ADP spending hits five-year high in July

Development spending witnessed a five-year high in July, the first month in the current fiscal year, thanks to the power division’s outstanding performance in implementing the annual development programme (ADP).

Moreover, the amount was four times the sum spent in the corresponding month last fiscal year, according to a monthly progress report of the Implementation Monitoring and Evaluation Division (IMED).

A total of Tk 3,951 crore was spent in July, which accounted for 1.84 percent of the current fiscal year’s allocation. In comparison, Tk 1,027 crore was expended in the same month a year ago, which was 0.57 percent of the annual allocation.

In July in the past five years, the implementation of the ADP had been below 1 percent.

Planning Minister MA Mannan recently attributed the outstanding implementation to the outcome of some initiatives.

Once endorsed, the budget allocation against a project is going directly to the project director’s account, significantly increasing the implementation rate, he claimed.

All the ministries and division performed very poorly in July, except for the power division, which solely accounted for Tk 2,066 crore, 7.23 percent of the spending, IMED data showed.  

 The government has set aside Tk 215,114 crore for development projects, 81 percent of which is for 15 ministries and divisions.

Of them, the water resources ministry, the civil aviation and tourism ministry and the energy and mineral resources division could not spend any money in July. Six ministries and divisions spent less than one percent of the allocation.

It means that the performance of the implementing entities was as usual while five ministries were able to spend more than one percent of their allocation.

Disbursement of foreign aid increased in July as development partners released $391.10 million, more than double of $187.88 million recorded a year ago.