The implementation of the Annual Development Programme (ADP) has shown signs of improvement after 11 months of outgoing FY21 even though total spending managed to cross only the halfway mark.
Execution of the government’s development outlay rose to 58.36 per cent during the July-May period from 57.37 per cent one year ago, suggests the latest data of Implementation, Monitoring & Evaluation Division (IMED).Year-on-year ADP expenditure grew by 5.81 per cent to Tk 1221.31 billion from Tk 1154.21 billion a year earlier mainly driven by a sharp rebound in overseas project assistance (PA) utilisation.
Project watchdog IMED argues that although the overall financial progress of ADP remained below 60 per cent after 11 months, real ADP progress is much higher at this moment as the money spending figures do not reflect the ground reality.
“What you see now is actually financial progress. The real progress is much higher,” IMED Secretary Pradip Ranjan Chakraborty told the Daily Sun on Monday.
In general, real or physical progress remains at 70 to 75 per cent when financial progress is shown 40 per cent as bills of a large volume of development work remains unpaid at that moment, he explained.
“I hope that we’ll be able to showcase better ADP execution results in the outgoing fiscal year compared to that of last fiscal year,” the IMED secretary insisted.
Usually, in the fourth quarter many ADP projects go through procurement process involving test runs or commissioning, he said.“Bills against these projects are paid at the fag end of the fiscal year, which helps shoot up ADP implementation at the financial year is over,” Chakraborty further explained.
Internal Resources Division (IRD) has been facing some litigation problem, which has declined its performance to 9.10 per cent, the lowest for any agency after 11 months.
“IRD is facing some legal problems. I’ve talked to the NBR Chairman on several occasions and he told me that they would be able to show some good performance at the end of the year,” the IMED secretary said.
A month earlier, ADP implementation was 49.09 per cent, even below 49.13 for the first 10 months of corona-hit FY20’s. Resource utilization from both local and foreign money also slipped.
However, both the local and foreign resource utilization improved after a month with spending from PA gaining more. In May, spending soared to 9.27 per cent or Tk 194.01 billion from 8.24 per cent or Tk 165.81 billion one year ago, IMED data showed.
After 11 months, the project assistance utilization rate improved to 62.70 per cent with Tk 394.98 billion total spendings from this segment, much higher than 55.23 per cent or Tk 342.41 PA spending in July-May of FY20.
Local resource utilization, on the other hand, modestly gained to 58.91 per cent from 58.20 per cent while expenditure volume grew more to Tk 793.14 billion from Tk 761.98 billion.
Top 15 ministries or divisions that fetched 84.63 percent RADP money in FY21 could spend mostly 58.91 percent of their total allocated money.
Science and Technology ministry, tasked with the construction of the country’s largest Rooppur nuclear power plant, posted the highest ADP implementation rate of 74.43 percent followed by bridges division’s 71.64 percent and power division’s 68.91 percent.
Local government division managed to post 63.03 percent performance, secondary and higher education division 63.56 percent, water resources ministry 60.44 percent, railways ministry 59.11 percent and road transport and highways division saw 58.91 percent progress in ADP implementation.
The health services division also remained a slow performer as it managed to spend only 31.38 percent or Tk 37.59 billion out of Tk 117.79 allocation in the revised ADP against its 53 projects.