ADP spending 9 percent below target

The government has not been able to spend the entire Annual Development Programme (ADP) allocation for 2014-15, despite repeated assurances by Planning Minister AHM Mustafa Kamal.

The Implementation, Monitoring and Evaluation Department (IMED) of the Planning Ministry reported an ADP spending of Tk 710.79 billion in 2014-15 FY.
 
That is 91 percent of the target.
 
Gross ADP spending has increased over the previous financial year, but the percentage of target spending achieved has dropped.
 
In 2013-14 FY, the government achieved 93 percent of the ADP target. 

In the 2014-15 FY, the government has spent 67 percent of the ADP allocations until May this year. Then in June, it managed to spend 24 percent of it.

Planning Minister AHM Mustafa Kamal, in a number of meetings throughout the fiscal, instructed project directors and IMED officials on increasing ADP implementation.

In a letter to the project chiefs last year, he instructed them to set separate quarterly goals and implement them within the deadlines.

Kamal had also warned them against extension of projects that had already been extended and said multiple projects could not have the same project director.

He asked them to inform him in case of funding problems.   

Following the consultations, the minister expressed hopes of 100 percent implementation of the ADP.

The IMED identified nine barriers to ADP implementation,

These are failure to properly follow guidelines and to understand the difference between ministry’s demand and midterm budget structure, rapid increase in number of projects, absence of the Planning Commission’s budget controlling power, qualitative weakness of DPPs and TPPs, and high transfer rates of project directors.