PC starts revising ADP amidst its poor execution

The Planning Commission (PC) has started work on revising the Tk 1.7 trillion Annual Development Programme (ADP) amid unsatisfactory execution of the ongoing projects during last five months of the current fiscal year (FY), officials said on Monday.
The PC has asked the ministries to incorporate 'important' new projects and seek necessary allocations for the implementation of the same within the current FY.
It has issued a guideline for the purpose and asked all the government ministries, divisions and agencies to follow it.
In the guideline, government agencies have been directed to cut allocations from the slow-progressing projects and divert the same to the fast-implementing ones.
Due to fund constraints, the PC officials said, they have asked the ministries and divisions to be cautious about the inclusion of fresh development projects in the revised ADP.
In last five months of this fiscal year, the government ministries and agencies could spend Tk 341.85 billion, only 20 per cent, of the total ADP allocation.
PC officials said some fund recipients including Ministry of Railway, Bridges Division and Roads and Highway Department (RHD) performed well during the period of five months (from July to November) of current FY.
Besides, some other large development fund-holders including the Ministry of Water Resources, Secondary and Higher Education Division, Ministry of Primary and Mass Education, and Ministry of Health failed to execute their projects at the expected level, said PC officials.
The government allocated Tk 1.13 trillion from its own sources while Tk 600 billion from external sources as project aid in the current year's ADP.
"We have already sent a guideline to the ministries and divisions. We have asked them to follow it and revise their development programmes and send it back to the PC by January 02 next. After getting those projects, we will start scrutinising those for fund reallocation," said a senior PC official.
He said many ministries and divisions including some major ones have failed to implement their projects according to their own action plans.
Besides, some of the government agencies are seeking higher allocations.
"We are very cautious about incorporating fresh projects into the upcoming revised ADP to ensure adequate fund allocations for the ongoing ones. This time, we want to ensure quality project execution," a PC member told the FE.
The government over the years has enhanced the development budget allocations manifold. The ADP size in last 11 years had swelled by more than seven times to Tk 1.73 trillion in the current FY 2019 from Tk 235 billion in FY 2008.
The commission has asked the government agencies to include only those foreign-aided projects which got confirmation of external funds through signing agreements or firm assurance of necessary funds from respective development partners.
It has suggested incorporating those schemes which will ensure linkage to prospective public-private partnership (PPP) projects.
The PC official said they have plans to finalise the revision of the ADP by next month.

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