ADP spending rebounds after pandemic pause
Development spending rose 16 per cent year-on-year to Tk 8,950 crore in September in a reassuring development for the government desperately trying to give a leg-up to the economy reeling from the coronavirus pandemic.
This is the first positive growth since March this year as the expenditure from the annual development programme (ADP) dipped every month since then compared to a year ago because of the crisis, data from the Implementation Monitoring and Evaluation Division (IMED) showed.
ADP outlay in September last year was Tk 7,717 crore.
Greater use of foreign aid despite the government's halt on the release of the funds against the low priority projects drove the growth last month.
Between July and September, the ministries and divisions spent Tk 17,301 crore, which was 0.25 per cent down in the same period a year ago.
The spending in the first quarter was 8.06 per cent of the Tk 214,611 crore set aside for the current ADP. The expenditure in July and August was 3.89 per cent of the total development budget and it was 1.52 per cent in July.
The use of foreign aid rose more than 62 per cent to Tk 3,205 crore in September from Tk 1,976 crore in the same month a year ago.
Spending from the government's coffer edged up slightly to Tk 5,500 crore from Tk 5,459 crore in September last year.
In the first quarter, foreign aid spending was Tk 5,458 crore, which is 30 per cent higher than the same period last fiscal year.
The outlay was 7.74 per cent of the total foreign aid budget. It was 5.89 per cent of the allocation made for the same segment in the last fiscal year.
Of the total ADP this year, the government's contribution accounts for Tk 134,643 crore. Of the sum, 8.37 per cent was spent in the first three months. The implementation rate was 9.6 per cent a year ago.
Despite the pandemic and natural disasters such as floods, the project implementation has been good, said a planning ministry official.
The ADP implementation's return to positive territory came despite the government's restriction on the disbursement of funds for the low-priority projects since July. The move has been aimed at freeing up funds for the productive sectors amid widening revenue shortfall caused by the devastating impacts of the pandemic.
Recently, the finance ministry has softened its stance bowing down to pressures from the line ministries and also because of the improvement in revenue collection.
Now, 25 per cent of the allocation from the ADP would remain halted for the ministries because of the lingering pandemic, down from 30 per cent previously.
Of the 15 large ministries and divisions, which received 81.16 per cent of the allocation this fiscal year, four spent higher than the average.
The primary and mass education ministry achieved 14.35 per cent of the implementation target, followed by the power division with 12.81 per cent of its allocation.
The road transport and highway division spent 8.74 per cent of its allocation and the industries ministry 9.67 per cent.
The other 11 ministries and divisions' implementation rate is low.
For instance, several mega projects are being implemented under the bridges division but it managed to spend only 7.12 per cent of the allocation in the first quarter.
The budget for the health service division has been increased to enable it to tackle the crisis but the ministry too could spend only 4.31 per cent of the funds it received.
The science and technology ministry, which is implementing the Rooppur nuclear power project, spent 4.69 per cent, the local government division 6.74 per cent, the railways ministry 7.02 per cent, the housing and public works ministry 4.75 per cent, the water resources ministry 6.27 per cent, the shipping ministry 1.02 per cent, the civil aviation and tourism ministry 3.73 per cent, and the Prime Minister's Office 5.42 per cent.