Govt upgrading ADP implementation capacity for growth acceleration
The government is taking a series of measures to enhance the implementation rate of Annual Development Programme (ADP) in an effort to overcome the lack of capability to use project funds and speed up the development projects.
Allocations for ADP in the budget have been increasing steadily over the years but challenges remain in implementing the funds. "That's 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 introduction of IBAIS++ digital platform for all ministries and bringing massive reform in the disbursement of funds.
From the last 2019-20 fiscal, project directors have been given the authority to disburse all four installments 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 public sector is ADP.
ADP implementation over the years
The ADP implementation in 2013-14 fiscal was 91 per cent against the revised budget of Tk 600 billion up from 86.6 per cent in 2014-15 fiscal against the revised budget of Tk 750 billion.
In 2015-16 fiscal, the revised budget for ADP was Tk 9.1 billion but the implementation was 88.9 per cent whereas in 2016-17 fiscal the revised budget was Tk 1,107 billion but the implementation was 76 per cent.
In 2017-18 and 2018-19 fiscals, the revised budgets for ADP were Tk 1,483.8 billion and Tk 1,670 billion while the implementation rates were 80.6 per cent and 88.2 per cent respectively.
Meanwhile, the preliminary allocations for ADP for 2013-14, 2014-15, 2015-16, 2016-17, 2017-18 and 2018-19 fiscals were Tk 658.7 billion, Tk 803.1 billion, Tk 970 billion, Tk 1,107 billion, Tk 1,533..8 billion and Tk 1,730 billion.
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 per cent 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, the government had approved a Tk 2,051.45 billion ADP, but in March it was revised to Tk 1,976.43 billion.
Boosting ADP implementation capacity
The document said that due to the coronavirus, the implementation rate might be lower than the general time. It noted that the government is giving a special attention to the implementation of the ADP in the related projects.
According to senior officials at the planning ministry and the finance ministry, the government is compelled to reduce the size of ADP each year due to the lack of capability of implementation of the ADP.
"Even the revised ADP remains unimplemented for the same reason," a senior official at the Planning Ministry said.
Meanwhile, the size of the ADP for the next 2021-22 fiscal year will likely be Tk 2,130 billion 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.