Published on 12:00 AM, June 09, 2017

Editorial

Mismatch in fund allocation and utilisation

Why increase allocation for ADP?

Every year the government misses the mark in utilising what it allocates into the annual development programme (ADP). Yet, what is disappointing further is that we never get an explanation as to why there is such significant under utilisation of funds and why project completion is continually delayed.

In the current fiscal year, the government managed to spend only 65 percent of their development budget in the first 11 months. It is a 4 percent increase from last year and at this rate it will take the government years to achieve 100 percent implementation. Moreover, despite the improvement, 35 percent of allocation still remains unused. What is the rationality for this mismatch?

As funds often sit idle, we regularly see reckless spending towards the end of fiscal years to bring the amount of unused funds down. This naturally hampers the quality of work and results in mismanagement of funds. And yet the government has again significantly increased ADP allocation for next year. Shouldn't the concerned ministries have to answer for their specific failures to utilise the fund?

And what, if any, direction has the government formulated for better utilisation?

Shouldn't there be comprehensive assessments to find the problems that are holding development programmes back?

What is worse is that the unutilised funds could easily have been used in sectors that are in desperate need of greater budgetary allocation. And if the government is insistent on allocating more funds for ADP, we hope that it will be spent more efficiently and with better results.