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ADP Implementation

Only 49pc of target achieved

Published : Tuesday, 18 May, 2021 at 12:00 AM  Count : 229

Only 49.09 percent of the Annual Development Programme (ADP) implementation target was achieved in the first 10 months (July to April) in the current fiscal year of 2020-21 due to Covid-19 outbreak.
It's less than the achievement of last FY. Last year 49.13 percent of the target was achieved during the same period, according to the statement of the Implementation, Monitoring and Evaluation Division (IMED).
According to IMED sources, Tk 209,272 crore was allocated in the current fiscal year for development projects.
Of this, only Tk 102,730 crore has been spent in 10 months from July to April. As such, the allocation for development projects is still Tk 106,542 crore. In order to implement      100 percent of RADP, more than half of the allocation will have to be spent in May and June.
Many wonder this may be yet another turbulent year when proper implementation of the ADP may suffer similar setback.  
Implementation of the ADP usually gathers pace in the closing of a fiscal year. But this time, almost all work remains suspended, signaling another poor finish in ADP utilization
Prof Mustafizur Rahman, former executive director of Center for Policy Dialogue (CPD), told the Daily Observer: "At the beginning of a financial year, ministries and divisions show least interests in ADP execution. But at the end of the year, they spend the budget quickly, which badly affects project quality."
He said the overall economy has been affected in the outgoing fiscal year. The ADP implementation rate decreased due to outbreak of coronavirus.
The planning Commission officials say this picture is very normal in the implementation of ADP. Towards the end of the fiscal year, the speed of other works including bill payment gains momentum.
As a result, the rate of implementation of ADP also increases towards the end. Sources in the Planning Commission think that up to 80 percent implementation can be done this year.
They said the coronavirus infection situation has contributed to the slowdown in ADP implementation in the current fiscal year and last fiscal year. Despite this transition situation, the picture of allocation of development programmes is not disappointing. According to the IMED report, the ministries and departments have been able to spend Tk 102,730 crore in the first 10 months of the fiscal year.
Of this, Tk 66,455 crore was spent from government funds, Tk 33,517 crore from foreign aid and Tk 2,758 crore from autonomous organizations' own funds. During the same period of the last financial year, the expenditure was Tk 98,840 crore.
IMED Secretary Pradeep Ranjan Chakraborty said the pace of implementation of the ADP was very slow from the beginning of the current fiscal year to March.
"But we have used the experience of the last fiscal year," he said adding, "That is why the implementation rate has started increasing since April."  Although progress has been slightly less in percentage terms than in the previous financial year, the expenditure has increased, he said.
Ranjan Chakraborty said there is still a lot of pressure on spending money. Even then, the implementation rate will increase towards the end of the financial year. Since, in case of construction work or purchase of products, the bills are not paid immediately.
In most cases, the bill is paid at the end of the financial year. "If the bills are paid, I hope the implementation of ADP will exceed 80 percent," he said.
The Ministry of Expatriate Welfare and Overseas Employment is leading the way in implementing the ADP in the first 10 months of the current financial year. The ministry has implemented 74.49 percent of the allocation in 10 months. At the same time, the Department of Implementation Monitoring and Evaluation (IMED) and the Department of Economic Relations (ERD) have implemented 70.47 per cent and 69.88 per cent, respectively.
Other ministries and departments that have spent more are the Ministry of Disaster Management and Relief (69.66 percent), Department of Technical and Madrasa Education (69.09 percent), Information and Communication Technology (ICT) Department (66.62 percent), Science And the Ministry of Technology (63.66 percent) and the Anti-Corruption Commission (63.12 percent).
The Internal Resources Department is lagging behind in the implementation of ADP in the current fiscal year.
This department has spent only 5.71 percent of the allocation in 10 months of the financial year. At the same time, the Ministry of Information and Broadcasting spent 15.64 percent and the Statistics and Information Management Department spent 19.13 percent.
Among other ministries and departments, Law and Justice Department implemented 23.94 percent, Health and Family Welfare Department Health Services Department 25.46 percent, Cabinet Department 26.55 percent and Youth and Sports Ministry 29.15 percent in 10 months of the financial year.
Dr Zahid Hussain, former lead economist of the World Bank's Dhaka office, said, the pandemic had changed the government priorities and the ADP implementation progress should be evaluated according to the new parameters.    
He added, priority projects may face a funding crisis if the revised ADP is based just on implementation. Additional allocations should be made for health, social security, rural infrastructure, education and economic recovery projects, considering the pandemic-led crises.

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