Ensuring immediate and efficient spending of ADP funds
Sunday, 2 December 2007
Slow pace of implementation of projects in the initial months and a bit of pruning of the Annual Development Programmes (ADPs) at the fag end of a financial year have been the hallmarks of the public sector development planning in Bangladesh. Either for resource constraint or for poor rate of implementation, the ADPs are finally downsized. And the one prepared by the interim administration for the current financial year is unlikely to be an exception. The adviser in-charge of the ministry of finance and planning has not also ruled out such a possibility.
In the past financial years, the rate of downsizing of the ADPs varied between 6.0 and 12 per cent. In spite of the frustration, reportedly, expressed by the Executive Committee of the National Economic Council (ECNEC) at its meeting last Thursday over the very slow pace of implementation of the projects-only 8.0 per cent-- between the months of July and September-- the downsizing of the ADP for the current financial year is unlikely to go beyond the previous rates. However, the slow pace of project implementation and possible downsizing of this year's ADP do not go well with the expectation of the most people who aspire to see better project selection and higher rate of implementation of the same under a non-political and neutral interim administration. The finance and planning ministers of past political governments had to keep the law makers across the political divide and many others satisfied while selecting projects for the ADP. In the process, lots of unimportant projects managed to sneak into the ADPs, depriving many priority projects of resources for their implementation. Since the present administration did not have to face difficulties of similar nature while formulating the present ADP, it is expected to perform better than its political predecessors.
The finance adviser talking to newsmen soon after the last Thursday's ECNEC meeting said the government at the moment is not thinking of downsizing the ADP to help offset the impact of the recent floods and cyclone. Given the situation now prevailing in the country, particularly in the context of the damage caused by the cyclone, Sidr, what is most important is the implementation of the ADP projects in full pace. Actually, the public sector is still the largest provider of employment in this country and the projects under the ADP are important means to offer the same to millions of job-hungry people, both in urban and rural areas. The concerned ministries, reportedly, blamed the disruptions created by the natural calamities for the poor rate of implementation of the current year's ADP. The inefficient bureaucrats manning various ministries and government agencies are otherwise efficient in inventing reasons in support of their failures. Investigations would reveal that even without any natural calamity, the implementation rate of ADP projects in the past years in the initial months was almost similar, if not worse. The months between December and March are the best time for implementation of development projects, particularly of those involving construction and earth work. The government should ask the ministries and others concerned to immediately gear up project implementation since funds are unlikely to be a problem for ADP implementation in view of the satisfactory flow of aid money for the relief and rehabilitation of the cyclone victims in the coastal districts. For better utilisation of development fund, the government should even consider changing the format of the existing financial year.
In the past financial years, the rate of downsizing of the ADPs varied between 6.0 and 12 per cent. In spite of the frustration, reportedly, expressed by the Executive Committee of the National Economic Council (ECNEC) at its meeting last Thursday over the very slow pace of implementation of the projects-only 8.0 per cent-- between the months of July and September-- the downsizing of the ADP for the current financial year is unlikely to go beyond the previous rates. However, the slow pace of project implementation and possible downsizing of this year's ADP do not go well with the expectation of the most people who aspire to see better project selection and higher rate of implementation of the same under a non-political and neutral interim administration. The finance and planning ministers of past political governments had to keep the law makers across the political divide and many others satisfied while selecting projects for the ADP. In the process, lots of unimportant projects managed to sneak into the ADPs, depriving many priority projects of resources for their implementation. Since the present administration did not have to face difficulties of similar nature while formulating the present ADP, it is expected to perform better than its political predecessors.
The finance adviser talking to newsmen soon after the last Thursday's ECNEC meeting said the government at the moment is not thinking of downsizing the ADP to help offset the impact of the recent floods and cyclone. Given the situation now prevailing in the country, particularly in the context of the damage caused by the cyclone, Sidr, what is most important is the implementation of the ADP projects in full pace. Actually, the public sector is still the largest provider of employment in this country and the projects under the ADP are important means to offer the same to millions of job-hungry people, both in urban and rural areas. The concerned ministries, reportedly, blamed the disruptions created by the natural calamities for the poor rate of implementation of the current year's ADP. The inefficient bureaucrats manning various ministries and government agencies are otherwise efficient in inventing reasons in support of their failures. Investigations would reveal that even without any natural calamity, the implementation rate of ADP projects in the past years in the initial months was almost similar, if not worse. The months between December and March are the best time for implementation of development projects, particularly of those involving construction and earth work. The government should ask the ministries and others concerned to immediately gear up project implementation since funds are unlikely to be a problem for ADP implementation in view of the satisfactory flow of aid money for the relief and rehabilitation of the cyclone victims in the coastal districts. For better utilisation of development fund, the government should even consider changing the format of the existing financial year.