Sunday, 5 December, 2021

ADP rebounds in Q1

  • Staff Correspondent
  • 20 October, 2021 12:00 AM
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ADP rebounds in Q1

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Execution of the government’s yearly development plan bounced back in the first quarter from a corona-induced primary slowdown, after foreign resource utilization gained momentum along with local money. 

ADP implementation surged to 8.26 percent during July-September period, the highest in four years, as total expenditure rose to Tk 195.59 billion, latest implementation monitoring and evaluation (IMED) data. 

Year-on-year expenditure grew by Tk 22.58 billion or 13.05 percent from 8.06 percent implementation rate with Tk 173.01 billion total ADP spending one year ago.

In the first two months of FY22, pace of development work accomplishment slipped to 3.82 percent from 3.89 percent during the same period a year earlier as foreign project money spending hit five-year low at 2.28 percent.

Despite remaining somewhat low at 7.21percent compared to last fiscal’s 7.74 percent for the period, spending from project assistance improved to Tk 63.44 billion from Tk 54.58 billion.

Local resources utilization, on the other hand, rose to 9 percent with Tk 123.58 billion total expenditure from 8.37 percent or Tk 112.74 billion one year ago.

In September, ADP expenditure stood at 4.44 percent or Tk105.06 billion, up from 4.17 percent or Tk 89.50 billion for the period in FY21.

Besides these two segments, autonomous public corporations’ ADP performance improved as well to 7.47 percent in the first three months which was 6.02 percent in FY21, IMED data showed. 

Top 15 ministries or divisions that fetched 83.83 percent resources managed to post 8.48 percent average ADP performance by spending a total of Tk 168.33 billion.

Of them, industries ministry could spend the highest 19.89 percent ADP money, followed by railways ministry’s 2.93 percent and water resources ministry’s 10.88 percent ADP performance so far.

Top allocated local government division registered 9.96 percent, secondary and higher education division 9.27 percent, power division 8.93 percent, road transport and highways division 8.72 percent, bridges division 8.71 percent, but health services division lagged far behind with only 2.33 percent.    

Still 18 ministries or divisions lagged behind as their implementation performance could not cross 5 percent mark.

The government had announced Tk 2,367.93 billion ADP outlay for the current fiscal year, including Tk 1,373 billion from GoB money and Tk 880.24 billion from overseas project assistance.

ADP implementation showed some signs of improvement in the last fiscal year despite the fact that it was still one of the lowest in three decades because of the disruption caused by the coronavirus pandemic and structural weaknesses.

The pace of execution sank to a 27-year low at 80.18 percent in FY20 as projects halted for two months in April and May last year after the government was compelled to enforce a countrywide shutdown to curb the rising cases of infections.

It modestly rose to 82.21 percent in the last fiscal year of 2020-21 after the government spent Tk 1,720.51 billion out of the Tk 2,092.72 billion set aside for the ADP projects, according to IMED data.

It was nowhere near the average implementation rate of 90 per cent in the pre-pandemic level and was, in fact, the third-lowest since FY1993-94, suggests Bangladesh Economic Review.