ADP spending rises
Although the overall implementation of the annual development programme (ADP) marked a rise in the first two months of the new fiscal year compared to the corresponding period a year before, the ADP implementation in the health service sector is still lagging.
The government managed to spend about Tk 9,053 crore from its ADP budget in July and August of the current fiscal year, up 8.4 per cent from around Tk 8,351 crore in the same period a year ago.
This means implementing ministries and divisions have so far spent 3.82 per cent of the Tk 236,793 crore set aside to carry out development activities in FY 2021-22, according to data from the Implementation Monitoring and Evaluation Division (IMED) under the planning ministry.
However, the health services division has been one of the low performing divisions that could spend only Tk 170 crore, which is 1.31 per cent of its total allocation of Tk 13,000 crore. Last year, the division spent Tk 283 crore, or 2.45 per cent, of the Tk 10,000 crore allocation in the corresponding period.
Performance of the health sector was also poor in last fiscal year. Despite giving special focus on the health sector amid the Covid-19 pandemic, the health services division could implement only 58 per cent of its total ADP allocation in the last fiscal year.
Although the government committed to take steps to increase development expenses, the health service division is yet to improve its implementation rate.
Of the overall ADP spending of Tk 9053 crore in the last two months, Tk 6,413 crore came from government funds while Tk 2,009 crore came from project assistance.
According to the monthly implementation progress report of IMED, the implementation of government funds increased 11.09 per cent compared to the previous fiscal while project assistance declined 10.79 per cent.
In the same period of the last fiscal year, the implementing entities could spend Tk 5,773 crore from government funds and Tk 2,252 crore from project assistance.
Among the 15 largest allocation receivers, the industries ministry was the top performer in the first two months as it achieved 13.78 per cent of its allocation, followed by the local government division achieving 7.47 per cent, bridge division 5.80 per cent, primary and mass education ministry 5.33 per cent, road transport and highways division 4.09 per cent.
Apart from the health services division, other low performing entities, including the science and technology ministry, achieved 1.92 per cent of its spending target while secondary and higher education division achieved 1.14 per cent, and the housing and public works ministry achieved 1.18 per cent.
The shipping ministry and water resources ministry could spend less than 1 per cent of their respective allocations in this period.