Bangladesh’s development expenditure was low, in line with the past average. The Annual Development Programme (ADP) sets aside funds for development projects across economic sectors every year. The ADP accounts for the bulk of the government’s development spending (more than 90%) and c.30% of total state spending, notes Standard Chartered.
Despite its high priority – given Bangladesh’s severe infrastructure deficit – poor ADP utilisation (spending as a percentage of the budget target) seems to be a chronic condition 1. So far in FY15, ADP utilisation has been slow and in line with the historical average. ADP spending normally accelerates in the second half of the fiscal year as lack of approvals tends to delay spending in the first half. However,the escalation of political strikes in H2 – FY15 implies lower-than-budgeted ADP spending again for the current fiscal year.
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