Sluggish large projects send Q1 ADP spending to 5yr low

October 30, 2014

The implementation rate of annual development programme hit its five-year low in the first quarter of this fiscal year as only 9 per cent of the total allocation was used in the July-September period. According to the data of the Implementation Monitoring and Evaluation Division of the planning ministry, 55 government ministries and divisions could spend only Tk 7,024 crore of Tk 80,315 crore ADP allocation in the period.
Planning ministry officials said that slow implementation of large projects like Padma Bridge and different power projects hit the ADP spending in Q1.
In the first quarter of the 2013-14 fiscal year, the ADP implementation rate was 11 per cent, in the Q1 of the FY 2012-13 it was 13 per cent and in the same period of the FY 2011-12 it was 11 per cent, according to the IMED data.
According to the statistics, the earlier lowest ADP implementation in the first quarter was in the FY 2010-11 when the implementation rate was 9 per cent.
Out of the 55 ADP implementing agencies, four ministries and division failed to spend any money in the period while 12 others could spend below 3 per cent of their respective allocation, the data released on Wednesday showed.
Planning ministry officials said that usually the ADP spending remains slow in the beginning of any fiscal year but picks up during the end.
They said the construction work of Padma Bridge was yet to start while the implementation of Metro Rail project was yet to begin taking the overall ADP implementation down.
Delay in fund release, appointment of project staff, land acquisition and lack of coordination among the ministries and divisions are the key reasons for low utilisation of the ADP money in the beginning of the fiscal year, they said.
Among the large ministries and divisions, Local Government Division spent the highest 16 per cent of the allocation, education ministry 13 per cent and primary and mass education ministry spent 11 per cent.
But the Power Division, which got the second highest allocation in ADP, could spend only 8 per cent of its fund, while the Bridges Division, which got third highest allocation, spent only 9 per cent in Q1.
The large 10 ministries and divisions in terms of allocation which got 72 per cent resources of total allocation could spend only 10 per cent in the first quarter of this fiscal year.
Foreign affairs ministry, Anti Corruption Commission, public administration ministry and Internal Resource Division failed to spend any money in the first quarter of the current fiscal year while science and technology ministry spent only 0.46 per cent of the allocation for it.

-With New Age input

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