Staff Reporter :
With a focus on terminating “unnecessary and politically motivated” development projects initiated by the previous Awami League administration, the interim government has adopted a cautious approach in approving fund disbursements for projects listed in the annual development programme (ADP).
This policy has resulted in the lowest ADP implementation rate in at least a decade for the first five months of the current fiscal year, which began on 1 July. The implementation rate during this period was just 12.29 per cent, a sharp decline compared to 17.1 per cent in the same period of the last fiscal year (2023-24) and 18.4 per cent in 2022-23.
The previous fiscal year (2023-24) recorded the lowest annual ADP implementation rate in four years, at 81 per cent, compared to 85.2 per cent in 2022-23.
After the fall of the Awami League government on 5 August, following a student-led uprising, the interim government, led by Nobel Laureate Professor Muhammad Yunus, took office on 8 August.
According to the Implementation Monitoring and Evaluation Division (IMED), ADP spending during the July-November period of the current fiscal year amounted to Tk 34,214.55 crore, significantly lower than the Tk 46,857.38 crore spent in the same period of the previous fiscal year.
This represents a major setback in implementing the Tk 278,288.90 crore ADP passed in the Awami League’s final budget.
The interim government faces global economic challenges, rising inflation, and increasing debt burdens, which have tightened fiscal space. The Planning Ministry has prioritised reallocating resources to critical sectors, such as food security and climate adaptation.
Several projects have reportedly been plagued by inflated budgets, lack of transparency, and delays in execution. These inefficiencies, coupled with the slow ADP implementation, have created bottlenecks in the development process.
Planning Adviser Dr Wahiduddin Mahmud acknowledged the sluggish ADP implementation rate, describing the situation as lacklustre. He announced that the interim government would introduce a revised, emergency-focused budget to address pressing challenges.
Dr Mahmud also assured that the government would accelerate ADP implementation to create employment opportunities and boost rural money circulation. The strategy aims to ensure the judicious use of limited resources while addressing the country’s immediate economic and social needs.
