Tuesday, 5 July, 2022

Economy recovers as ADP implementation continues

  • Staff Correspondent
  • 24 June, 2022 12:00 AM
  • Print news

Two-thirds of the Annual Development Programme (ADP) outlay remain unused as the fiscal year is about to end although the economy has showed some signs of recovery.

However, the ADP fund expenditure increased to 65.56 percent from 58.36 percent year-on-year during the July-May period, according to the latest official data. The expenditure is the highest during the Covid-hit years.

The volume of expenditure, on the other hand, grew by Tk 202.57 billion or 16.59 percent to Tk 1,423.88 billion compared to Tk 1,221.31 billion a year ago.

The ADP performance slipped to 57.37 percent in FY2019-20 which saw the first onslaught of the pandemic in its last quarter. In the previous year, the performance was nearly 68 percent.

However, this fiscal’s ADP accomplishment performance was not enough to break the very old practice of spending a barrage of money in the last quarter, particularly in the month of June.

Economic analysts say such practice cannot ensure good governance as the eleventh-hour spending spree leads to wastage of public money and it cannot ensure quality of projects.

Both local and foreign resource utilisations improved, but foreign projects’ fund spending hit five-year high in the period as the implementation of them was put on top gear.

In local resources part, the ADP execution advanced 61.73 percent with Tk 844.60 billion total expenditure from Tk 793.14 billion or 58.91 percent a year earlier.

 The project assistance utilisation, on the other hand, jumped to 72 percent with Tk 505.75 billion of total expenditure from the segment.

One year ago, ADP performance in the segment was 62.70 percent with a total spending of Tk 394.98 billion.

 The overseas fund utilisation efficiency hit the bottom with 55.23 percent money spending in the period in FY2019-20, according to the Implementation Monitoring and Evaluation Division (IMED) data.

ADP fund expenditure of the projects owned by public corporations also hit five-year high at 73.28 percent with a total expenditure of Tk 70.54 billion.

 In the current fiscal year, the government announced an ADP of Tk 2,360 billion, which has been downsized to Tk 2,171.75 billion due to the implementing agencies’ inability to spend the planned money.

 However, the full execution of the revised ADP outlay will require Tk 24.92 billion expenditure per day in the month of June, which looks impossible.

  The planning ministry on several occasions said the ADP figures don’t reflect the actual picture as contractors are paid later even though the work makes much advances.

  Top 15 ministries or divisions that fetched over 83 percent of ADP fund managed to post 65.92 percent of an average ADP performance, which was higher than the national average.

 Industries ministry appeared top with 90.14 percent performance, followed by health services division’s 75.12 percent and power division’s 71.66 percent.

Local government division posted 70.85 percent, science and technology ministry 69.58 percent and railways ministry 67.05 percent, the data showed.