Decline in Implementation of Key Development Projects: ADP Cuts, Record Lump Sum Allocations Increase

Staff Reporter

Following the conspiracy in July-August to oust the Sheikh Hasina government, a stagnation has been observed in the implementation of key development projects across the country. Economists attribute this stagnation to the interim government’s harsh stance towards businesses and stakeholders in these sectors. This has led to a significant decline in the execution of development projects.

Additionally, the pace of work has slowed further in February compared to previous months. During the first eight months (July-February) of the current fiscal year, the implementation of the Annual Development Programme (ADP) has hit a record low.

On Monday, the Implementation, Monitoring, and Evaluation Division (IMED) of the Planning Commission published the ADP implementation data for the first eight months on its website, revealing this concerning trend.

According to the government data, only 24.27% of the ADP has been implemented so far. This is the lowest ADP implementation rate ever recorded by the IMED on its website.

Moreover, during these eight months, only Tk 67,553 crore has been released, the lowest since the 2018-19 fiscal year. In contrast, during the Awami League government’s tenure in the last fiscal year, Tk 85,602 crore was released, and ADP implementation was satisfactory.

It has been learned that this year, the ADP has seen the highest-ever cuts, breaking all previous records. Similarly, the Yunus government has allocated a record lump sum in the revised ADP. There are concerns that influential advisors and leaders of the Baicha movement may misuse these lump sum allocations under the guise of various projects, leading to wastage and misappropriation of public funds.

In February, only Tk 7,676 crore was released, compared to Tk 9,874 crore in January and Tk 15,787 crore in December. In February of the previous fiscal year, Tk 11,138 crore was released. ADP implementation continues to decline.

Recently, at a National Economic Council (NEC) meeting of the Planning Commission, Tk 49,000 crore was cut from the current fiscal year’s ADP due to a lack of demand from ministries and departments. To inflate the ADP size, a lump sum allocation of Tk 26,632 crore has been retained.

Experts predict that this year’s ADP implementation will fall short by nearly Tk 1 lakh crore compared to the original ADP, a situation unprecedented in history.

IMED sources indicate that compared to the 2023-24 fiscal year’s ADP, the revised ADP (RADP) was reduced by Tk 18,000 crore. In the 2022-23 fiscal year, the allocation was cut by Tk 18,500 crore, and in 2021-22, it was reduced by Tk 15,347 crore. This year, the ADP cuts have broken all previous records.

Meanwhile, despite the ADP cuts, the Yunus government has retained a record lump sum allocation in the revised ADP, a move no previous government has made. Economists believe this lump sum allocation is intended for misappropriation.

It has been learned that in the previous year, a lump sum of Tk 18,000 crore was retained, while in 2022-23, it was only Tk 3,700 crore.

Former IMED Secretary Abul Kashem Md. Mohiuddin stated, *”Fund releases for development projects have been reduced. Assessments are underway to determine which projects are more essential and which are less so. Decisions will be made after reviewing the projects.”*

However, he acknowledged that such record ADP cuts and lump sum allocations have never occurred in the past.