ADP spending falls Tk6,908cr in FY26

Bangladesh’s development expenditure remained slow in the first 10 months of the current fiscal year, with ministries and divisions failing to spend even half of the revised Annual Development Programme allocation.

According to data from the Implementation Monitoring and Evaluation Division, ADP spending during the July-April period of FY2025-26 stood at Tk86,516.08 crore.

The amount is Tk6,908.75 crore lower than the Tk93,428.83 crore spent during the same period of the previous fiscal year.

Compared with FY2023-24, which officials described as a normal year for project implementation, spending fell by Tk38,799.6 crore. ADP expenditure in the first 10 months of FY2023-24 was Tk1,25,315.68 crore.

The implementation rate during July-April of the current fiscal year stood at 41.41 percent. It was slightly higher than 41.31 percent recorded in the same period of FY2024-25, but much lower than 49.26 percent in FY2023-24.

The government has set the revised ADP allocation for FY2025-26 at Tk2,08,935.53 crore, including funds from state-owned enterprises. Planning Ministry officials said project implementation has been affected by delays in appointing project directors, revisions of ongoing projects and changes in public procurement procedures.

They said administrative disruptions following the 2024 political transition also slowed project execution in the previous fiscal year, as several project directors and contractors left their posts.

Officials added that around 1,300 ongoing projects are now under review to assess whether they are aligned with government priorities and election commitments.

They fear the review process may further delay fund release and slow ADP implementation in the remaining months of the fiscal year.

Analysts say lower development spending could affect infrastructure progress, employment generation and public service delivery if implementation does not accelerate in the final quarter.