ADP spending in July-March lowest in 15 years

Implementation of the Annual Development Programme (ADP) in the first nine months of the current fiscal year of 2024-25 has reached its lowest point in at least 15 years, with about Tk 82,894 crore being spent during the period.

 This means just 36.65 percent of the total revised outlay for FY25 has been used during the July-March period, according to data from the Implementation Monitoring and Evaluation Division (IMED), published yesterday.

 Even during the same nine months in FY21, when almost all economic activities were put on hold amid the Covid-19 pandemic, the ADP implementation rate was higher at 42 percent.

 The ADP execution rate declined this fiscal year as development activities were hampered by political unrest soon after it began on July 1, according to planning ministry officials.

About 36 percent of the total revised outlay for FY25 has been used during the July-March period

 They also pointed to how the interim government has taken austerity measures, such as slowing or postponing certain projects initiated by the previous administration, in the face of budgetary shortfalls.

 Furthermore, a number of contractors for various projects fled the country before completing their work following the recent political changeover, thereby adversely impacting ADP implementation.

 In response to this underwhelming performance in ADP implementation, relevant authorities downsized the total outlay for FY25 by about Tk 53,000 crore to Tk 226,125 crore to realign expectations with current realities.

 During this period, the utilisation of both state funds and foreign loans has declined.

 Of them, the spending of foreign funds fell to about Tk 32,411 crore, which makes up just 40 percent of this year's ADP allocation.

 In the July-March period of FY24, around Tk 44,066 crore, or 52.77 percent, of the overall ADP budget for that year came from foreign funds.

 It was also found that performances of the 15 ministries, state divisions, and departments scrutinised for their progress in implementing ADP funds varied greatly.

 The Energy and Mineral Resources Division secured the top position, utilising 79.71 percent of its allocation, followed by the Power Division with 56.27 percent.

 On the other hand, health-related sectors lagged behind significantly, with the Health Services Division reporting an implementation rate of merely 14.41 percent.

 This highlights severe challenges in executing projects that are essential for public health.