DHAKA NEWS
Dhaka, Apr 1 The government has reduced outlay for the current fiscal's Annual Development Programme (ADP), like previous years.
The size of ADP was Tk 460 billion in the budget for the current financial year 2011-12, but the amount was cut by Tk 50 billion as programme implementation was sluggish and aid money remained stuck in the pipeline.
A National Economic Council (NEC) meeting, chaired by prime minister Sheikh Hasina, on Sunday approved the revised ADP of Tk 410 billion, said planning minister A K Khandaker.
In the revised ADP, foreign aid has been reduced and assessed at Tk 150 billion, and Tk 260 billion has been added from local resources, he said.
Every year, the ADP amount announced during the budget is downsized in the revised one.
Member of the General Economics Division (GED) of the Planning Commission Shamsul Alam told bdnews24.com on Saturday, "The ADP amount is going to be slashed as the money allotted for the programme could not be spent. Another major reason is that project aid is stuck in the pipeline."
The statistics show ADP implementation in the first eight months (July-February) of the current financial year was 38 percent. The implementation had been 37 percent in the same period last fiscal.
Figures suggest the rate of ADP implementation usually remains unsatisfactory in the first seven or eight months of any fiscal but the pace of implementation dramatically quickens towards the end of the year.
Former finance advisor to the caretaker government A B Mirza Azizul Islam expressed disappointment over the trend of downsizing ADP every year.
"It's our bad luck. We adopt a bigger ADP every year but we revise it as implementation falls behind the target," he said.
"Moreover, we finish work hastily at the end of every financial year. We are able to spend money this way but the standard of work falls," he added.
In the last fiscal, ADP implementation rate was 92 percent. The implementation had been 90 percent in 2009-10 and 86 percent in 2008-09, according to government statistics.
"It (the trend) has become a part of our culture. We'll have to move out of this. We'll have to speed up work from the beginning of the financial year," Azizul said.
However, despite cut in ADP allocation, the number of projects has been increased by 189. The main ADP had 1,039 projects while the number has gone up to 1,278 in the revised one.
Asked whether the project number has been raised due to political considerations, the planning minister said, "The number of projects has been increased for the sake of country's development, not politics."
On Mar 12, finance minister A M A Muhith presented to parliament a report on budget implementation progress during the first six months of the current fiscal (July to December). In the report, he announced downsizing the ADP allocation to Tk 405 billion.
But, Sunday's NEC meeting increased the allocation by Tk 5 billion.
Asked whether the prime minister issued any order to accelerate project implementation rate, Khandaker said the prime minister has directed that if a ministry and department fails to use the allotted money, then it should be allotted to those who can use it.
"There's no use blocking money if we cannot use them. The country will develop if the money is given to those who can utilise it," he quoted the prime minister as saying.
The Planning Commission member said the allocation in the power sector has been given the highest priority in the adjusted ADP. The amount of allocation in this sector is Tk 71.83 billion, which is 17.74 percent of the total allotted amount.
Other sectors with high allocation are – transportation (Tk 59.08 billion or 14.59 percent), rural development and rural institutions (Tk 50.13 billion or 12.38 percent), education and religion (Tk 48.08 billion or 11.87 percent), physical infrastructure planning, water supply and housing (Tk 41.76 billion or 10.31 percent), health, nutrition, population and family planning (Tk 33.6 billion or 8.3 percent) and agriculture (Tk 25.41 billion or 6.27 percent).
In 2008-09, the original ADP allocation was Tk 256 billion but later revised downwards to Tk 230 billion.
It had been Tk 305 billion in 2009-10 but was reduced to Tk 285 billion.
In fiscal 2010-11, the main ADP was Tk 385 billion but was downsized to Tk 358.80 billion.
The Planning Commission finalised the size of ADP in line with demands of several ministries and departments, he said.
Shamsul said the new ADP would be cleared by NEC before the next budget is placed.
The size of ADP was Tk 460 billion in the budget for the current financial year 2011-12, but the amount was cut by Tk 50 billion as programme implementation was sluggish and aid money remained stuck in the pipeline.
A National Economic Council (NEC) meeting, chaired by prime minister Sheikh Hasina, on Sunday approved the revised ADP of Tk 410 billion, said planning minister A K Khandaker.
In the revised ADP, foreign aid has been reduced and assessed at Tk 150 billion, and Tk 260 billion has been added from local resources, he said.
Every year, the ADP amount announced during the budget is downsized in the revised one.
Member of the General Economics Division (GED) of the Planning Commission Shamsul Alam told bdnews24.com on Saturday, "The ADP amount is going to be slashed as the money allotted for the programme could not be spent. Another major reason is that project aid is stuck in the pipeline."
The statistics show ADP implementation in the first eight months (July-February) of the current financial year was 38 percent. The implementation had been 37 percent in the same period last fiscal.
Figures suggest the rate of ADP implementation usually remains unsatisfactory in the first seven or eight months of any fiscal but the pace of implementation dramatically quickens towards the end of the year.
Former finance advisor to the caretaker government A B Mirza Azizul Islam expressed disappointment over the trend of downsizing ADP every year.
"It's our bad luck. We adopt a bigger ADP every year but we revise it as implementation falls behind the target," he said.
"Moreover, we finish work hastily at the end of every financial year. We are able to spend money this way but the standard of work falls," he added.
In the last fiscal, ADP implementation rate was 92 percent. The implementation had been 90 percent in 2009-10 and 86 percent in 2008-09, according to government statistics.
"It (the trend) has become a part of our culture. We'll have to move out of this. We'll have to speed up work from the beginning of the financial year," Azizul said.
However, despite cut in ADP allocation, the number of projects has been increased by 189. The main ADP had 1,039 projects while the number has gone up to 1,278 in the revised one.
Asked whether the project number has been raised due to political considerations, the planning minister said, "The number of projects has been increased for the sake of country's development, not politics."
On Mar 12, finance minister A M A Muhith presented to parliament a report on budget implementation progress during the first six months of the current fiscal (July to December). In the report, he announced downsizing the ADP allocation to Tk 405 billion.
But, Sunday's NEC meeting increased the allocation by Tk 5 billion.
Asked whether the prime minister issued any order to accelerate project implementation rate, Khandaker said the prime minister has directed that if a ministry and department fails to use the allotted money, then it should be allotted to those who can use it.
"There's no use blocking money if we cannot use them. The country will develop if the money is given to those who can utilise it," he quoted the prime minister as saying.
The Planning Commission member said the allocation in the power sector has been given the highest priority in the adjusted ADP. The amount of allocation in this sector is Tk 71.83 billion, which is 17.74 percent of the total allotted amount.
Other sectors with high allocation are – transportation (Tk 59.08 billion or 14.59 percent), rural development and rural institutions (Tk 50.13 billion or 12.38 percent), education and religion (Tk 48.08 billion or 11.87 percent), physical infrastructure planning, water supply and housing (Tk 41.76 billion or 10.31 percent), health, nutrition, population and family planning (Tk 33.6 billion or 8.3 percent) and agriculture (Tk 25.41 billion or 6.27 percent).
In 2008-09, the original ADP allocation was Tk 256 billion but later revised downwards to Tk 230 billion.
It had been Tk 305 billion in 2009-10 but was reduced to Tk 285 billion.
In fiscal 2010-11, the main ADP was Tk 385 billion but was downsized to Tk 358.80 billion.
The Planning Commission finalised the size of ADP in line with demands of several ministries and departments, he said.
Shamsul said the new ADP would be cleared by NEC before the next budget is placed.
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