Dhaka: The Annual Development Programme (ADP) implementation rate has fallen to a five-year low in the first seven months of the current fiscal year, marking a continuation of a declining trend under the interim government’s tenure, as per the latest progress report.
According to United News of Bangladesh, data from the Implementation Monitoring and Evaluation Division (IMED) under the Ministry of Planning indicates a significant slowdown in spending and execution compared to previous years. This trend has raised concerns about potential delays in development activities.
The implementation progress for the July-January period remains lackluster. Total spending during the first seven months of FY2025-26 amounted to Tk 50,556.29 crore, representing only 21.18 percent of the annual allocation. In the same period of FY2024-25, implementation reached Tk 59,876.87 crore, or 21.52 percent.
In FY2023-24, the implementation rate for the July-January period was 27.11 percent, with expenditure totaling Tk 74,464.19 crore. The rate was 28.16 percent in FY2022-23, with spending of Tk 72,090.21 crore, while FY2021-22 recorded a 30.21 percent implementation with Tk 71,532.97 crore spent.
For the current fiscal year 2025-26, the total ADP allocation is Tk 238,695.64 crore. Comparatively, allocations in recent years were Tk 278,888.90 crore in 2024-25, Tk 274,874.02 crore in 2023-24, Tk 265,003.27 crore in 2022-23, and Tk 236,793.09 crore in 2021-22.
Officials noted that the current year’s rate is the lowest among the past five years for the corresponding period, indicating a continued slowdown in project execution.
Monthly data further highlights the sluggish pace. In January alone, ADP implementation in FY2025-26 was Tk 8,679.42 crore, accounting for just 3.64 percent of the annual allocation. In January of the previous fiscal year, spending was slightly higher at Tk 9,874.53 crore, or 3.55 percent of the allocation.
The persistent slowdown is attributed to several factors, including administrative adjustments, cautious expenditure management, and slower approval processes during the interim administration period. Project officials have cited delays in procurement, land acquisition, and fund release as key reasons for the lower execution rate.
Economists emphasize that the ADP is crucial for driving economic activity, employment, and infrastructure development. A sustained slowdown in implementation could affect overall growth momentum, particularly in sectors reliant on public investment.
Despite the lower execution rate, planning ministry officials remain hopeful that spending will accelerate in the remaining months of the fiscal year, as ministries and agencies typically expedite project implementation towards the end of the budget cycle.
The ADP serves as the government’s primary development budget, financing major infrastructure, social sector, and regional development projects. A higher implementation rate generally indicates strong administrative capacity and efficient project management, while slower spending often signals bottlenecks in execution.
With less than half the fiscal year remaining, the pace of implementation in the coming months will be critical in determining whether the government can close the gap with previous years or if FY2025-26 will conclude with the lowest execution rate in recent times.