The government has spent only 33 per cent of Tk 658.72 billion development budget in the first seven months of the current fiscal. This is five percentage points lower than that of the corresponding period last fiscal, officials said Tuesday.
The government ministries and agencies utilised 38 per cent of Tk 550 billion Annual Development Programme (ADP) in the same period (June to January) of the last financial year (FY) 2012-13.
An Implementation Monitoring and Evaluation Division (IMED) official said the government agencies spent Tk 218 billion, 33 per cent of the Tk 658.72 billion outlay of the ADP, in the June-January period of the current FY2014.
"The political turmoil in the third quarter of the current fiscal hit the development works of the government hard. It affected the overall project implementation," a senior IMED official told the FE Tuesday.
He said they are hopeful of striking a big boost in development project implementation in the remaining period of the current financial year as many key ministries have demanded higher funds in the revised ADP, which is under preparation.
The government ministries and divisions have shown their higher capability in spending the funds allocated from its internal resources rather than the funds from the external sources.
According to IMED data, the implementing agencies have spent 35 per cent or Tk 142.78 billion of Tk 413.09 billion allocations from the internal resources while only 30 per cent or Tk 75.79 billion of Tk 245.63 billion allocations from the external resources in July-January period this fiscal.
The poor spending rate from the external resources (project aid) has affected overall foreign aid inflow into the country.
The Bridge Division is the worst performer in executing its projects due to failure in implementing the US$2.9 billion Padma Bridge project, a senior IMED official said.
The government has allocated total Tk 68.88 billion for the Bridge Division, where the major portion of Tk 68.52 billion has been allocated for the Padma Bridge project.
A top IMED official said the Housing and Public Works Ministry and Energy and Mineral Resources Division have also been placed at the list of the poor performers of the government for their poor fund utlisiation rate.
The Local Government Division (LGD), highest development fund holder, however, has performed better during the first half of the current FY2014, IMED officials said.
General Economic Division (GED) Member Professor Shamsul Alam said they are hopeful of a rise in the ADP implementation in the remaining months of the current fiscal.
"Since the political turmoil is over, weather condition is good and the government's monitoring of project execution has been speeded up, overall project implementation would pick up," he told the FE.
Prof Alam said the utilisation of the development budget outlay would have to be increased to achieve the target 7.2 per cent economic growth this fiscal.
