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Bangladesh - Management - April 24, 2023

ADP size to be decreased in next budget

Mahfuja Mukul: Due to various reasons, the size of the Annual Development Program (ADP) for the next financial year 2023-24 is not increasing. Sources related to the budget said that it can be increased by only Tk 17,000 crore from the current financial year to Tk 263,000 crore.
According to sources, the size of ADP in the current financial year 2022-2023 was Tk 246,660 crore. The government plans to spend Tk 179,000 crore from the revenue sector in the ADP of the next financial year. The remaining Tk 84,000 crore will be collected as loans from various development partners.
According to sources, it is not possible to increase the allocation in the Annual Development Program (ADP) due to increased expenditure on interest and subsidies. Compared to the current year’s budget, the allocation for this sector has been increased by only 6.80 percent and Tk 263,000 crore is being kept in the next budget. Whereas in the previous financial year 2021-2022, the size of ADP was Tk 225,000 crores. That is, the size of ADP increased by Tk 21,000 crores in the financial year 2022-2023. This time it is increasing by Tk 17,000 crores.
A foreign debt target of Tk 94,000 crore has been set for the implementation of the ADP for the next financial year. In the current fiscal year, which is Tk 93,000 crores. However, the size of the revised ADP for the fiscal year 2022-2023 has been reduced to Tk 74,500 crore.
Meanwhile, the ministries are given huge allocations for the implementation of development projects every financial year, but they can’t spend it. In normal times, while the ADP implementation is between 37 and 40 per cent in the eight months from July to February, in the current financial year the ADP implementation has been only 32 per cent.
Analyzing the data of IMED, it can be seen that the implementation of ADP in the eight months from July to February is Tk 82,169 crores. This year the allocation for ADP is Tk 256,000 crores. That is, compared to the allocation, the implementation is only 32.10 percent. As of the last five financial years, earlier in 2021-2022 ADP implementation was 35.80 percent. Tk 84,765 crore were spent.
ADP implementation was the lowest in FY 2020-2021 at 33.83 percent. Tk 72,603 crore were spent. The implementation rate was 37.26 percent during the same period of the fiscal year 2019-2020. And the highest implementation was in the fiscal year 2018-2019, in that fiscal year the ADP implementation was 39.13 percent in eight months.
In addition, as a single month only in February, the ministries and departments have spent 10 thousand 879 crores on project implementation, the implementation rate is 3.94 percent. 5.59 percent was implemented in February of the previous year. Tk 13,232 crores were spent.
The Ministry of Railways has asked for Tk 14,966 crore for the annual development program in the next financial year. Out of this, Tk 4,423 crores from government funds. And Tk 10,442 crores from development partners. This ministry has asked for money against 35 ongoing projects.
When asked about increasing the allocation even if the amount allotted to ADP cannot be spent every year, an official of the Ministry of Planning said that the allocation must be increased. That’s how everyone moves. Other developing countries do the same. We can also analyze judgments on speeding up the implementation of development projects. It should be increased while making budget projections.
In the next financial year, the bridge department has demanded Tk 8,864 crore in the development budget. Of this, Tk 6,990 crores from government funds and Tk 2,563 crores from development partners. And Tk 281 crores have been asked for new unauthorized projects.
In the next financial year, the Ministry of Shipping has asked for an allocation of Tk 5,823 crore for ADP. Out of this, Tk 2,674 crore will be received from government funds and Tk 1,675 crore from development partners as project aid.
The road and highways department has asked for an allocation of Tk 33,240 crore in the next financial year 2023-24. Out of this, Tk 22,493 crores from government funds and Tk 9,747 crores from development partners as project aid. And the Roads and Highways Department has sought an allocation of Tk 1,000 crore from the government fund for unauthorized potential projects.

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