Annual Development Programme: Difference between revisions

Revision as of 20:32, 13 October 2023

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.

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. The ADP for 1962-63 was divided into three parts, each with projects of a group of sectors. Part-I included projects of 10 sectors, namely Water, Power, Health, Social Services, agriculture, housing and Settlement, Education and Training, Roads and Communications, Industries, and Manpower and Employment. Projects in Part-II covered large industries such as the East Pakistan Industrial Development Corporation and Pakistan Eastern Railways and Part-III comprised schemes transferred from the central government of Pakistan.

Composition of ADP demonstrated some changes in the first ADP (1965-66) of the Third Five-Year Plan (1965-70). The ADP of the year 1965-66 did not have the different parts and comprised projects grouped in 12 sectors in a new order with a total allocation of Rs 1,951.30 million. The sectors were Water, Power, Agriculture, Industries, Fuel and Minerals, Transport and Communications, Physical Planning and Housing, Education and Training, Health, Social Welfare, Manpower and Employment, Survey and Statistics, and Works.

In 1972-73, the size of the ADP was Tk 5.01 billion, 75% of which was supported by foreign aid. The ADP size has grown consistently over the years and became Tk 9.5 billion in 1975-1976, Tk 21.23 billion in 1979-1980, Tk 50.46 billion in 1987-1988 and Tk 121.00 billion in 1995-1996. 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. The annual development programme for 2000-2001 was allocated at Tk. 175 billion, of which 43% was financed through foreign aid and loans. In FY 2011, 25.4% of the total annual development programme was supported through foreign loans and grants. However, the foreign finance of ADB rose to 40.6% in FY 2021 and it is estimated to be 48.6% for FY 2022 (see Chart 1).

File:ADPChar(2010-2022).jpg

From the above chart, we can see that the contribution of internal resources to ADP has increased significantly. Continuing this trend of resource allocation from domestic sources might accelerate overall economic growth and development. On the other hand, external sourcing is not that much comparative to internal sourcing except two financial years FY 2010 and FY 2022.

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 include 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. Note that it is not possible to include all projects in a particular year in ADP. Certain projects are kept out of ADP and are implemented through allocation of funds from the revenue budget of a particular year. The Ministry of Finance announces specific policies for the implementation of all projects. The implementation process of the projects is monitored by the Ministry in the light of the policy.

Every year the quantum of allocation in the annual development programmme is being increased on the ground of particular national strategy in relation to eco-social and infrastructural development of the country, human resource development, reduction of poverty and enrichment of income.

The total amount of ADP is Tk. 2.21 trillion in FY 2021. The sectors, including the share of allocations to the development sector in FY 2021, are Transport and Communication (25.2%), Education and Technology (19.4%), Local Government and Rural Development (15.7%), Electricity and Fuel (12.4%), Agriculture (5.5%) and Social Security and Welfare (3.1%). In addition, 7.1 percent has been allocated to other sectors. The government is set to approve a Tk. 2.46 trillion annual development programme (ADP) for the next fiscal year (FY) 2022-23, aiming to facilitate quick recovery of the economy from the disaster of the pandemic. [Abul Kalam Azad]

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-'''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, Government|budget]] approved by the parliament.
+'''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, Government|budget]] approved by the parliament.
-The [[Planning Commission|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|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|foreign aid]].
+The [[Planning Commission|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|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|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. The ADP for 1962-63 was divided into three parts, each with projects of a group of sectors. Part-I included projects of 10 sectors, namely Water, Power, Health, Social Services, [[Agriculture|agriculture]], [[Housing|housing]] and Settlement, Education and Training, Roads and Communications, Industries, and Manpower and Employment. Projects in Part-II covered large industries such as the East Pakistan Industrial Development Corporation and Pakistan Eastern Railways and Part-III comprised schemes transferred from the central government of Pakistan.
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 Composition of ADP demonstrated some changes in the first ADP (1965-66) of the Third Five-Year Plan (1965-70). The ADP of the year 1965-66 did not have the different parts and comprised projects grouped in 12 sectors in a new order with a total allocation of Rs 1,951.30 million. The sectors were Water, Power, Agriculture, Industries, Fuel and Minerals, Transport and Communications, Physical Planning and Housing, Education and Training, Health, Social Welfare, Manpower and Employment, Survey and Statistics, and Works.
-In 1972-73, the size of the ADP was Tk 5.01 billion, 75% of which was supported by foreign aid. The ADP size has grown consistently over the years and became Tk 9.5 billion in 1975-1976, Tk 21.23 billion in 1979-1980, Tk 50.46 billion in 1987-1988 and Tk 121.00 billion in 1995-1996. 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.
+In 1972-73, the size of the ADP was Tk 5.01 billion, 75% of which was supported by foreign aid. The ADP size has grown consistently over the years and became Tk 9.5 billion in 1975-1976, Tk 21.23 billion in 1979-1980, Tk 50.46 billion in 1987-1988 and Tk 121.00 billion in 1995-1996. 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. The annual development programme for 2000-2001 was allocated at Tk. 175 billion, of which 43% was financed through foreign aid and loans. In FY 2011, 25.4% of the total annual development programme was supported through foreign loans and grants. However, the foreign finance of ADB rose to 40.6% in FY 2021 and it is estimated to be 48.6% for FY 2022 (see Chart 1).
-The size of the ADP of the year 2000-2001 was greater than that of the previous year by Tk 20 billion and that of 1972-73 by Tk 169.99 billion. The ADP of 2000-2001 included 1,299 projects, of which only 190 were new and the remaining 1,109 were ongoing ones. These projects were grouped as main programme projects (1,097), technical assistance projects (150), self-financed projects (46), and food for works programmes (6 projects). In addition, the ADP had a block allocation for financing development projects undertaken by local government authorities such as the upazilas and municipalities and the district councils of the [[Chittagong Hill Tracts|chittagong hill tracts]] region.
+[[Image:ADPChar(2010-2022).jpg|right|thumbnail|400px]]
+From the above chart, we can see that the contribution of internal resources to ADP has increased significantly. Continuing this trend of resource allocation from domestic sources might accelerate overall economic growth and development. On the other hand, external sourcing is not that much comparative to internal sourcing except two financial years FY 2010 and FY 2022.
-The ADP of the year 2000-2001 grouped projects in 17 sectors and their names with share of allocation were Agriculture (5.05%), Rural Development and Institutions (10.42%), Water Resources (5.70%), Industry (2.03%), Power (12.58%), Oil, Gas and Natural Resources (3.74%), Transport (14.11%) and [[Bangabandhu Jamuna Multipurpose Bridge|bangabandhu jamuna multipurpose bridge]] (0.62%), Communication (2.79%), Physical Planning and Water Supply (6.37%), Education and Religious Affairs (13.10%), Sports and Culture (0.64%), Health, Population and Family Welfare (9.72%), Mass Media (0.61%), Social Welfare, Women's Affairs and Youth Development (1.22%), Public Administration (1.27%), Science and Technology (0.43%) and Labour and Manpower (0.10%). Funds allocated as block allocations included those for thanas (1.29%), for municipalities (0.66%) and for Chittagong Hill Tracts (0.29%). In addition, some new projects in the Chittagong Hill Tracts area received 0.11%, allocation for development of special areas except Chittagong Hill Tracts accounted for 0.03%, plain land district councils were given 0.37%, four city corporations 0.66%, Dhaka City Flood Protection Project 1.13%, Dhaka Integrated Flood Protection-cum East Bypass Multipurpose Road Project 0.06%, Canal digging programme 0.17%. About one per cent of the total ADP fund remained unallocated. Two specilised programmes are self-financed programme (1.46%), and Food for Works Programme (2%). Of the total ADP amount of Tk 175 billion, Tk 96.89 billion or 55.4% was planned to be financed by local currency, Tk 74.61 billion or 42.6% by project aid from foreign sources, and Tk 3.5 billion or 2% by counterpart fund generated through disbursement of food aid.
+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 include 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. Note that it is not possible to include all projects in a particular year in ADP. Certain projects are kept out of ADP and are implemented through allocation of funds from the revenue budget of a particular year. The Ministry of Finance announces specific policies for the implementation of all projects. The implementation process of the projects is monitored by the Ministry in the light of the policy.
-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.
+Every year the quantum of allocation in the annual development programmme is being increased on the ground of particular national strategy in relation to eco-social and infrastructural development of the country, human resource development, reduction of poverty and enrichment of income.
-Every year the quantum of allocation in the annual development programmme is being increased on the ground of particular national strategy in relation to eco-social and infrastructural development of the country, human resource development, reduction of poverty and enrichment of income. The statistics suggest that the actual expenditure in this head has been rocketed at the rate of 10 percent per annum in contrast of preceding ten years till 2009-10. On the other hand, in the year 2001-02 and 2006-2007, the allocations in this head plunged than previous years. Worthy mentionable that comprehensive implementation of the Annual Development Program (ADP) is an indispensable part of overall development of the economy. As far as the matter concerned, Bangladesh has failed to exhibit enviable dexterity. The data depict that although about 94% of allocation of total expenditure in the year 1999-00 has been spent, the rate faced a hectic bump and rate turned downward reaching 83%. Pleasantly the trend was obviously upward in the succeeding years. A significant aspect includes, although the volume of Annual Development Program (ADP) of the year 2009-10 is immense than the previous years, the rate of implementation in contrast to the preceding years is better and more indeed. It is an indication of power and nimbleness to the implementation of projects in the head of Government.
+The total amount of ADP is Tk. 2.21 trillion in FY 2021. The sectors, including the share of allocations to the development sector in FY 2021, are Transport and Communication (25.2%), Education and Technology (19.4%), Local Government and Rural Development (15.7%), Electricity and Fuel (12.4%), Agriculture (5.5%) and Social Security and Welfare (3.1%). In addition, 7.1 percent has been allocated to other sectors. The government is set to approve a Tk. 2.46 trillion annual development programme (ADP) for the next fiscal year (FY) 2022-23, aiming to facilitate quick recovery of the economy from the disaster of the pandemic.  [Abul Kalam Azad]
-Another pleasurable trend may therefore be illustrated that in this head the contribution of domestic resources have been significantly increased in last ten years till 2009-10. Except to the year 2007-08, the rate was climbing nearly 50% per annum. Due to natural calamity viz. Cyclone and Cider in 2007-08, a great deal of foreign aid was brought to be given input to fill the leakage of economy and consequently to minimize the Annual Development Program of the year aforesaid, the foreign resources had jumped upward and the domestic resource fell down up to 40%. Furthermore, the sum ascended to 58%. It may, however, be considered as a positive indication of being inclined to the domestic source.'
-In the year 2009-10, 12 major heads have so far been allocated which include:' Agriculture (5.8%). Rural Development and Organisation (18.38%), Water Resources (2.01%), Industry (1.57%), Electricity (8.63%). Oil, gas and natural Resources (6.03%), Transportation (5.28%), Communication (1.39%), Physical planning, Water supply and Housing (9.49%), Education and Religion (18.60%) and Health and Population (10.46%). In addition, 12.40% has been allocated in miscellaneous heads. [Abul Kalam Azad]
 [[bn:বার্ষিক উন্নয়ন কর্মসূচি]]