Allocations for ADP in the budget have been increasing steadily over the years but challenges remain in implementation
The government is taking a series of measures to enhance the implementation rate of the Annual Development Program (ADP) to overcome the lack of capability to use project funds and to speed up the pace of development.
Allocations for ADP in the budget have been increasing steadily over the years but challenges remain in implementing those.
“That is why the government has taken an effective move to take the ADP implementation to a satisfactory level,” according to an official document.
Steps being mulled by the government include the introduction of IBAIS++ digital platform for all ministries and bringing massive reform in the disbursement of funds.
From the last 2019-20 fiscal year, project directors have been given the authority to disburse all four instalments of government funds.
The document said that these steps would help ensure the highest usage of project assistance besides playing an auxiliary role in resisting the misuse of funds in implementing projects.
It noted that one of the main sources of creating capital in the public sector is ADP.
ADP implementation over the years
The ADP implementation in FY2013-14 was 91% against the revised budget of Tk600,000 crore, up from 86.6% in FY2014-15 against the revised budget of Tk750,000 crore.
In the 2015-16 fiscal year, the revised budget for ADP was Tk910,000 crore but the implementation was 88.9%, whereas in FY2016-17 the revised ADP budget was Tk1,107,000 crore, but the implementation was 76%.
In the 2017-18 and 2018-19 fiscal years, the revised budgets for ADP were Tk1,483,800 crore and Tk1,670,000 crore, respectively, while the implementation rates were 80.6% and 88.2%.
Meanwhile, the preliminary allocations for ADP for 2013-14, 2014-15, 2015-16, 2016-17, 2017-18 and 2018-19 fiscal years were respectively Tk658,700 crore, Tk803,100 crore, Tk970,000 crore, Tk1,107,000 crore, Tk1,533,800 crore and Tk1,730,000 crore.
This means considering the initial allocation for the ADP, the implementation will be much lower.
In the 2019-20 fiscal year, the ADP implementation rate was 80.18% amid the Covid-19 pandemic that stalled all works in the country for a long time as the government enforced months-long general holidays to curb the spread of the virus.
For the 2020-21 fiscal year, the government approved a Tk2,051,450 crore ADP, but in March it was revised to Tk1,976,430 crore.
Boosting ADP implementation capacity
The document said that due to the coronavirus, the implementation rate might be lower than usual.
It noted that the government is giving special attention to the implementation of the ADP in the related projects.
According to senior officials at the Planning Ministry and Finance Ministry, the government is compelled to reduce the size of ADP each year due to the lack of capability of implementation.
“Even the revised ADP remains unimplemented for the same reason,” a senior official at the Planning Ministry said.
He also mentioned that if the ADP implementation can be taken to the desired level as per its initial allocation, the country could advance towards the developed level at a greater pace.
The size of the ADP for the next 2021-22 fiscal year will likely be Tk2,130,000 crore giving importance to transport, education, health, and agriculture sectors for offsetting the adverse impacts of the coronavirus that has been affecting the economy since March last year.