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ADP spending hits 15-year low amid political turmoil

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Staff Reporter :

The Annual Development Programme (ADP) spending in the July-October period of the 2024-25 fiscal year was the lowest in the past 15 years, primarily due to work disruptions caused by political turmoil.

According to the latest data from the Implementation Monitoring and Evaluation Department (IMED), Tk 21,987.17 crore was spent on ADP projects during this period, representing only 4.75 percent of the total allocation of Tk 278,288.90 crore for FY25.

Several factors have contributed to this decline in the implementation rate, including government spending cuts, political unrest in July and August, and the reassessment of large projects, according to relevant officials.

In comparison, the amount spent during the same period in FY2023-24 was Tk 31,358.50 crore, which was 11.58 percent of the total allocation.

The drop of Tk 9,371 crore highlights the sluggish pace of development projects.

Historical data from IMED, dating back to FY2010-11, shows that ADP implementation rates during the first four months of previous fiscal years were typically between 12 percent and 13 percent.

IMED Secretary Abul Kashem Md Mohiuddin explained that the interim government’s review of ongoing projects has led to a slowdown in ADP implementation. “Many non-priority projects are being reconsidered, causing delays,” he said.

Officials also noted that ADP implementation was affected by the political unrest in July.

The situation remained unstable in August, following the ousting of the then prime minister on 5 August and the appointment of Prof Muhammad Yunus as the interim government’s chief adviser three days later.

This leadership transition created administrative instability throughout August, further stalling development activities.

In the previous fiscal year, FY24, government agencies spent the lowest percentage of allocated funds under the revised ADP in four years. The revised ADP implementation rate in FY24 was 80.92 percent of the allocated funds, down from 85.17 percent the previous year.

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