Dismal foreign aid use against ambitious targets
The civil aviation and tourism ministry is probably the major recipients of development budget this fiscal year. But, it were able to spend a paltry 5.7 % of the Tk 3,864 crore allocation in the first seven months.
What is a whole lot worse, it couldn't spend a cent from its foreign-aided portion, which stands at Tk 2,500 crore.
Overall, foreign aid utilisation so far this fiscal year cuts a dismal picture. The ministries and division got Tk 71,800 crore in fiscal 2019-20 on the trunk of huge pipelines of the cheap funds. However they were able to spend 27.96 per cent, or Tk 20,073 crore, of the total outlay.
Foreign aid utilisation in the total annual development programme dropped 10.88 % over the seven months although the federal government has set an ambitious target for spending from external sources.
The government plans to invest $8 billion from the pipeline this fiscal year, up from $6.2 billion a year earlier, which is the highest yet, according to data from the Economic Relations Division.
At this point last fiscal year, foreign aid utilisation was Tk 22,526 crore, which was 37.54 per cent of total foreign aid allocation for fiscal 2018-19.
Although foreign aid commitment rises each year, the government can't spend a lot of it. Due to this fact, the quantity of unused aid is turning up.
Foreign assist in the pipeline surged to a record $48.11 billion at the end of the last fiscal year despite spending more of the committed money.
The amount of foreign aid has been increasing during the last few years as Russia, China, Japan and India have committed more funds to implement mega infrastructure projects.
Due the slow implementation of the projects the fund utilisation is low, although lenders are ready to give a lot of funds to Bangladesh.
Delays in appointment of project staffers, contract approvals and revision of project design and costs are often blamed, the official said.
Weak capacity of implementing agencies, coordination issues with the look commission, procurement delays and difficulties in managing the contractors further hinder implementation and slow down fund disbursement, he added.
The federal government allocated foreign funds for the upgradation work of three airfields under the civil aviation ministry, like the Hazrat Shahjalal International Airport.
None of the airports spent an individual taka from the allocation between July and January.
The ministry undertook a Tk 13,610 crore project to include a terminal at the HSIA in 2013. Later the look was amended and the first revision of the cost came in December this past year, raising it to Tk 21,399 crore.
Of the top recipients, the water resources ministry received an allocation of Tk 1,456 crore from the aid pipeline. It spent only 8.46 % of the funds.
The railways ministry expended 14.05 per cent of the Tk 8,311 crore assigned to it.
Of the allocation from the foreign-aided portion, the Prime Minister's Office spent 14.34 %, the health services division 21 %, the roads and highways division 22 %, the primary and mass education division 23.24 %, and the science and technology ministry 28.52 %.
The power division stood out, using 56.69 % of the allocation, followed by the bridges division at 53.61 % and LGRD at 34.92 per cent.
The full total size of ADP for the existing fiscal year is Tk 215,114 crore. Of the sum, Tk 68,980 crore, or 32.07 per cent, was spent in the seven-month period. The expenditure stood at 34.43 per cent a year earlier.
Of the ADP, 81 % visited 15 ministries and divisions. Out of these, eight ministries and divisions spent higher than the average.
Nearly 36 % of government-owned funds was spent between July this past year and January this year, up from 32.41 per cent a year earlier.
Fund use by the state-owned enterprises was 14.71 per cent of the allocation, which is way less than the 39.81 per cent logged in a year earlier.
