ADP spending fails to cross half mark in 1l months of FY26
Low implementation was expected given exceptional circumstances, says economist
Despite 11 months having passed in the current fiscal year, ministries and divisions have failed to spend even half of the allocation under the Annual Development Programme (ADP), shows the latest data from the Implementation Monitoring and Evaluation Division (IMED).
Data published today (25 June) showed that only Tk1,00,763 crore was spent during the July-May period of FY2025-26, representing 48.23% of the revised ADP allocation.
The government had allocated Tk2,08,935.53 crore under the revised ADP for FY26, including funding from development partners and implementing agencies.
Also, the expenditure during the first 11 months of the fiscal year was Tk10,242 crore lower than the corresponding period of the previous fiscal year. In FY25, ADP implementation reached Tk1,11,005.73 crore (49%) during the July-May period.
Keep updated, follow The Business Standard's Google news channel
The slowdown is even more pronounced compared to FY24, when development spending stood at Tk1,46,375.50 crore (57.54%) in the first 11 months of the fiscal year.
IMED officials said the previous fiscal year did not see a normal environment for development spending. Following the fall of the Awami League government in August 2024, administrative instability emerged, while many project directors and contractors left.
They said the situation continued into the current year. With the government focused on the election, its activities became largely polls-oriented, slowing the pace of development work.
After taking office, the new government began reviewing projects. A screening process was launched to identify projects that were not aligned with their election manifesto. Officials said the review of around 1,300 projects has also slowed implementation.
Mustafa K Mujeri, former director general of BIDS, said the low implementation rate this fiscal year was expected given the exceptional circumstances.
"Most of the government's attention was focused on the election and carrying out reforms. As a result, development projects could not receive the same level of priority," he said.
The economist said past practice showed attempts to boost spending at the end of the fiscal year often created risks of wasteful expenditure.
"Unnecessary or rushed spending may create further problems in the future. The focus should remain on proper planning and quality implementation," he added.
Spending by ministries, divisions
Data shows expenditure during July-May from government funds reached Tk59,789 crore, or 46.71% of the allocation. Spending from foreign loans and grants stood at Tk35,510 crore, or 49.32%, while agencies spent Tk5,465 crore from their own funds.
Only 15 of the 57 ministries and divisions managed to utilise at least half of their allocations. These 15 ministries and divisions accounted for 70.97% of the total ADP allocation, making their performance crucial to overall implementation.
Among the largest recipients, the Health Services Division posted the weakest performance, spending just 25.87% of its allocation. The Ministry of Primary and Mass Education utilised 35.18%, while the Ministry of Railways spent 42.46%.
The Technical and Madrasa Education Division implemented 44.42%, the Secondary and Higher Education Division 47.35%, and the Road Transport and Highways Division 46.23%. The Ministry of Housing and Public Works achieved a slightly better rate of 50.25%.
