ADP Q1 spend rises to 5pc, drops Tk1,057cr

Staff Reporter:

The government’s development spending under the Annual Development Programme (ADP) saw a marginal improvement in implementation during the first quarter (July–September) of the 2025–26 fiscal year, although actual expenditure dropped compared to the same period a year earlier.

According to data released by the Implementation Monitoring and Evaluation Division (IMED) today (19 October), ministries and divisions executed 5.09percent of the total ADP allocation in the first three months of FY26 — slightly higher than 4.75percent achieved in the corresponding period of FY25. However, in terms of absolute spending, outlays declined by Tk1,057 crore to Tk12,158 crore, down from Tk13,215 crore a year earlier.

Officials said the improvement in implementation percentage largely reflects adjustments in total allocation rather than a genuine acceleration of project activity.

IMED data indicates that the typical first-quarter implementation rate over the past decade ranged between 7.5percent and 9.5percent, underscoring the government’s continued struggle to energize early-year development spending.

Economists and IMED officials attribute the sluggish start to multiple factors including lengthy project approval procedures, tendering delays, bureaucratic inefficiency, and capacity constraints among project directors and contractors.

Delays in fund release and coordination gaps between ministries and implementing agencies have also contributed to the slowdown.

The FY26 ADP, amounting
to Tk2.65 lakh crore, prioritizes infrastructure, energy, transport, and education projects. However, analysts caution that unless implementation picks up sharply in the next two quarters, achieving full-year development targets will remain challenging.

A senior IMED official noted that the division has intensified monitoring and is considering stricter deadlines for project execution to prevent backloading of expenditure toward the end of the fiscal year — a recurring issue that often leads to rushed and inefficient spending.