Dhaka, Mar 10:
The government needs to invest Tk. 20,955 crore within next four months to attain 100 per cent implementation of the total Revised Annual Development Programe (RADP) of Tk. 35,130 crore.
The government has so far invested Tk. 14,175 crore, between July to February of the current fiscal year, which is 37 per cent of the total RADP,that is 2 per cent less than the previous fiscal. But, the achievement of the ADP implementation, during the current fiscal, would be higher than the previous fiscal, as the size of ADP is higher. The total ADP size was Tk. 30,500 crore, against 886 projects in 2009-10 financial year.
On February 27, the National Economic Council (NEC) had granted Tk. 35,130 crore for the Revised Annual Development Programme (RADP) for 2010-11, cutting down Tk. 3,370 crore from project aid. The agreed RADP is 8.75 per cent lower than the original ADP of Tk. 38,500 crore.
The finance ministry disbursed Tk. 13,791 crore, against Tk. 14,175 crore, during this period, which stood at 37 per cent of average achievement.
Of the total investment, Tk. 10,063 crore or 43 per cent has been used from local resources. The figure for financial year 2009-10 was Tk. 7,244 crore.
Investment of project aid, during this fiscal, has been lower, in comparison to the previous year, and the ratio of the local resources and project aid notably declined.
During July-February, the project aid spent was only 27 per cent and the amount was Tk. 4,112 crore, while the amount was Tk. 4,664 crore, or 36 per cent of the total amount of ADP in the previous fiscal year.
Of the top 10 ADP allocated ministries, six ministries could not achieve the average achievement of 37 per cent, during the above-mentioned period.
Among the top 10 ADP allocated ministries, the power division could implement 29 per cent (Tk. 1,414 crore), water resources ministry, 29 per cent (Tk. 394 crore), health and family welfare ministry, 28 per cent (Tk. 960 crore), road and highway department, 27 per cent (Tk. 908 crore), energy and mineral resources division, 19 per cent (Tk. 168 crore) and bridge division, 16 per cent (Tk. 209 crore).
The planning ministry has been exerting pressure on the ministries and divisions from the very beginning of the current fiscal to accelerate ADP implementation.
Meanwhile, officials of the Implementation Monitoring and Evaluation Division (IMED) of the Planning Commission expressed apprehension over the investment of a huge amount of Tk. 20,955 crore, within the next four months.
The civil society think tank,Center for Policy Dialogue (CPD), in its analysis on "State of the Bangladesh Economy in FY 2010-11" has said the relatively encouraging performance of a number of key real sectors has not been adequately matched by public investment behavior.
Implementation of the annual development programme (ADP) could not make a tangible departure – if not deteriorated – from the traditional trend of stagnation, the CPD observed.
"Indeed, the most critical sectors, particularly energy and power, seem to be the most laggard in this regard."
It also said that a visible improvement in public investment, in terms of ADP implementation as percentage of GDP, has also been a promising feature of the last fiscal year.
The government has so far invested Tk. 14,175 crore, between July to February of the current fiscal year, which is 37 per cent of the total RADP,that is 2 per cent less than the previous fiscal. But, the achievement of the ADP implementation, during the current fiscal, would be higher than the previous fiscal, as the size of ADP is higher. The total ADP size was Tk. 30,500 crore, against 886 projects in 2009-10 financial year.
On February 27, the National Economic Council (NEC) had granted Tk. 35,130 crore for the Revised Annual Development Programme (RADP) for 2010-11, cutting down Tk. 3,370 crore from project aid. The agreed RADP is 8.75 per cent lower than the original ADP of Tk. 38,500 crore.
The finance ministry disbursed Tk. 13,791 crore, against Tk. 14,175 crore, during this period, which stood at 37 per cent of average achievement.
Of the total investment, Tk. 10,063 crore or 43 per cent has been used from local resources. The figure for financial year 2009-10 was Tk. 7,244 crore.
Investment of project aid, during this fiscal, has been lower, in comparison to the previous year, and the ratio of the local resources and project aid notably declined.
During July-February, the project aid spent was only 27 per cent and the amount was Tk. 4,112 crore, while the amount was Tk. 4,664 crore, or 36 per cent of the total amount of ADP in the previous fiscal year.
Of the top 10 ADP allocated ministries, six ministries could not achieve the average achievement of 37 per cent, during the above-mentioned period.
Among the top 10 ADP allocated ministries, the power division could implement 29 per cent (Tk. 1,414 crore), water resources ministry, 29 per cent (Tk. 394 crore), health and family welfare ministry, 28 per cent (Tk. 960 crore), road and highway department, 27 per cent (Tk. 908 crore), energy and mineral resources division, 19 per cent (Tk. 168 crore) and bridge division, 16 per cent (Tk. 209 crore).
The planning ministry has been exerting pressure on the ministries and divisions from the very beginning of the current fiscal to accelerate ADP implementation.
Meanwhile, officials of the Implementation Monitoring and Evaluation Division (IMED) of the Planning Commission expressed apprehension over the investment of a huge amount of Tk. 20,955 crore, within the next four months.
The civil society think tank,Center for Policy Dialogue (CPD), in its analysis on "State of the Bangladesh Economy in FY 2010-11" has said the relatively encouraging performance of a number of key real sectors has not been adequately matched by public investment behavior.
Implementation of the annual development programme (ADP) could not make a tangible departure – if not deteriorated – from the traditional trend of stagnation, the CPD observed.
"Indeed, the most critical sectors, particularly energy and power, seem to be the most laggard in this regard."
It also said that a visible improvement in public investment, in terms of ADP implementation as percentage of GDP, has also been a promising feature of the last fiscal year.
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