ADP implementation 'very slow' in first nine months
Tuesday, 28 April 2009
FHM Humayan Kabir
Government agencies have spent 41 per cent of the total development budget in the first nine months of the current fiscal, officials said Monday.
The agencies have spent only Tk 104.95 billion during July-March period against total allocation of Tk 256 billion in the annual development programme (ADP) budget of current financial year 2009, planning ministry officials said.
The implementation rate was poor during the same period in fiscal 2008 when only 36 per cent of the money was spent by the executing agencies.
"It's very unfortunate. It's shameful for us. The agencies have failed to utilise even half of the ADP fund. How long will we allow such inefficiency to continue?" a senior planning ministry official said asking not to be named.
He said: "In the name of the anti-corruption drive and high price of construction materials in the international markets, the ADP implementation rates were comparatively slower in the last couple of years. But why now?"
Following the dismal picture in project implementation, the planning ministry had already prepared a revised ADP trimming down a good amount of funds from the total allocation of Tk 256 billion.
"The previous government took various measures including issuance of several circulars and review of the projects from time to time aimed at speeding up the implementation process. But all went in vain," the official said.
Ten of the large spending ministries and divisions, which have received 79 per cent of the total ADP allocation, have also performed badly this year, the senior planning ministry official said.
"Look at the third largest development budget spender- power division- has implemented only 39 per cent of its projects. How can you expect improvement in public fund expenditure?" he said.
During the first three quarters (July-March) this fiscal, the power division has spent only Tk 13.42 billion of their total Tk 35 billion funds in the ADP.
The performance of the primary and mass education ministry and local government division are comparatively better than the others, the official said without elaborating much.
The first quarter (July-September) of the current financial year 2009 started dismally, as only nine per cent projects were implemented.
From the second quarter (October-December) the project implementation activities gained pace as the agencies spent another 15 per cent during the period.
After spending 17 per cent of the total Tk 256 billion ADP outlay by the government ministries and divisions in the third quarter (January-March) the implementation rate accounts for 41 per cent.
It means the government has to spend 59 per cent of its tiny development budget in terms of the country's gross domestic products (GDP) in the last quarter (April-June), if it wants to invest the whole ADP funds, the planning ministry official said.
"Investment, job creations and other development activities of the country mainly depend on the improvement in the infrastructure. But if the ADP funds are not spent fully, how can we develop our infrastructure?" he said.
When asked about the poor performance, the planning ministry official said inefficiency and procrastination of the administration, lengthy public procurement system and complex fund release process by the donors are the main reasons behind the poor performance in project implementation.
Government agencies have spent 41 per cent of the total development budget in the first nine months of the current fiscal, officials said Monday.
The agencies have spent only Tk 104.95 billion during July-March period against total allocation of Tk 256 billion in the annual development programme (ADP) budget of current financial year 2009, planning ministry officials said.
The implementation rate was poor during the same period in fiscal 2008 when only 36 per cent of the money was spent by the executing agencies.
"It's very unfortunate. It's shameful for us. The agencies have failed to utilise even half of the ADP fund. How long will we allow such inefficiency to continue?" a senior planning ministry official said asking not to be named.
He said: "In the name of the anti-corruption drive and high price of construction materials in the international markets, the ADP implementation rates were comparatively slower in the last couple of years. But why now?"
Following the dismal picture in project implementation, the planning ministry had already prepared a revised ADP trimming down a good amount of funds from the total allocation of Tk 256 billion.
"The previous government took various measures including issuance of several circulars and review of the projects from time to time aimed at speeding up the implementation process. But all went in vain," the official said.
Ten of the large spending ministries and divisions, which have received 79 per cent of the total ADP allocation, have also performed badly this year, the senior planning ministry official said.
"Look at the third largest development budget spender- power division- has implemented only 39 per cent of its projects. How can you expect improvement in public fund expenditure?" he said.
During the first three quarters (July-March) this fiscal, the power division has spent only Tk 13.42 billion of their total Tk 35 billion funds in the ADP.
The performance of the primary and mass education ministry and local government division are comparatively better than the others, the official said without elaborating much.
The first quarter (July-September) of the current financial year 2009 started dismally, as only nine per cent projects were implemented.
From the second quarter (October-December) the project implementation activities gained pace as the agencies spent another 15 per cent during the period.
After spending 17 per cent of the total Tk 256 billion ADP outlay by the government ministries and divisions in the third quarter (January-March) the implementation rate accounts for 41 per cent.
It means the government has to spend 59 per cent of its tiny development budget in terms of the country's gross domestic products (GDP) in the last quarter (April-June), if it wants to invest the whole ADP funds, the planning ministry official said.
"Investment, job creations and other development activities of the country mainly depend on the improvement in the infrastructure. But if the ADP funds are not spent fully, how can we develop our infrastructure?" he said.
When asked about the poor performance, the planning ministry official said inefficiency and procrastination of the administration, lengthy public procurement system and complex fund release process by the donors are the main reasons behind the poor performance in project implementation.