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Only a third of ADP spent in six months

Muhith says spending will be less than last year

Star Business Report
The government was able to spend only a third of the money allocated for development projects although half of the current fiscal year has gone by.
Finance Minister AMA Muhith said the spending this year will be even less than last year.
Ministries and divisions will not get local fund as substitute, if they fail to spend foreign assistance, he added.
Those who failed to spend foreign funds last year were given support from local sources. "But this time they are not getting the scope.”
The minister said “some old habits" were responsible for the smaller amount of spending this year — undertaking projects without feasibility study, complexities in appointing project directors and a dearth of manpower.
During the July-December period, some progress was made in utilising the government's own funds but the use of foreign aids decreased comparatively.
According to Implementation Monitoring and Evaluation Division (IMED) statistics, annual development programme (ADP) implementation was Tk 12,703 crore or 28 percent of the total outlay during the six-month period.
During the same period last year, the implementation was 27 percent of the allocation.
The total ADP size in the current fiscal year was Tk 46,000 crore, up by 35 percent from the revised allocation of the previous year.
During the first six months this year, local fund spending was Tk 9,588 crore or 35 percent of the allocation and foreign fund utilisation wasTk 3,115 crore or 17 percent of the allocation.
During the same period last year, local fund utilisation was 32 percent, while 18 percent of the foreign funds were used.
However, an IMED official said the implementation rate usually remains low in the first six months, but gathers momentum in the later half.
The official blamed the slow implementation rate on the poor utilisation of foreign aid.
A large part of the foreign aids was allocated for the Padma Bridge project but due to complications, no funds got released, the official said.
The health ministry is also lagging in utilisation of foreign assistance.
Among 10 large ministries and divisions that got 68 percent of the allocation of the total ADP, the highest spender was the power division that utilised 44 percent of its allocation, followed by primary and mass education ministry's 43 percent, local government division's 39 percent, roads division's 36 percent and railways' 28 percent.
Besides, the bridge division spent only 6 percent and health and family welfare ministry 18 percent. The health ministry used only 4 percent of its allocation of foreign aid.
Many ministries and divisions spent only 1 to 4 percent of their total allocation. The civil aviation