ADP spending hits four-year high
Public expenditure through the Annual Development Programme (ADP) increased and touched a four-year high in the first quarter of the current fiscal year as the pace of project execution by large ministries has accelerated.
Government agencies spent Tk 19,559 crore in the July-September period, which was 8.26 per cent of the total allocation of Tk 2.36 lakh crore for the whole year.
Ministries and divisions were able to implement 8.06 per cent of the total development expenditure in the same period a year ago, shows data from the Implementation Monitoring and Evaluation Division (IMED).
Increased implementation pace of fast-track projects, which had previously been in the slow lane for reasons including the coronavirus pandemic, contributed to the higher development expenditure.
The industries ministry spent the highest percentage of funds allocated for development schemes. The pace of implementation by the health services division slowed in the July-September period.
The health ministry, which has come under an increased scrutiny over the last one and a half years to protect lives by combating the pandemic, could spend only 2.33 per cent of the total fund of Tk 13,000 crore in the first quarter of 2021-22.
The health services division got the fifth highest allocation out of the total ADP outlay this fiscal year. It managed to spend 4.3 per cent of the total allocation in the same time last fiscal year, as per IMED data.
The implementation performance of the power division and the road transport and highways division also deteriorated in July to September compared to the same period a year ago. The power division, which accounts for 11.85 per cent of the total ADP fund, spent 8.93 per cent of its allocation.
The road transport and highways division accounted for 11.84 per cent of the total ADP, and its total spending was 8.72 per cent of the overall allocation, according to data.
The financial progress regarding ADP implementation by the industries ministry was 19.89 per cent in the July-September period.
Khondaker Golam Moazzem, research director of the Centre for Policy Dialogue, says implementation historically remains low in the first quarter of a fiscal year for some traditional bottlenecks such as the delayed release of funds by the finance ministry.
"It appears that traditional challenges remained unchanged as improvement is not significant," he said. According to the economist, the implementation of projects under the ADP brings a positive effect on the linkage sectors.
"As such, activities increased in those sectors, putting a positive impact on jobs. It also contributes to the government's revenue collection."
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