THE government on Thursday cut the size of the Annual Development Programme of the current fiscal year by Tk 9,800 crore. The entire cut is in the aid from multilateral donors for the implementation of the ADP. The contribution of the local resources has been retained at Tk 1,30,927 crore as the ADP size became Tk 1,91,921 crore from the projected Tk 2,02,721 crore.
The main reason for this is the cut in the aid from foreign sources. Conditions attached by donors like the World Bank were chiefly delaying the fund disbursement for development projects. This was also delaying the implementation of the aided-projects, necessitating the downward revision of the overall ADP size.
The rules and regulations imposed by donors are there, of course, to ensure that projects are implemented successfully and efficiently, without there being any corruption in the procurement or implementation phases of the projects. Therefore it stands to reason that if the government get lesser number of funds from the foreign donors it is due to the inability of the government to reassure the donors that their funds are being implemented properly.
And that, therefore, is a basic failing of the administration–not the donors. The donors will happily provide funds if they see that the rate at which they are being implemented is successful. But unfortunately –if the past years offer any clues, the rate of implementation is barely 40 percent for the first eight months of the year and then the remainder 40-50 percent are spent within a period of three to four months.
Therefore the rate at which the projects are being implemented — measured by the rate the funds are being spent, itself shows a major anomaly. Why are funds spent so slowly in the first part of the year and then show a major jump–almost as if there is a mad dash to spend the funds in the later parts of the year. The haste at which these funds are being spent must be looked into to figure out the reason for the anomaly.
The main reason for this is the cut in the aid from foreign sources. Conditions attached by donors like the World Bank were chiefly delaying the fund disbursement for development projects. This was also delaying the implementation of the aided-projects, necessitating the downward revision of the overall ADP size.
The rules and regulations imposed by donors are there, of course, to ensure that projects are implemented successfully and efficiently, without there being any corruption in the procurement or implementation phases of the projects. Therefore it stands to reason that if the government get lesser number of funds from the foreign donors it is due to the inability of the government to reassure the donors that their funds are being implemented properly.
And that, therefore, is a basic failing of the administration–not the donors. The donors will happily provide funds if they see that the rate at which they are being implemented is successful. But unfortunately –if the past years offer any clues, the rate of implementation is barely 40 percent for the first eight months of the year and then the remainder 40-50 percent are spent within a period of three to four months.
Therefore the rate at which the projects are being implemented — measured by the rate the funds are being spent, itself shows a major anomaly. Why are funds spent so slowly in the first part of the year and then show a major jump–almost as if there is a mad dash to spend the funds in the later parts of the year. The haste at which these funds are being spent must be looked into to figure out the reason for the anomaly.
