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ADP implementation hits snag in July

  • Staff Correspondent
  • 27 August, 2021 12:00 AM
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ADP implementation hits snag in July

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Annual Development Programme (ADP) implementation faced a hiccup in the first month of the current fiscal year mainly thanks to fresh spell of corona crisis in the country that had an adverse impact on aided projects. 

The development budget execution slowed down to 1.14 percent in the month of July of FY22, which was 1.52 percent in the first month of FY21, latest implementation monitoring and evaluation division (IMED) data showed.

Year-on-year expenditure witnessed 17.24 percent negative growth to Tk 26.93 billion last month, which was Tk 32.54 billion one year ago.

ADP spending from local resource allocation rose to 1.61 percent with Tk 22.11 billion total expenditure in this segment compared to 1.18 percent or Tk 15.84 billion local resource utilisation in July 2020.  

Project assistance utilisation rate, on the other hand, slumped to only 0.52 percent or Tk 4.59 billion, much down from 2.05 percent or Tk 14.45 billion spending from foreign resources allocation during the same period a year earlier.

IMED officials say aided project implementation suffered a lot during the pandemic and the slowing trend still continues as many foreign project experts and workers could not join the project sites due to corona restrictions in their home countries.

Autonomous public corporations also show very poor ADP performance in the first month, registering only 0.20 percent implementation performance with Tk 220 million spending this fiscal so far. A year earlier, their ADP performance was 2.38 percent or Tk 2.25 billion.  14 ADP implementing agencies could not spend a single penny in the first month whereas a large number of agencies managed to spend nominal amounts, suggest IMED data.  Top 15 large ministries or division that fetched nearly 84 percent ADP money managed to post an average 1.20 percent ADP performance during the first month of FY22.

Of them, bridges division was the best performer that managed to spend 4.01 percent allocation, while local government division, which received the highest 14.32 percent allocation in FY22’s ADP, came second with 3.58 percent ADP implementation performance.

Power division and road transport and highways division could achieve 1.07 percent and 1 percent performance respectively while the rest of large agencies could not spend 1 percent and some even failed to spend any money.