Slow project execution drags down ADP spending

The pace of development budget utilisation remains subdued, with little sign of improvement in the current fiscal year.

According to data released on Sunday by the Implementation Monitoring and Evaluation Division (IMED), expenditure under the Annual Development Programme (ADP) reached Tk75,607.24 crore during the first nine months (July–March) of the fiscal year.

This is Tk7,287 crore lower than spending in the same period last year.

IMED officials noted that the previous fiscal year was marked by an abnormal implementation environment. Following the fall of the Awami League government in 2024, administrative disruption led to the departure of numerous project directors and contractors, hampering progress. Despite this, ADP spending during that period stood at Tk82,894.08 crore.

They added that in FY2023–24 — regarded as a relatively stable period — expenditure reached Tk1,07,612.45 crore in the first nine months.

The latest data further shows that the ADP implementation rate has declined to 36.19 per cent this fiscal year, compared with 36.65 per cent a year earlier and 42.30 per cent in FY2023–24 (for the first eight months).

The revised ADP outlay for the current fiscal year is Tk2,08,935.53 crore.

Officials at the Planning Ministry attributed the slowdown to several factors.

Many project directors were unavailable following the change in government, while others stepped down amid corruption allegations, delaying new appointments. In addition, a number of projects required revisions before work could resume.

Recently introduced procurement policies also contributed to slower tender processes, further constraining expenditure.

The new administration has initiated a review of ongoing projects to align them with its election manifesto. Around 1,300 projects are expected to undergo review within the month, raising concerns that funding for some initiatives could be delayed.

Officials at the Planning Commission warned that this process may further affect implementation in the remaining months of the fiscal year.

Breakdowns of spending show that Tk42,293 crore — 33 per cent of the allocation — was financed from government funds during the first nine months, compared with Tk44,376 crore (32.87 per cent) in the same period last year.

Expenditure from foreign loans and grants totalled Tk28,860 crore (40.08 per cent of allocation), slightly below Tk32,411 crore (40.01 per cent) a year earlier. Meanwhile, spending from agencies’ own funds fell to Tk4,454 crore, down from Tk6,107 crore in the corresponding period.

Fifteen ministries and divisions account for 70.97 per cent of the total ADP allocation, making their implementation performance particularly significant.

Among the major recipients, the Health Services Division recorded the lowest implementation rate at 21 per cent, followed by the railways ministry at 23.64 per cent and the primary and mass education ministry at 24.99 per cent.

Implementation rates in the 30–40 per cent range were reported by the road transport and highways division (31.39 per cent), technical and madrasa education division (33.56 per cent), and the housing and public works ministry (35 per cent).

Higher rates were observed in several sectors, including the energy and mineral resources ministry (53 per cent), agriculture ministry (55 per cent), bridges division (47 per cent), secondary and higher education division (45.56 per cent), shipping ministry (41.28 per cent), water resources ministry (51.72 per cent), power division (42.17 per cent), and the local government division (48.66 per cent).