Austerity hits July’s ADP spending | The Daily Star
Skip to main content
T
Saturday, April 1, 2023
The Daily Star
E-paper Today's News বাংলা
  • Home
  • News
  • Opinion
  • Health
  • Sports
  • Business
  • Entertainment
  • Culture
  • Life & Living
  • Youth
  • Tech & Startup
  • Feature
    • Lifestyle
    • Arts & Entertainment
    • Showbiz
    • Star Health
    • Satireday
    • Shout
    • Toggle
    • Star Literature
    • In Focus
    • Star Youth
    • Shift
    • Daily Star Books
    • Roundtables
    • Star Holiday
    • weekend read
  • More
    • Environment
    • NRB
    • Supplements
    • Law & Our Rights
  • E-paper
  • বাংলা
Search Epaper T
  • Today's News
  • Home
  • News
  • Opinion
  • Health
  • Sports
  • Business
  • Entertainment
  • Culture
  • Life & Living
  • Youth
  • Tech & Startup
  • Feature
    • Lifestyle
    • Arts & Entertainment
    • Showbiz
    • Star Health
    • Satireday
    • Shout
    • Toggle
    • Star Literature
    • In Focus
    • Star Youth
    • Shift
    • Daily Star Books
    • Roundtables
    • Star Holiday
    • weekend read
  • More
    • Environment
    • NRB
    • Supplements
    • Law & Our Rights

  • About Us
  • Contact Us
  • Apps
  • Comment Policy
  • RSS
  • Sitemap
  • Advertisement
  • Newsletter
  • Privacy Policy
  • Conference Hall
  • Archives
Economy

Austerity hits July’s ADP spending

Rejaul Karim Byron , Md Asaduz Zaman
Thu Aug 25, 2022 09:00 AM Last update on: Thu Aug 25, 2022 09:38 AM

The government's austerity measures have hit implementation of the annual development programme (ADP) in the first month of the current fiscal year, with just 0.96 per cent of the total allocation being spent, the lowest in the last four years. 

This means ministries and divisions spent Tk 2,455 crore out of the total allocation of Tk 256,003 crore, according to data of the Implementation Monitoring and Evaluation Division (IMED) under the planning ministry.

For all latest news, follow The Daily Star's Google News channel.

In contrast, the rate was 1.14 per cent in July of fiscal year 2021-22 when the total allocation amounted to Tk 236,793 crore.

The last time the rate was lower than that of this fiscal year was in fiscal year 2018-19 when the rate was 0.57 per cent and the total allocation amounted to Tk 180,869 crore.

Sources said this slow implementation over four years back was due to it being an election year.

In the initial couple of months of a fiscal year, the implementation rate usually remains low according to past trends.

Moreover, this year saw the emergence of the Russia-Ukraine war for which the Finance Division issued a circular on austerity measures on the first day of the month of July, according to a planning ministry official.

The stance comes in the face of strained foreign currency reserves, higher global and domestic inflation, low fiscal space and ongoing concerns over the war.

As a part of the austerity measures, the ADP have been categories based on their importance as A, B and C.

A category projects will continue running as usual while up to 75 per cent of allocations for B category projects can be spent.

All C category projects have been put on hold but the ministries and divisions can re-route these allocations to A category ones.

While the notice has not articulated what constitutes an A category project or a C category project, The Daily Star has learnt from finance ministry officials that projects that would increase economic activities have been given the highest priority.

"About Tk 30,000-Tk 40,000 crore can be conserved in this way," said a finance ministry official, adding that import components of government-funded projects have been suspended.

In the amount spent in July of this fiscal year, there was more foreign assistance than government funds.

According to IMED statistics, in the current fiscal year, Tk 1,322 crore of government funds were spent, which is 0.89 per cent of the total government fund allocated for the year.

In contrast, use of foreign assistant stood at 1.06 per cent from Tk 92,020 crore.

Meanwhile, 15 ministries and divisions got 82.67 per cent of the total ADP allocations.

Of them, agriculture, water resource and primary and mass education ministries failed to spend any penny in the first month of the current fiscal year.

The shipping ministry and housing and public works have spent just 0.04 per cent of their allocation while the Prime Minister's Office spent 0.06 per cent.

However, the top performer was the local government division, spending 2.81 per cent, while the second position holder the power division (1.91 per cent). 

Related topic:
Annual Development Programme (ADP)Bangladesh austerity measures
Apple Google
Click to comment

Comments

Comments Policy

Related News

Foreign aid

Foreign aid use up 1.57pc in Jul-Aug

imported luxury items tax

Level-headed development targets

ADP Revision

ADP revision: Govt doing opposite of what’s needed

Bangladesh Government logo

Big boost for mega projects

Poor choices in ADP revision

১ ঘণ্টা আগে|রাজনীতি

‘যারা সরকারের বিরুদ্ধে কথা বলতে শুরু করেছে, তাদের ধরে নিয়ে গেছে’

‘আগাম নির্বাচন করে জাতিকে বোকা বানিয়ে তারা আগের মতো নিজেদের নির্বাচিত ঘোষণা করবে।’

২ ঘণ্টা আগে|অপরাধ ও বিচার

ধানখেতে গরু, বৃদ্ধ মালিকের কান কেটে ফেললেন প্রতিবেশীরা

The Daily Star
Journalism without fear or favour
  • About Us
  • Contact Us
  • Apps
  • Comment Policy
  • RSS
  • Sitemap
  • Advertisement
  • Newsletter
  • Privacy Policy
  • Conference Hall
  • Archives
© 2023 thedailystar.net | Powered by: RSI LAB
Copyright: Any unauthorized use or reproduction of The Daily Star content for commercial purposes is strictly prohibited and constitutes copyright infringement liable to legal action.
X