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FY26 ADP spending hits record low to 67.52pc

The implementation rate of Annual Development Programme (ADP) against the annual allocation stood at 67.5 percent in the just-concluded financial year of 2025-26 marking the lowest level for the corresponding period in the recent past.

According to the Implementation Monitoring and Evaluation Division (IMED) latest data published on Thursday, in FY26 ministries and agencies spent Tk 141,071 crore against a revised allocation of Tk 208,935 crore.

The spending rate was much lower than 68.18 per cent recorded in FY25, 80.63 per cent in FY24, 85.17 per cent in FY23 and 92.74 per cent in FY22, making FY26 the weakest performance in the past five years. IMED annual data showed, ADP implementation had exceeded 80 percent in previous fiscal years, but the rate has dropped below that threshold over the past two years.

Experts have attributed this slowdown to the review of ongoing and newly proposed projects, coupled with a reduction in fund disbursements.

Following the Awami League’s removal from power, the interim government prioritised project implementation based on necessity.

Correspondingly, the recent implementation slowdown reflects a combination of factors, including insufficient project readiness at the approval stage, delays in procurement and land acquisition, weak coordination between executing and implementing agencies, cost revisions and design changes, and cash-planning.

Furthermore, as ministries and divisions remained preoccupied with election-related activities the ADP implementation also lost its focus during Q3 of FY26.

The total implementation during FY25 was Tk 154,189.83 crore, while expenditure reached Tk 205,118.38 crore in FY24, Tk 201,486.78 crore in FY23 and Tk 203,648.49 crore in FY22.

However, the spending in June 2026, the final month of the fiscal year, spending amounted to Tk 40,308.12 crore, and accounting for 19.29 per cent of the revised ADP allocation, showed the latest IMED data.In comparison, ministries and divisions spent Tk 43,318.10 crore in June 2025, representing 19.09 per cent of the revised ADP allocation for that fiscal year.

IMED data also showed that 12 ministries and divisions receiving the largest allocations failed to spend even half of their allocations in last fiscal.

The Health Services Division recorded one of the lowest implementation rate at 31.15 percent during the period, the Secondary and Higher Education Division spent 50.33 percent of the allocation, according to data released yesterday.

The bottom performers are including Economic Relations Division (13.97 percent), the Internal Resources Division (17.42 percent),and the Election Commission Secretariat (29.90 percent).

Additionally, 15 ministries and divisions were allocated 78.65 per cent of the funds for the last fiscal year.

The Local Government Division, Power Division, Ministry of Water Resources Energy and Mineral Resources Division are among leading in ADP implementation, with utilization rates of 82.04 per cent, 83.73 per cent, 88.77 per cent and 93.73 percent respectively.

Meanwhile, the annual development programme (ADP) alocation for the 2026-27 fiscal year, setting the tota lat Tk 3 lakh crore, 30 percent higher than the previous fiscal year’s ADP.

Of the total, Tk 1.90 lakh crore will come from government financing, while Tk 1.10 lakh crore will be sourced from project loans and grants.

Again in FY27, the Local Government Division, Road Transport and Highways Division, Health Services Division, and Secondary and Higher Education Division received the highest allocations.