From Allocation to Execution: Evaluating Annual Development Plan Implementation in Bangladesh

Prof. Dr. Zahurul Alam :

Bangladesh’s Annual Development Plan (ADP) is the backbone of its socioeconomic progress. It sets the roadmap for infrastructure expansion, public services improvement, poverty reduction, and long-term economic transformation.

Yet in recent years, the implementation of the ADP has shown troubling signs of stagnation, raising questions about development effectiveness, policy coordination, and future growth prospects.

The Annual Development Plan is Bangladesh’s key planning instrument that outlines government development projects and allocations across sectors every fiscal year.

It includes infrastructure projects (roads, bridges, power plants), social programs (education, health, water supply), and institutional initiatives that aim to uplift living standards and drive economic growth. ADP implementation reflects how effectively planned resources translate into real development outcomes.

ADP funds constitute a sizable portion of public expenditure. Efficient implementation ensures employment generation, improved services, and enhanced private sector confidence.

Conversely, delays or under-utilization waste scarce resources, hamper growth targets, and undermine public trust in governance.

Data from Bangladesh’s Implementation Monitoring and Evaluation Division (IMED) paint a stark picture. In the 2024-25 fiscal year, overall ADP implementation fell sharply. Only 67.85% of the revised ADP was executed, a substantial drop from 80.63% in the 2023-24 fiscal year, marking the lowest in two decades.

When viewed over shorter timeframes, the decline becomes even more evident:
By the first six months of the 2025-26 fiscal year, implementation was just 17.54%, a five-year low for mid-year performance.

In the same six-month period of FY24, the rate was 22.48%, and in earlier years hovered above 23%.
In December 2025, ADP expenditures were reported to be extremely low, around 12% of allocations after five months.

In July-August 2025, only 2.39% of funds were utilized, only slightly behind the prior year but still worryingly low.
These data indicate not just a one-off slowdown but a deepening structural problem where higher ADP allocations have not translated into faster execution.

A combination of political, administrative, and economic factors has contributed to slow ADP execution:
= Frequent changes in government and associated reshuffles of bureaucratic leadership often result in project delays.

Projects initiated by one administration may be re-evaluated, stalled, or deprioritized by another, causing procedural standstills. Many development initiatives suffered such reappraisals in the past fiscal cycle, slowing execution.

= Rigid procurement rules, lengthy approval processes for project proposals, and land acquisition hurdles slow implementation. Public agencies often struggle to secure timely clearances, delaying project starts or progress.

Planning Ministry officials have pointed to land acquisition and decision-making delays as persistent obstacles.
= Amid tighter fiscal conditions and efforts to curb deficits, authorities have adopted conservative spending.

While fiscally prudent, this caution has slowed development disbursements, particularly on large infrastructure projects.
= Shortages of experienced project managers, limited technical capacity in implementing agencies, and monitoring gaps reduce execution speed and quality.

The weak execution of the ADP doesn’t just stay on paper, it has widespread socioeconomic implications:
= Public investment is a key driver of economic growth.

Infrastructure projects improve productivity, lower transaction costs, and attract private investment. Low ADP implementation reduces public investment’s contribution to GDP growth, potentially leading to slower expansion of the economy over time.

= Delays in infrastructure development, roads, power, ports, create uncertainties for private businesses. Investors look for efficient logistics and predictable public services. When key projects lag, businesses tighten investment, slowing private sector job creation and innovation.

= Development projects create jobs, from construction workers to engineers. When projects slow, these employment opportunities diminish. Lower job creation can hurt incomes, especially in rural and semi-urban areas where alternative employment is limited.

= Bangladesh has historically made strides in reducing poverty and raising per capita income. However, slowed public investment undermines long-term improvements in productivity and human capital, potentially stalling gains in living standards.

The question is does low ADP implementation lead to stagnation? While it’s premature to declare full economic stagnation, the pattern of low ADP execution is worrying.

Sustained under-utilization shifts the economy toward inertia, where planned structural improvements and capacity additions fail to materialize, weakening long-term growth potential. The slower execution trends coincide with reported challenges such as stagnant private investment rates and subdued consumption in some sectors.

In policy terms, persistent under-performance could erode Bangladesh’s ability to reach its ambitious targets under the Vision 2041 and Sustainable Development Goals (SDGs). To maintain momentum, execution inefficiencies must be addressed swiftly.

Accelerating ADP implementation requires concerted action across political leadership, bureaucracy, and wider stakeholders:

= Reforming procurement rules, digitizing approvals, and decentralizing some decision-making can reduce delays. Creating a one-stop platform for project clearances could expedite execution.

= Investing in training for project planning and management across ministries and agencies would enhance execution efficiency. Recruiting experienced professionals and empowering them to take accountable decisions is key.

= Strengthening IMED’s role with real-time tracking dashboards and regular public disclosures can create accountability and early corrective action when projects fall behind.

= Political stakeholders must prioritize continuity in development priorities, insulating key projects from political shifts. A bipartisan mechanism for crucial national projects could help maintain momentum across administrations.

= Public-Private Partnerships (PPPs) can shift some development risk and execution to capable private entities, expediting project completion while leveraging private finance.

The Policymakersmust set realistic, clear priorities that align ADP projects with long-term growth strategies. Allocations should match institutional capacity, and milestone-based planning should be integrated for better monitoring.

Public servants play a frontline role in project execution. Clear performance metrics, incentives for timely implementation, and accountability for delays can motivate more dynamic action. Reforming rigid hierarchies and encouraging proactive problem-solving at the agency level are critical.

Decentralizing aspects of implementation to local authorities, where appropriate, can improve responsiveness and address local bottlenecks faster. Incorporating community feedback systems helps identify execution issues early.

The Annual Development Plan remains one of Bangladesh’s most powerful tools for achieving sustained economic advancement and social progress. However, its full potential remains unrealized due to persistent implementation challenges, as reflected in the historic lows of recent years.

Low execution rates not only slow infrastructure and service delivery but also dampen investor confidence, inhibit employment generation, and weaken the addressable impact on living standards. If unaddressed, this weak implementation could transition from being a short-term hiccup to a structural drag on long-term growth and prosperity.

Reforms that streamline procedures, enhance institutional capacity, promote accountability, and foster policy stability will be essential. With such measures, Bangladesh can reinvigorate its development momentum, ensuring that planned investments translate into real progress felt by its people, businesses, and future generations.

Ultimately, implementing the ADP effectively isn’t merely a bureaucratic task, it’s a national imperative for a prosperous Bangladesh.
(The author is Dean
School of Business
Canadian University of Bangladesh)