The government expenditure on improving the living condition of people slipped to an eight-year low in the first quarter of current fiscal year despite new strategy taken by the government for bringing pace to ADP implementation.
From July through September in FY2015-16, only 7% of allocation for Annual Development Programme (ADP) was used, according to the data of Implementation Monitoring and Evaluation Division (IMED).
The figure is the lowest since FY2007-08.
Some Tk100,997 crore has been set aside for ADP in the budget for FY16. Of the amount, Tk6,806 crore was spent in the first quarter.
Usually, the rate of ADP implementation hovered around 10% in the first quarter of each fiscal year, and then it goes at a fastest pace in the last quarter – from March through June.
Among the 53 ministries and divisions, 38 implemented from 0 to 10%, 13 from 11 to 20% and two above 20% of their entire development allocations.
Of the amount used in the first three months of the current fiscal, Tk4,901 crore came from the government fund, Tk1,601 crore from foreign aid and Tk304 crore from public entities’ own fund.
The Public Administration Ministry with two projects failed to spend any fund, the lowest performer in development spending, while the cabinet division with two projects has spent 37% of its allocation in the first three months, the highest among the 53 ministries and divisions, according to statistics from IMED.
The power division, which got the highest allocation in the ADP, spent only 3% of its allotment.
The local government, which got the second highest allocation, used 11% in the first three months of its allocation.
The bridges division having third most allocation in ADP due to Padma Bridge Project, implemented only 4% of its share.
World Bank Lead Economist Zahid Hussain said despite efforts, efficiency in spending is disappointing so far. Though new strategy has been taken, we did not see any pragmatic step yet to translate those mechanisms into reality, he said.
Under the new strategy enforced for the current fiscal year, the government will appoint project directors to the development projects through interview in an effort to improve annual expenditure.