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ADP hits snag after fund restriction

  • Staff Correspondent
  • 27 March, 2023 12:00 AM
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The tightening grip on public expenditure on the back of Ukraine war has had adverse impacts on Annual Development Programme (ADP) with its execution hitting 12-year low in first eight months.

ADP implementation hit the bottom at 32.10 percent in July-February period of 2022-23 fiscal year, which was 35.80 percent a year earlier, latest data of implementation, monitoring and evaluation division (IMED) showed.

Besides the share of allocation, the volume of expenditure also slipped by Tk 25.95 billion to Tk 821.70 billion from Tk 847.65 billion a year earlier. 

A drastic fall in local resource utilisation has actually overshadowed the overall ADP performance, while project assistance (PA) utilization rate improved modestly in July-February period.

However, both local and foreign money expenditures against ADP projects slipped in the month of February.

ADP execution rate was recorded at 3.94 percent last month with Tk 100.80 billion expenditure, down from 5.59 percent or Tk 132.32 billion expenditure posted in February 2022.

GoB’s money spending rate fell to 3.85 percent or Tk 58.86 billion from 4.85 percent or Tk 66.65 billion, while PA spending dipped to 4.34 percent or Tk 40.35 billion from 6.80 percent or Tk 59.83 billion.

At the outset of FY23, the government put a ban on local fund release for less priority ADP projects to offset external economic shocks coming from Russia-Ukraine war. This has reflections on ADP performance.

Local resources utilisation slumped to 30.22 percent in February from 36.12 percent one year ago, while total expenditure in this segment dropped to Tk 462.61 billion from Tk 495.94 billion a year earlier.

 Project assistance utilisation rate, on the other hand, modestly improved to 35.69 percent with Tk 331.90 billion expenditure compared to 35.54 percent or Tk 312.85 billion expenditure from PA one year ago, according to IMED data.

The Cabinet Division came top with implementing the highest 99.54 percent ADP in the first eight months, while religious affairs ministry posted 59.62 percent, energy and mineral resources division 56.83 percent, power division 47.78 percent, bridges division 47.19 percent and industries ministry 41.34 percent ADP execution rate.

Four ministries could not cross the double-digit mark. Land ministry managed to post 9.99 percent ADP performance, while defence ministry managed 9.77 percent.

Internal Resources Division or NBR could not implement even 1 percent ADP even though eight months have elapsed.

Top 15 ministries or divisions that received 82.67 percent resources in original ADP allocation posted 32.03 percent average performance.

Of them, power division posted the highest rate of 47.78 percent while bridges division achieved 47.19 percent and housing public works ministry 38.83 percent. The highest allocated local government division managed to post 37.12 percent ADP performance.