ADP spending rises 32pc
The government's development spending rose 32.11 percent year-on-year to Tk 44,331 crore in the first six months of 2017-18 thanks to the increased use of foreign aid.
Project aid utilisation increased by more than 124 percent year-on-year to Tk 19,918 crore, according to the Implementation Monitoring and Evaluation Division (IMED). In comparison, use of the government's own funds rose by 2.79 percent.
Interestingly, development spending by state-owned enterprises—a part of the country's annual development programme (ADP)— declined by 30 percent.
In the current fiscal year, the total size of the ADP was Tk 164,085 crore. Its implementation slightly declined due to decreased use of the own funds of the government and the state-owned enterprises.
In six months to December 2017, the ministries and divisions spent 27.02 percent of the ADP allocation, down from 27.20 percent or Tk 33,554 crore spent in the same period previous year.
Project aid utilisation in ADP stands at 32.97 percent of the allocation while it was 22.15 percent in the same period a year ago.
However, the rate of spending from the government's own resources was much slower.
Allocation from the government's own fund in the ADP was Tk 95,515 crore, of which 23.42 percent was spent. It was 30.77 percent in the corresponding period last fiscal year.
The spending, however, rose in terms of amount -- Tk 22,365 crore against Tk 21,757 crore a year earlier.
State-owned enterprises utilised only Tk 8,154 crore or 4.97 percent of the allocation from their own resources which was Tk 12,646 crore or 10 percent during the same period last fiscal.
Of the 15 large ministries and divisions that account for 80.83 percent of the allocation, five spent a higher amount than the average.
The power division spent the highest 57.02 percent followed by the local government division 36.27 percent, the ICT division 33.36 percent, the agriculture ministry 33.34 percent, the road transport and highways division 30.14 percent, and the primary and mass education ministry 24.93 percent.
On the other hand, some ministries and divisions that have been implementing a number of mega projects had a lower implementation rate than the average progress of 27 percent.
One of them is the bridges division, which is implementing a number of mega projects including the Padma bridge. The division could spend only 23.60 percent of the allocation it received in the July-December period.
The railways ministry also implemented only 10.91 percent against an allocation of over Tk 12,397 crore, of which Tk 7,000 crore is meant for the Padma rail link project.
An official of the ministry said China Exim Bank would finance the Padma rail link project. But with the loan agreement yet to be signed between the railways ministry and the Chinese Exim Bank, work is not progressing at the desired rate.
The budget set aside Tk 10,502 crore for the science and technology ministry, with a majority of the fund going to the Rooppur nuclear power plant project.
In the first six months, the ministry spent only Tk 1,950 crore, which is 18.56 percent of the allocation.
The health services division spent 20 percent, the secondary and higher education division 22.50 percent, the housing and public works ministry 20.94 percent, the shipping ministry 14.96 percent, the energy and mineral resources division 19.79 percent and the water resources ministry 14.96 percent.