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Economic Features |
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ADP OF BANGLADESH |
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Annual Development Programme of Bangladesh .
Annual Development Programme (ADP) an organised list of projects in various sectors and allocations for them for a year out of a five-year plan period for implementation of the government's development policies, programmes and investments in the plan. The ADP is prepared on the basis of the year's development Budget approved by the parliament.
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The planning commission formulates the ADP of the government of Bangladesh in the light of basic objectives and goals stated in a Five-Year Plan. The draft is then placed for the approval of the Executive Committee of the National Economic Council (ECNEC). While preparing an ADP, fields and projects related to national economic development get more priority and concentration. Funds are allocated to implement development projects included in the ADP. Both internal (domestic) and external (aid) funds are used to finance projects. Potential availability of funds often becomes a major consideration in preparing the ADP, which has historically remained dependent upon Foreign Aid.
The practice of formulating ADP by splitting a Five-Year Plan and implementation thereof started since the First Five-Year Plan (1955-60) of the provincial government of East Pakistan. The size of the ADP of the year 1962-63 under the Second Five-Year Plan 1960-65 of the government of East Pakistan was Rs 1,358.33 million.
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ADP Structure since the begining :
In 1965-1966, size of ADP was Rs 1,951.30 million
In 1972-1973, size of ADP was Tk 5.01 billion
In 1975-1976, size of ADP was Tk 9.5 billion
In 1979-1980, size of ADP was Tk 21.23 billion
In 1987-1988, size of ADP was Tk 50.46 billion
In 1995-1996, size of ADP was Tk 121.00 billion.
In 2000-2001. size of the ADP was Tk 175 billion
Revised ADP for 2010-2011 was TK. 35,830 crore
ADP for the fiscal year 2011-12 is Tk 46,000 crore giving highest priority to power, energy, gas and natural resources sector. Tk 27,315 crore (59%) will come from the government fund while Tk 18,685 crore (41%) from project assistance
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The ADP remained heavily dependent upon foreign aid. The share of foreign funds in financing ADP allocations was more than 70% until 1979-1980; it dropped to about 64% in the following two years and then again increased to about 80% in the next three years. The share was more than 90% in the years 1987-1988 and 1990-1991.
However, it started to decline in successive years and was 66% in 1995-1996. In 2000-2001, the estimated size of the ADP was Tk 175 billion, about 43% of which were planned to have been financed by foreign aid.
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The government has a practice of revising the ADP almost every year and the main reason is the failure to receive disbursements of the foreign aid in a general management environment of poor foreign aid utilisation. Sometimes, the government changes the ADP by inclusion of new or exclusion of some listed projects in the midst of the year. More often, delays in approval of projects or in creation of appropriate infrastructure facilities for them cause such revisions. Other causes for revision includes procurement related problems and shortage of taka counterpart fund for the projects.
There are cases, when the ADPs are revised in favour of increasing allocations in response to claims of the implementing ministries/agencies for additional allocation of both local and foreign currencies. A part of such additional demand for funds is met from the head of unexpected expenditures in the annual budget. ADPs, however, do not include all development projects of a year. Some projects are kept outside the ADP and are implemented with funds allocated from the revenue budget. Monitoring of the use of funds allocated by ADP is done by a set of specific rules issued by the Ministry of Finance.
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