ADP spending rises 31pc

The government's development spending rose almost 31 percent year-on-year to Tk 45,532 crore in the first eight months of the fiscal year, somewhat bucking the trend of previous few years.

Some Tk 123,346 crore has been allocated for the annual development programme this fiscal year, meaning the ministries and divisions used up almost 37 percent of the sum in the July-February period.

At this point last fiscal year, 34 percent of the total allocation was used up, according to the Implementation Monitoring and Evaluation Division.

ADP allocation increases every year, but its performance is evaluated by calculating the rate of implementation in comparison with the total outlay. The implementation rate this year is still low in comparison to the historical trend.

Development spending has been slow since fiscal 2012-13 in terms of percentage of the total outlay. In the first eight months of fiscal 2012-13, ADP implementation stood at 44 percent, with the rate progressively declining since.

Due to the slow implementation rate, the government on February 28 revised the ADP allocation downwards to Tk 119,295 crore.

According to the revised ADP, in the first eight months, the ministries and divisions could spend only 38 percent of the allocation, meaning they would have to spend about 62 percent of the outlay in the remaining four months of the fiscal year.

Although the spending of local funds increased, which was the main reason behind the rise in ADP implementation, the utilisation of foreign funds is still at par last year.

During the July-February period of the fiscal year, 42 percent of the government's own fund for the year was utilised, up from 37 percent managed by the ministries and divisions a year earlier.

However, foreign fund utilisation during the July-February period of fiscal 2016-17 stood at 30 percent, which was the same as last year at this point.

In light of the development, the government increased the allocation from its own fund by Tk 7,000 crore to Tk 77,700 crore. On the other hand, foreign fund allotment was slashed by Tk 7,000 crore to Tk 33,000 crore.

Only four of the ten large ministries and divisions that got 73 percent of the total allocation registered higher than the average implementation rate during the period.

They are: power division (50.64 percent), housing and public works ministry (53.35 percent), local government division (48.68 percent) and health and family welfare ministry (37.37 percent).

The other six ministries spent much lower than the average, with the bridges division managing only 21.63 percent implementation. The bridges division got most of the allocation for the construction of Padma bridge.

Since the spending was low, a slash in allocation for the division was proposed in the national economic council meeting.  However, the allocation was not revised, and it was decided that the bridges division will be given what it can spend.

A planning ministry official said although the expenditure in terms of money is low, the physical work of Padma bridge is going on in full swing.

Of the remaining large ministries, the railway ministry spent 28 percent, road transport and highways division 27 percent, primary and mass education 36 percent, secondary and higher education division 31 percent and water resources ministry 26 percent.

Among the 56 ministries and divisions, 29 managed lower than the average implementation rate of 37 percent.

Implementation by state-owned enterprises during the July-February period stood at 31 percent of the total outlay of Tk 12,664 crore. The implementation rate was 37 percent last year.