Friday, October 4, 2024

June spending spree takes ADP implementation to 10-yr high

Experts question quality of hurried works ahead of election
The implementation rate of the revised annual development programme in the last fiscal year 2012-13 increased to an 10-year high of 96 per cent as the government, keeping an eye on the general election, went into spending spree in June.
The government agencies and departments spent Tk 13,768 crore, or almost one fourth of the revised ADP of Tk 52,366 crore in a hurried implementation drive of different projects in June, the last month of the FY 2012-13.
Till May, the implementation rate of revised ADP was only 69 per cent or Tk 36,258 crore.
Economists, however, said there was nothing to be complacent about the record rate of ADP implementation in a single month in a hurried manner ahead of the elections.
‘When they go for hurried spending, it is obvious the quality of works will come into question. Besides, there is room for misuse of public money,’ said Zaid Bakth, research director of Bangladesh Institute of Development Studies.
He said that the government had a target to spend higher under the ADP as it was an election year.
Former caretaker government’s economic adviser Mirza Azizul Islam said that in paper it looked satisfactory that the government had spent 96 per cent of allocation. ‘But there is question about the real progress in development works as the government has no system to monitor the works physically,’ he said.
‘The government made around 25 per cent progress in June alone. I think the government hurried to spend money ahead of the national election,” Mirza Aziz said.
Officials of IMED said that people linked to the ruling party were engaged in implementing most of the development works. ‘So, in many cases, they had to show higher spending against works to gobble up handsome amount ahead of election,’ said an official, adding that it was a general picture during the last year of any government.
IMED director Abul Kalam Azad, however, said that the ADP expenditure increased as different ministries intensified their monitoring system of the development works in the country.
Overall capacity building in implementation of ADP has also been increased while the development partners have tightened their vigilance and increased disbursement of assistance which helped the government to speed up the development works, Azad said.
IMED data shows the total expenditure in the last fiscal year was Tk 50,026 crore including Tk 16,809 crore as project assistance from development partners out of total RADP of Tk 52,366 crore.
The original ADP for the last fiscal year was Tk 55,000 crore but the government in May slashed the size to Tk 52,366 crore.
IMED also took into consideration autonomous bodies’ allocation of Tk 5,022 crore in the revised ADP but it calculated the implementation of their projects separately.
The autonomous bodies spent Tk 2,258 crore or 45 per cent of the total allocation.
The rate of ADP implementation was 93 per cent in the FY 2011-2012 and it hovered between 83 and 92 per cent in the previous eight fiscal years.
Of the total expenditure last fiscal year, the project assistance was Tk 16,809 crore or 91 per cent while the government has spent in local currency Tk 33,217 crore or 98 per cent of total allocation for RADP.
IMED said the power division was the highest performer among the top allocation receivers as they have been able to spent 104 per cent or Tk 8,864.15 crore against their allocated fund of Tk 8,561.23 crore while the housing and public works ministry was evaluated as least performer with 47 per cent progress in their project implementation.
Overall completion progress of top ten ministries and divisions in the last fiscal was 76 per cent or Tk 40,759.58 crore against allocation of Tk 43,875.42 crore in 2012-13.
Local Government Division made progress with implementation of 94 per cent, Primary and Mass Education Ministry 96 per cent, Health and Family Welfare Ministry 92 per cent, Road Division 100 per cent, Energy and Mineral Resources Division 81 per cent, Railways Division 95 per cent, Education Ministry 98 per cent and Water Resources Ministry 98 per cent against their allocations.
The IMED data, released on Monday, showed many of the ministries spent more than their allocations.
The expenditure of Legislative and Parliamentary Affairs Division  was 304 per cent of allocation, women and children’s affairs ministry 129 per cent, science and technology ministry 124 per cent, disaster management and relief 117 per cent, expatriates’ welfare and overseas employment ministry 110 per cent, Rural Development & Co-operative Division 107 per cent, Law and Justice Division 104 per cent and information ministry 104 per cent.

-With New Age input

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