Development spending lowest in six years

Development spending in the first seven months of fiscal 2015-16 was the lowest in six years, despite attempts by the government to accelerate implementation of projects.

Between July last year and January this year, Tk 27,542 crore was spent from the total outlay of Tk 97,000 crore of the annual development programme.                          

Some Tk 25,858 crore, or 32 percent of the total outlay, was used up in the first seven months of last fiscal year, which coincided with three months of political turmoil.

In other words, even though there was no political turmoil, ADP implementation in the July-January period was about 4 percentage points lower at 28.39 percent from a year earlier.

Planning Minister AHM Mustafa Kamal took several steps in the last two years for quick implementation of ADP but the situation did not improve.

In the total ADP allocation, the share of foreign aid was Tk 34,500 crore, or 34 percent. 

In the first seven months, foreign aid utilisation was Tk 8,385 crore, which is 24 percent of the total outlay -- and is the lowest in five years.

At this time last fiscal year, the utilisation of foreign aid was Tk 8,509 crore, or 31 percent of the total allocation.

Already different ministries have informed the Economic Relations Division that they will not be able to spend a total of Tk 5,865 crore of the foreign aid funds assigned to them.

At present, more than $21 billion of unused foreign aid has been lying in the pipeline.

The problem in utilisation of foreign aid was discussed at a meeting with Finance minister AMA Muhith in chair last week, an ERD official said.

A high-level committee has also been formed to find ways for quicker utilisation of foreign aid.

But the ministries are slow in utilising the government's own fund this time compared to the last several years, according to statistics from the Implementation Monitoring and Evaluation Division.

In the first seven months, Tk 19,157 crore of the government's own resources have been spent, which is 31 percent of the total allocation.

However, during the same period last fiscal year, 33 percent was spent, and 35 percent in the year before.

Every year, ADP allocation was raised bowing to the pressure from the ministries and divisions, but the efficiency of implementation has not been improving to that extent, said a planning ministry official.

The pace of implementation of five out of the ten large ministries and divisions that got 73 percent of the total ADP allocation is very slow.

The water resources ministry managed to use up 18 percent of its allocation, energy and mineral resources division 23 percent, health and family welfare ministry 20 percent, bridges division 23 percent, railways ministry 19 percent.

However, the other five ministries' implementation was higher than the average implementation rate.

The power division spent 32 percent, the local government division 40 percent, road transport and highways division 37 percent, primary and mass education ministry 35 percent and education ministry 30 percent.