Project execution 61.73% in 11 months of FY23
Implementation on many projects are on pause due to the increase in construction materials costs
The government has managed to implement only 63.73% of the revised Annual Development Programme (ADP) in the July-May period of the current fiscal year 2022-23 due to a lack of spending capacity.
This rate was 64.84% in the same period previous fiscal year.
All ministries and divisions could spend only 57.41% of the ADP allocation in the 11 months of the outgoing fiscal year, according to the latest progress report by the Implementation Monitoring and Evaluation Division (IMED).
The rate was 61.73% during the same period last fiscal.
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The rise in construction material costs has resulted in the suspension of numerous projects in the current economic situation, said officials of the IMED of the planning ministry.
Besides, government austerity measures, aimed at managing the present economic situation, have limited funding allocation to certain projects, thereby impacting the overall ADP implementation rate, the officials added.
According to IMED officials, despite the government's efforts to formulate diverse strategies for ADP implementation, the ministries and divisions have not fully developed their capacity for efficient execution.
IMED data further shows that the spending rate of foreign aid allocation in the July-May period was 70.86%, which was 69.59% in the corresponding period last year.
According to IMED, 22 ministries and departments have managed to spend less than half of the amount allocated to them.
Besides, 14 ministries and divisions could not spend half of the foreign aid allocation.
For instance, the Ministry of Shipping has spent only 22.76% of its foreign aid allocation in the 11 months of FY23.
However, among the 15 ministries and divisions that received the maximum allocation in the revised ADP, only a few showed good ADP progress.
Among them are the Energy and Mineral Resources Division at 92.58%, the Ministry of Science and Technology at 76.41%, the Power Division at 73.49%, and the Ministry of Railways at 71.82%.
