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Austerity skews ADP implementation rate

Spending slipped to four-year low at Tk 13.22 billion in July

  • Staff Correspondent
  • 30 August, 2022 12:00 AM
  • Print news
Austerity skews ADP implementation rate

Implementation rate of the Annual Development Programme (ADP) dropped to four-year low with only 0.96 percent in July, the first month of the ongoing  fiscal year 2022-23, apparently due to the government's austerity measures.

Even during the two years of Covid-19 pandemic and subsequent years, the rate was more than 1 percent or close to 2 percent, according to the data provided by the Implementation Monitoring and Evaluation (IMED).

ADP execution rate was 1.14 percent during the first month of last fiscal year while it was 1.52 percent and 1.84 percent after July in the previous two fiscal years.

Not only that, the volume of expenditure slumped by 91.16 percent year-on-year to Tk 24.55 billion from Tk 26.93 billion.

In the previous two fiscal years marred by the coronavirus pandemic, the monthly ADP expenditure in July was Tk 32.54 billion and Tk 39.51 billion.

IMED officials say the government has taken austerity measures in releasing ADP project allocations from July 01 on the back of global crisis caused by the Russia-Ukraine war, reflecting in the ADP expenditure.

The government has set a priority for releasing funds for ADP in the current fiscal year, while stopping fund release for some less-priority schemes to offset the fiscal crisis the country is going through now.

IMED data showed that the spending of the government of Bangladesh slipped to four-year low at Tk 13.22 billion or 0.89 percent of the allocation in the first month, down from Tk 22.11 billion or 1.61 percent one year ago.

Local resource utilisation rate was 1.18 percent, down from 1.77 percent in the previous two fiscal years with Tk 15.84 billion and Tk 23.16 billion respectively.

Utilisation of Official Development Assistance (ODA), on the other hand, rose to Tk 9.76 billion or 1.06 percent of the project assistance allocation, which was 0.52 percent or Tk 4.59 percent a year earlier.

However, spending from project assistance was higher in the previous fiscal years although the volume of expenditure was slightly low at Tk 6.74 billion in FY 2018-19.

Out of all the ADP implementing agencies, Local Government Division (LGD) managed to spend the highest amount, Tk 9.84 billion, while the ministries could not spend a penny and 18 ministries failed to spend from the government funds.