ADP execution rate in Jul-Jan 21.52pc, lowest in 12 years

Implementation of development projects during the first seven months of this fiscal year (FY 2024-25) dropped to only 21.52 per cent of the FY's total allocation, the lowest in 12 years.

Officials said on Thursday that the interim government has taken a strict stance on unnecessary public expenditures, contributing to poor performance in implementation of the projects under the Annual Development Programme (ADP).

Besides, the uprising during the first couple of months (July-August) of the current fiscal year also affected the development works, holding back the government agencies to implement the projects in time, they added.

The execution rate was even poorer than the COVID-19 affected performance in FY2021 - the worst adverse impact on record previously.

During July-January period of FY25, the government agencies spent Tk 598.77 billion, 21.52 per cent of the total Tk 2.78 trillion ADP, available data of the Implementation Monitoring and Evaluation Division (IMED) showed on Thursday.

The rate in the same period of last FY was 5.59 percentage points higher at 27.11 per cent.

The ADP implementation rates of the government agencies during July-January period of all the previous 11 years were higher than the rate in FY25.

In the previous FY2024, the government agencies spent Tk 744.64 billion, 27.11 per cent of the Tk2.74 trillion ADP.

The ADP implementations rate declined as some big ministries and budget holders including health ministry, shipping ministry, bridges division, and education and higher education division performed poorly during the July-January period of this FY, according to the FE analysis on the IMED data.

The Planning Commission and IMED officials blamed the lower capacity of the government ministries and agencies for the poor execution of projects and said the ministries and agencies have been failing to improve their capacity over the years even after repeated reminders. "This is unfortunate," said one of them.

The government allocated Tk 2.78 trillion ADP for implementing some 1,400 development projects in the current FY.

When asked, an IMED senior official said they always monitor and evaluate implementation of the ongoing projects and ask the project directors to expedite execution.

Meanwhile, the PC has started exercising the ADP revision work amid the lower executions rate.

During Jul-Jan period this FY, the health services division was the worst performer as it has utilised only 5.15 per cent of its ADP allocations while the shipping ministry 11.84 per cent, the bridges division 18.05 per cent, and secondary and higher education division 16.02 per cent.

They project execution rates of the above ministries are much lower than the average implementation rate (21.52 per cent) of the ADP, the IMED data showed.

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