In the first eight months of the current financial year (FY), only 34 per cent of the government's development budget could be implemented. The rate of 'implementation', according to a report published in the Financial Express last Sunday, was the lowest in five years.
But the policymakers need not be worried about the slow pace of implementation. The executing agencies would have one magic wand each in the remaining months of the fiscal to push the 'implementation' rate to above 90 per cent. The ADPs of the past years bear the testimony to that fact.
True, the rate of execution of development projects in the first eight months of this fiscal has been lower than that of any recent year. But the problem of slow execution of ADP has always stirred up worries among the policymakers. Development experts at home and multilateral donor agencies have been drawing the attention of the government to this chronic problem. But the situation has not improved a bit. Rather the opposite has happened this year.
There is also doubt even about the rate of execution of development projects during the first eight months, as claimed by the Implementation, Monitoring and Evaluation Division (IMED). The implementation status is given on the basis of the money 'spent' by the respective ministries and other agencies. But none knows for sure the actual physical progress of the projects that come under review. Spot verification might reveal discrepancies between the money 'spent' and the actual physical progress.
The dismal performance in relation to ADP execution, in fact, highlights the weaknesses on the part of different ministries and other government agencies in project execution. Last year 'political troubles' were largely blamed for poor rate of ADP execution. But this year that problem has not troubled anyone.
It seems that the government agencies do not have the capacity to execute an ever-expanding development programmes. The government every year increases its allocation against development projects. But the capacity of the ministries and other agencies under them has not been expanded to cope with the greater thrust on development activities. Traditionally, they are poor performers. With an increased load, their performance has gone down further.
What is more worrying this fiscal is that the rate of utilization of local resources earmarked for different development projects was much lower compared to that of any previous fiscal. There was always problem with utilization of foreign project aid. But the agencies have been relatively prompt in the utilization of local funds.
The policymakers do often talk about scarcity of resources when it comes to development. But an estimated $21 billion worth of external development assistance is awaiting utilization by the government. The failure of the public sector agencies to use the same has been responsible for accumulation of such a huge amount of money in the aid-pipeline. The procedural complexities at the donors' end are blamed for poor utilization of aid money. That may be partially true. But the government's executing agencies have to share the major part of the blame. Most of them are inefficient and inept, to say the least.
The World Bank, the Asian Development Bank and the Japan International Cooperation Agency (JICA) would be handing over substantial volume of aid money to Bangladesh over the next few years. The lack of capacity to utilize the same would make the pipeline swell further.
The situation with the execution of the government's development programme is rather paradoxical. The public sector implementation machinery does suffer from inexcusable sloth during the most part of a financial year as far as implementation of development projects is concerned. But the same machinery demonstrates super ability in the final months to take the rate of implementation to an otherwise impressive level.
Many, however, suspect foul play on the part of a section of unscrupulous officials and contractors concerned when all efforts get concentrated on completion of projects, even at the cost of quality. It is alleged that the relevant people make delays deliberately so that they could accrue undue benefits from the last-minute thrust on execution of development projects.
This unscrupulous section of people does usually compromise with project quality. They get away with their misdeeds, in most cases. But the development partners, lately, are keeping close watch on the quality of the projects that are financed by them. Already they have cancelled aid money worth millions of dollar given against a number of projects.
The policymakers have talked enough highlighting the need for streamlining the development administration to help timely execution of development projects. But actions matching their words have not come by until now. Every development execution agency does need to be geared up with both manpower and logistics to help better their performance. Otherwise, the situation will continue to be the same in the coming days.
© 2024 - All Rights with The Financial Express
