28.74 per cent with Tk 376.29 billion total expenditure in this segment, which was Tk 289.05 billion or 25.58 per cent a year earlier.
According to the Economic Relations Division (ERD) officials, spending from GoB money is much easier than that from project assistance as donors’ money is tagged with some stringent conditions.
Implementing agencies find it comfortable in utilising local money, while it is tough to spend project assistance, they explained. Some 15 large ministries or division that fetched over 81 per cent ADP money managed to post 27.57 per cent average ADP performance so far this year. In FY19, top 15 allocated agencies’ average ADP performance was higher at nearly 30 per cent.
The Power Division has maintained a steady pace this year as it has been able to finish 41.87 per cent of its ADP, while secondary and higher education division managed 35.15 per cent, local government division 33.75 per cent, bridges division 29.12 per cent and road transport and highways division 28.71 per cent.
Among them, civil aviation and tourism ministry came out as the worst performer with 4.06 per cent performance followed by industries ministry’s 5.27 per cent and the shipping ministry’s 15.31 per cent show.