Muhid Hasan :
The implementation of the Annual Development Programme (ADP) experienced a significant downturn during the first half of the current financial year 2024-25, as spending reaching only 17.97 per cent of the total development budget.
During the July-December period of FY25, government agencies implemented development projects worth Tk 50,002 crore, marking a sharp decrease of Tk 11,737.35 crore compared to the same period in the previous fiscal year, according to the data released yesterday by the Implementation Monitoring and Evaluation Division (IMED) of the Planning Ministry.
The implementation rate during the first half of FY24 was 22.48 per cent, with agencies utilizing a total of Tk 61,739.69 crore under the ADP.
Earlier, as of November this fiscal year, only 12.29 per cent of the ADP was implemented, reflecting the lowest utilization rate in a decade.
The ADP allocation for the current fiscal year was set at Tk 278,288.90 crore by the outgoing Awami League government when the budget was passed.
Typically, ADP implementation during the July-December period ranges from 23 per cent to 25 per cent, with rates of 23.53 per cent in FY23 and 24.06 per cent in FY22.
Experts have attributed this slowdown to the review of ongoing and newly proposed projects, coupled with a reduction in fund disbursements. Following the Awami League’s removal from power, the interim government prioritised project implementation based on necessity.
Additionally, instability following the interim government’s assumption of power in early August led to many contractors abandoning their projects, further stalling development activities.
Given these circumstances, the decline in ADP implementation is not unexpected, experts noted.
According to IMED, government funds utilized between July and December amounted to Tk 26,130 crore, or 15.84 per cent of the allocation – the lowest expenditure for this period in any fiscal year. In the same period last year, Tk 34,429 crore, or 20.37 per cent, was utilized.
Foreign loans and grants were utilized at a rate of 19.61 per cent, or Tk 19,609 crore, in H1FY25, compared to 26.14 per cent, or Tk 24,569 crore, during the previous fiscal year.
IMED data further reveals that 19 ministries and departments spent less than 10 per cent of their allocated government funds. These include the Health Services Division, Ministry of Social Welfare, Ministry of Commerce, and Ministry of Defence.
Additionally, 15 ministries and divisions were allocated 76.65 per cent of the funds for the current fiscal year.
Among these, the Health Services Division spent only 4.92 per cent of its allocation. Other ministries with less than 10 per cent ADP implementation include the Bridges Division, Health Education Division, and Ministry of Shipping.
In contrast, the Local Government Division, Power Division, and Ministry of Agriculture are leading in ADP implementation, with utilization rates of 24.94 per cent, 30.58 per cent, and 21.07 per cent, respectively.
Moreover, the Planning Commission (PC) is recently sending letters to all the ministries and divisions to complete their ongoing projects as quickly as possible to accelerate the implementation rate of the Annual Development Programme (ADP), which is record low right now.
According to the Ministry of Planning sources, the step has been taken to avert stagnation of the economy, as both public and private investments are significantly low after fall of the Awami League regime in last August.
Meanwhile, the overall ADP implementation for FY24 was the lowest in four years, achieving 80.92 per cent of the revised budget. By comparison, the ADP execution rate for FY23 was 85.17 per cent.
