Business

ADP off to a slow start

The ministries and divisions put to use 3.86 percent of their total outlay in the first two months of the fiscal year, up from 3 percent they managed a year earlier.

The slight increase would come as a setback to the government, which has taken a host of initiatives over the last two to three years to bump up development spending.

Between July and August, Tk 4,756 crore was spent from the annual development programme allocation, in contrast to Tk 3,348 crore a year earlier.

ADP spending in the first two months has been declining since fiscal 2013-14. In fiscal 2012-13 the spending was Tk 4,539 crore, which came down to Tk 4,250 crore in fiscal 2013-14 and Tk 3,994 crore the year after.

From that perspective, the ADP implementation snapped out of a declining trend this fiscal year.

This year, the ADP outlay is Tk 123,346 crore, which includes the development allocation for state-owned enterprises.

Of the amount, the government will provide Tk 110,700 crore. About 4 percent of the government's own fund was spent in the first two months. The implementation rate from the government's own fund stood at 3 percent a year earlier. On the other hand, the project aid implementation rate stood at 3.25 percent, which was 4 percent during the same period last fiscal year.

Some 10 large ministries and divisions got 73 percent of the allocation this year.

But only three of the ministries and divisions -- primary and mass education ministry, power division and local government division -- spent higher than average.

The primary and mass education ministry expended 11.31 percent of its total allocation for the year, power division 8.78 percent and the local government division 5.42 percent.

The bridges division spent 1.48 percent, railways ministry 1.44 percent and road transport and highways division 0.98 percent.

The health ministry spent 0.01 percent, education ministry 1.08 percent, housing and public works ministry 1.39 percent and water resources ministry 0.21 percent.

Among the 54 ministries and divisions, 16 spent below 1 percent of their allocations.

Five ministries could not spend a single taka in the first two months of fiscal 2016-17. 

“The intensity of rain and flood was more than in other years, so the ADP spending in July was below 1 percent,” said a planning ministry official.

“In this context, we do not think the implementation rate in the first two months is frustrating,” he added.

Comments

ADP off to a slow start

The ministries and divisions put to use 3.86 percent of their total outlay in the first two months of the fiscal year, up from 3 percent they managed a year earlier.

The slight increase would come as a setback to the government, which has taken a host of initiatives over the last two to three years to bump up development spending.

Between July and August, Tk 4,756 crore was spent from the annual development programme allocation, in contrast to Tk 3,348 crore a year earlier.

ADP spending in the first two months has been declining since fiscal 2013-14. In fiscal 2012-13 the spending was Tk 4,539 crore, which came down to Tk 4,250 crore in fiscal 2013-14 and Tk 3,994 crore the year after.

From that perspective, the ADP implementation snapped out of a declining trend this fiscal year.

This year, the ADP outlay is Tk 123,346 crore, which includes the development allocation for state-owned enterprises.

Of the amount, the government will provide Tk 110,700 crore. About 4 percent of the government's own fund was spent in the first two months. The implementation rate from the government's own fund stood at 3 percent a year earlier. On the other hand, the project aid implementation rate stood at 3.25 percent, which was 4 percent during the same period last fiscal year.

Some 10 large ministries and divisions got 73 percent of the allocation this year.

But only three of the ministries and divisions -- primary and mass education ministry, power division and local government division -- spent higher than average.

The primary and mass education ministry expended 11.31 percent of its total allocation for the year, power division 8.78 percent and the local government division 5.42 percent.

The bridges division spent 1.48 percent, railways ministry 1.44 percent and road transport and highways division 0.98 percent.

The health ministry spent 0.01 percent, education ministry 1.08 percent, housing and public works ministry 1.39 percent and water resources ministry 0.21 percent.

Among the 54 ministries and divisions, 16 spent below 1 percent of their allocations.

Five ministries could not spend a single taka in the first two months of fiscal 2016-17. 

“The intensity of rain and flood was more than in other years, so the ADP spending in July was below 1 percent,” said a planning ministry official.

“In this context, we do not think the implementation rate in the first two months is frustrating,” he added.

Comments

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