ADP picks up speed

The implementation rate of annual development programme (ADP) has turned around to reach 16 percent of allocation in the first four months of the current fiscal year -- the highest in the last four years.
An ambitious ADP of Tk 30,500 crore was taken for fiscal year 2009-10, whereas expenditure stood at Tk 4,939 crore in the first four months.
In the July-October period of FY2009, FY2008 and FY2007 the implementation rates were 13 percent, 11 percent and 14 percent respectively.
Officials at the Implementation, Monitoring and Evaluation Division (IMED) said the prime minister holds Executive Committee of the National Economic Council meeting every week and lays emphasis on ADP implementation.
The premier in different government meetings also stresses the issue, which creates a moral pressure on the ministries. So the implementation rate is increasing gradually, the officials said.
The ministries hold ADP review meetings every month, having a positive impact on ADP implementation. The officials said if the rate gains a momentum, ADP implementation would be higher this year than the previous years.
The implementation rate of top 10 ministries or divisions that got 76 percent of the total allocation of ADP is better than others' average and they have achieved 18 percent of their allocation.
Primary and mass education ministry was the best performer with 33 percent implementation rate.
Energy and mineral resources division achieved 28 percent, agriculture ministry 24 percent, local government division 21 percent, education ministry 19 percent, health and family welfare ministry 17 percent and power division logged 14 percent.
But the rate of implementation by many other ministries and divisions is still poor with achievement of 2-10 percent. These include communications ministry, water resources, housing and public works ministry, industries ministry, post and telecommunications ministry, youth and sports ministry, and law, justice and parliamentary affairs ministry.
Finance ministry officials said the works on revised budget this time would be complete by December. The low performing ministries have been asked to surrender by December their ADP allocation that remained unspent.
The officials said the allocation would be increased for the ministries that showed higher implementation rates.
A report on budget implementation would be placed in parliament in January, they said.
According to IMED report, local resource utilisation rate is higher than that of foreign resources. Total local resource implementation in the first four months of fiscal 2009-10 was 17 percent and project aid implementation was 16 percent.
The ministry officials said the project aid implementation would increase, as 31 percent of the total allocation has already been released.