June spending spree takes ADP implementation to 10-yr high
Experts question quality of hurried works ahead of electionShafiqul Islam Jibon
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.
comments powered by Disqus
The defaulted loans in banks increased by around Tk 1,289 crore in the second quarter of this year to stand at Tk 52,309 crore at the end of June. The defaulted loans during April-June increased slightly compared to Tk 8,293 crore rise in the previous quarter because of... Full story
Japanese biotechnologists on Sunday said they had developed a rice plant with deeper roots that can sustain high yields in droughts that wipe out conventional rice crops. It is the third breakthrough in new cereal strains in less than two years, boosting the quest to feed the world’s... Full story
The inflow of remittance increased by 2.44 per cent to $12.30 billion in July, the first month of the current fiscal year, on year-on-year basis as the expatriate Bangladeshis remitted more US dollars in the period ahead of Eid-ul-Fitr, said officials of the Bangladesh Bank. Full story
The Bangladesh Telecommunication Regulatory Commission on Monday issued no objection certificate for nine new firms to provide international recharge service which allows loading mobile balance from abroad. Earlier there were four firms providing the service — Ezetop... Full story
Bangladesh Securities and Exchange Commission on Monday issued a show cause notice to Familytex (BD) as the company violated listing condition by taking a decision on dividend declaration before listing. ‘The commission on the day issued a show cause notice to Familytex and it also asked the... Full story
Bangladesh labour market in Iraq seems to be widened soon as the war-torn oil-rich Middle East country has expressed keen interest to recruit substantial number of workers from Bangladesh, officials said. A high-level Iraqi delegation led by its labour minister is scheduled to visit Dhaka and sign a memorandum of... Full story
Dhaka stocks gained on Monday, the last trading session before the Eid vacation, after a four-day fall as some institutional investors bought shares to avail lower prices of securities. Dhaka and Chittagong stock exchanges will remain closed in August 6-11 on the occasion of Eid-ul-Fitr, one of the biggest religious festivals for Muslims. Full story
Multinational companies in China say they are being forced to pick sides in a turf war between two major financial regulators fighting over which agency will drive currency and capital account liberalisation. The conflict between the People’s Bank of China and the State Administration of Foreign Exchange risks... Full story
India’s vital services sector, which contributes 60 per cent to the economy, shrank for the first time in nearly two years in July, figures Monday showed, fuelling pessimism about an early recovery. The figures suggest ‘a near-term recovery in growth is not in the cards as confidence remains subdued and global... Full story
Global banking giant HSBC announced on Monday a 22-per cent rise in half-year net profits on lower costs and falling bad-debt charges, while noting that slower Chinese growth was impacting its main market Asia. Profit after tax jumped to $10.28 billion (7.73 billion euros) in the six months to the end of June compared with the... Full story
Major General Mohd Habibur Rahman Khan on Thursday joined the Bangladesh Export Processing Zones Authority as its executive chairman, said a press release. Before joining BEPZA, Habib was the commandant of MIST. He was also the Engineer in Chief of Bangladesh Army. Full story
Global banking giant HSBC is closing the accounts of foreign diplomats in Britain and giving them 60 days to move their money, a report said Sunday. More than 40 embassies and consulates are said to have been affected, including the Vatican, with the decision being... Full story
The dollar was under pressure in Asia on Monday after lacklustre US jobs data and exporter selling weighed on the unit. The greenback fetched 98.76 yen in Tokyo afternoon trade, down from 98.89 yen in New York Friday afternoon and sharply lower from around 99.50 yen in Tokyo on Friday. Full story
Padma Islami Life Insurance Trading of the shares of the company will be allowed only in the spot market and block/odd lot transactions will also be settled as per spot settlement cycle with cum benefit from 12.08.2013 to 25.08.2013. Trading of the shares of the... Full story