Published on 12:00 AM, April 03, 2014

ADP shouldn't be oversized

ADP shouldn't be oversized

Implementation capacity, oversight key

IT is learnt that the government is thinking of larger ADP allocation for the next fiscal year, which is likely to be 22 per cent bigger in volume than the current one. Ideally, one should rather take delight in the report than worry about it, because it is only expected that the budget and the corresponding ADP will progressively increase with the overall expansion of the economy every year.
But we are not living in an ideal world. So, can we ask what economic rationale has driven the government to go for this contemplated raise in the ADP's size next year?
It is worthwhile to note at this point that in the current fiscal too the government has effected a 19 per cent increase in ADP size over that of the previous fiscal year. But what is to be concerned about is that only 38 per cent of the ADP could be implemented in the first eight months of this year. As usual, there will be a race against time in the last quarter to complete the half-finished projects in haste. And the net result will be poor quality of the implemented projects and carry-overs for the next fiscal.
This uninspiring picture of ADP implementation is nothing new. Even so, with the advent of every new fiscal, one sees the same passion among some ministers and law-makers to have a bigger ADP giving little consideration for proper utilisation of the allocated funds.
It is hoped that the government this time will be more circumspect about ensuring that projects with economic merit get the better of the politically-biased ones. And not to repeat old mistakes, it should strengthen the capacity of the project implementing agencies under the different ministries. To ensure better oversight on project implementation, the Implementation, Monitoring and Evaluation Division (IMED) needs to be activated.