Dhaka: The interim government, nearing the completion of its one-year term following a student-led uprising, is focusing on quality expenditure in development projects while preventing fund misuse to ensure tangible benefits for the populace.
According to Bangladesh Sangbad Sangstha, the government is moving away from previously extravagant practices of large allocations in Annual Development Programmes (ADPs) that often led to fund misuse due to the executing agencies’ lack of capacity. The interim administration has implemented a strategy that allows for intense monitoring of ongoing projects to ensure optimal utilization of taxpayers’ money.
As part of this initiative, the government may revise the ADP for fiscal year 2026 in December, an unusual step as revisions typically occur in March. This adjustment aims to provide implementing agencies ample time to utilize revised allocations effectively.
Planning Adviser Dr. Wahiduddin Mahmud, discussing the Ministry of Planning’s operations and reform roadmap, indicated that the revised ADP was downsized in the recently concluded fiscal year 2025, with a reduced implementation rate due to various issues. He emphasized the strategy’s goal to prevent fund misuse and pursue cost-efficiency, noting that project implementation previously suffered from mismanagement and contractor abscondment following the power shift last year.
Dr. Mahmud expressed optimism about improved budget and ADP implementation in the current fiscal year, citing a more manageable ADP size. He suggested revising the ADP in December to accelerate implementation, explaining that revising in March often leaves insufficient time for ministries and divisions to utilize additional allocations fully.
Dr. Monzur Hossain, Member of the Planning Commission’s General Economics Division, highlighted qualitative changes in the planning process over the past year, noting the exclusion of unnecessary projects and increased scrutiny of ongoing projects, which resulted in a reduced RADP implementation rate in FY25. He emphasized that while expenditure has decreased, quality has improved, with funds being allocated correctly.
Dr. Wahiduddin Mahmud also addressed the macroeconomic state, asserting that the previous regime’s economic devastation no longer exists. He acknowledged ongoing challenges like enhancing investment and attracting foreign direct investment but noted that the economy is on an upward trajectory.
The government’s efforts to activate the Implementation, Monitoring, and Evaluation Division (IMED) have led to increased field-level inspections and prompt corrective measures for irregularities. The amended Public Procurement Rules (PPR) and progress in e-tendering are expected to enhance transparency and efficiency in procurement processes.
Dr. Mahmud assured that the government is scrutinizing project formulation and implementation, renegotiating loan agreements for large-scale projects, and ensuring reforms to improve procedures. Despite challenges with cost and time overruns from projects initiated by the previous regime, the government is committed to completing ongoing projects while minimizing unnecessary expenditure. He emphasized the importance of small entrepreneurs in the economy alongside the services, agriculture, and RMG sectors.