ADP spending below 1% in July
In the previous two fiscal years, the July spending rate was 1.14% and 1.52% respectively
In the first month of this fiscal year, the government's spending from its Annual Development Programme (ADP) remained below 1% of the allocation for 12 months.
In July, the government authorities spent only Tk2,455 crore, which is 0.96% of the ADP allocation of Tk256,003 crore for fiscal 2022-23.
In the previous two fiscal years, the July spending rate was 1.14% and 1.52% respectively, according to the latest report of the Implementation Monitoring and Evaluation Department (IMED).
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According to officials at the IMED and Planning Commission, usually, ADP implementation remains less at the beginning of the year. Because the month of July passes by in taking the year-long expenditure plan.
Apart from this, the ADP implementation at the beginning of the current financial year has been lower compared to other financial years due to the government's strategy of reducing expenditure to deal with the current economic situation, they added.
According to the people concerned, the ADP implementation rate at the end of the fiscal year will be lower than in other fiscal years thanks to the austerity measures.
To deal with the economic crisis, the government has divided the development projects into A, B and C categories considering their importance. Projects which will not cause many problems in delaying implantation are kept in the C category. The fund release for these projects has been halted.
The government allows the release of 75% of funds for B-category projects. As a result, 25% of funds for these projects will not be released.
The government will release 100% of the money for the projects under the A category considering their importance. All projects of foreign financing are kept in this category.
This resulted in an expenditure of 1.06% from foreign aid allocation in July. On the other hand, the spending from public funds stood at 0.89%.
Some 36 ministries and departments could not spend even a single taka of foreign loan allocation in the first month of the fiscal year.
On the other hand, 13 ministries and departments have not spent any money from the allocation of government funds.
Of the 16 ministries and departments with the highest allocations in ADP, only two – power and railways – managed to spend above 1%.
Ministries and departments that have not spent even a single taka in July include the water resources, land, religion and foreign ministries as well as the financial institutions and public security divisions.
