ADP implementation: Speed with quality


Marksman | Published: December 11, 2018 21:43:19


ADP implementation: Speed with quality

Planning Minister AHM Mustafa Kamal last Sunday exulted over "all-time high" ADP spending during July-November period of the ongoing fiscal  year-- in the history of ADP implementation. According to the Implementation, Monitoring, Evaluation Division (IMED) of the Planning Commission, Tk 364.38 billion (36,438 crore)  was spent  in five months from July to November, 2018-2019 compared with Tk. 329.97 billion (32,997 crore)   expended  during the  corresponding  period of the last fiscal year.

To gauge the  proportion  of 'utilisation', let's put  it  in a broader   perspective of  the total  outlay for  the Annual Development Programme (ADP), 2017-18:  Tk 1.80 trillion including the amount earmarked  for the  autonomous  institutions.

The  November marker  of the spending figure  at Tk 126.23 billion in contrast to the  monthly average of Tk 62.16 billion in the previous  quarter  of the on-going  fiscal is clearly indicative  of a  spurt in  fund  utilisation  triggered  by the election.  This trend  is  likely    to   gather  momentum   during  all of December.

The sector-wise rate of fund utilisation when detailed may not be as impressive as  the output of five-month cycle. Examples: Of the total amount spent  in the  first five months, Tk 212.14 billion was drawn from  the government's own funds. This  worked  out to 18.77 per cent  of the intended  utilisation (for the whole year)  compared   with  18.55 per cent  a year earlier. As for performance of the state-owned enterprises, this  improved slightly to 21.93 per cent  from 20.31 per cent  in the previous year.

 In terms of foreign aid utilisation, we actually went downhill having spent 21.61 per cent  vis-à-vis  22.59  per cent  at this point a year earlier. A reminder of the   'pipeline bulge',  a nickname  we  have  carried  the baggage  of  so ironically indeed  despite our minimal  dependence on  external resources!    Thanks to our bureaucratic rigmarole and no less to cluttered formalities that project aid is usually enmeshed in!

The   spending acceleration  is  in  part due to the   election push   but it is being    ascribed   to a  special measure: The finance  division, in June last, empowered the  project directors  to release the funds of the first two quarters by themselves  instead of waiting  for approval from  ministries  or  divisions. Previously such a  recourse  would have  meant  two to three months' delay   denying    what could be a perfect  lead time  for a steady start  on  projects.

We  never  tire of  harping  on  the need  for   delegation of authority to the project  directors  in conjunction  with  their  retention on the  posts at least  until  the commissioning  of   project , if not  longer, to put in place   a maintenance  drill. Now that  the  efficacy  of the approach  has been proven to a  certain degree  on application , we  need to build up on the  experience  and replicate  it  extensively.

There are a few substantive points to be made in light of the rushing nature  of project  implementation  halfway through a fiscal year. Especially in the last quarter  a frenzy  of  meeting  financial targets  gets the better of  fulfilling the physical  targets. The strings of unfinished, largely uneconomic  projects often   gape.        
         

safarihi43@gmail.com

 

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