ADP spending in FY24 almost as low as pandemic period

The government could implement 81 percent of the annual development programme (ADP) in fiscal year (FY) 2023-24, which is nearly the same implementation rate seen during the Covid-19 pandemic.
The implementation rate is 4.25 percentage points lower than the previous fiscal year.
Different ministries and divisions utilised Tk 2.05 lakh crore of the total revised ADP worth Tk 2.54 lakh crore in FY24, as per data of the Implementation Monitoring and Evaluation Division released yesterday.
They spent Tk 1.24 lakh crore, or 77 percent, of the Tk 1.61 lakh crore the government set aside from its own fund to implement the ADP, which is a 19-year-low in terms of percentage.
At the same time, spending from foreign loans stood at 86 percent, indicating a fall of 4 percentage points compared to the previous fiscal year.
In FY23, the total ADP implementation was 85 percent, with Tk 2.01 lakh crore spent out of the Tk 2.36 lakh crore budget.
Regarding the low implementation of ADP, Fahmida Khatun, executive director of the Centre for Policy Dialogue, said the government revised the original ADP of each fiscal in the third quarter of the year as the implementing entities cannot execute their allocations as targeted.
She also said the implementation work of the projects start late as the procurement process, tendering, land acquisition, and appointment of a project director is usually delayed for various reasons.
Basically, there is a lack of skilled manpower to implement the projects. Also, there is a lack of accountability and proper evaluation in project implementation.
These are the root causes for low ADP implementation, Fahmida said, adding that it automatically creates employment opportunities when the ADP is implemented in a timely manner.
Among the top 15 allocation receiving ministries and divisions, the power division achieved the highest implementation rate, spending 101 percent of its allocation.
The Ministry of Housing and Public Works followed with 96 percent.
The Ministry of Water Resources was the third top implementing agency, spending 94 percent of its allocation, while the Ministry of Agriculture came fourth with 94 percent.
Meanwhile, the Local Government Division achieved implementation of 88 percent and the Road Transport and Highways Division reached 71 percent.
The Ministry of Railways achieved 85 percent, Ministry of Science and Technology 93 percent, Health Services Division 77 percent, Ministry of Primary and Mass Education 89 percent, Bridges Division 80 percent, Ministry of Shipping 74 percent, Ministry of Civil Aviation and Tourism 75 percent, Ministry of Secondary and Higher Education 90, and Prime Minister’s Office 63 percent.