ADP spending drops to 21.18 pc in Jul–Jan, lowest in nine years

Staff Reporter :

Government spending under the Annual Development Programme (ADP) has fallen to its lowest level in nine years during the July–January period of fiscal year (FY) 2025–26, reflecting a significant slowdown in the pace of development project implementation.

According to official figures released on Monday by the Implementation Monitoring and Evaluation Division (IMED), total expenditure on ADP projects stood at Tk50,556.29 crore in the first seven months of the current fiscal year.

This is the weakest July–January performance recorded over the past nine fiscal years.
In comparison, ADP spending during the same period of FY2024–25 amounted to Tk59,876.87 crore—Tk9,320.58 crore more than the outlay recorded this year.

Notably, even in FY2024–25, when government operations were disrupted by student protests, political unrest and administrative uncertainty, development spending in the first seven months remained higher than the current level.

IMED data show that the previous lowest July–January ADP expenditure was recorded in FY2016–17, when Tk39,973 crore was spent.

However, that figure came from a much smaller ADP size, making the current year’s performance particularly concerning in proportional terms.

The rate of ADP implementation has also weakened noticeably. During July–January of FY2025–26, only 21.18 percent of the total ADP allocation has been utilised—the lowest implementation rate for the corresponding period in recent years.

In FY2024–25, the rate stood slightly higher at 21.52 percent. By contrast, implementation rates were considerably stronger in FY2023–24 and FY2022–23, at 27.11 percent and 28.16 percent respectively.
For the ongoing fiscal year, the government allocated Tk2,38,695.64 crore under the ADP, including funds from autonomous and semi-autonomous organisations.

With just over one-fifth of the allocation spent in the first seven months, concerns are growing over whether ministries and implementing agencies will be able to accelerate execution sufficiently in the remaining months of the fiscal year.

Economists and policy analysts warn that prolonged weakness in ADP spending could have broader implications for the economy. Development expenditure plays a key role in stimulating investment, generating employment and supporting domestic demand.

A slowdown, particularly in large infrastructure, transport, energy and social sector projects, may dampen economic momentum at a time when recovery remains fragile.

If the current trend persists, the subdued pace of project implementation could not only delay the completion of priority development initiatives but also affect overall growth prospects, underscoring the need for stronger coordination, faster approvals and more effective project management in the months ahead.