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Development spending crawls to record low of 6.53pc

Ministries and divisions spent Tk 20,519.64 crore during the period against the total ADP allocation of Tk 3.08 lakh crore for FY27

The government has implemented just 6.53 percent of its Annual Development Programme (ADP) in the first four months (July-October) of the current financial year 2026-27, down from 8.33 percent in the same period last fiscal, marking the lowest rate recorded in Bangladesh’s history for a corresponding period.

According to the latest report of the Implementation Monitoring and Evaluation Division (IMED) published on Sunday, ministries and divisions spent Tk 20,519.64 crore during July-October against the total ADP allocation of Tk 3.08 lakh crore for FY27.

In the corresponding four-month period of FY26, development expenditure stood at Tk 19,878.08 crore, accounting for 8.33 percent of the allocation for that year.

ADP implementation during the first four months of a fiscal year generally exceeds 10 per cent . For instance, the implementation rate stood at 11.54 per cent in FY2023-24 and 12.64 per cent in FY2022-23.

IMED figures show that in first four months of FY27 spending in monetary terms increased by Tk 641.30 crore year-on-year, the implementation rate declined by 1.50 percentage points.

In October alone, the government spent Tk 8,142.11 crore, equivalent to 2.64 percent of the annual allocation. In October last year, expenditure was Tk 7,720.07 crore, or 3.23 percent of the allocation.

The slow implementation of the development budget raises concerns about the pace of project execution, particularly as a substantial portion of the annual allocation remains unspent after the first four months of the fiscal year.

The ministry-wise performance figures reveal wide disparities in ADP implementation. The Local Government Division recorded the highest spending rate among the major ministries and divisions, implementing 20.74 percent of its allocation during July-October.

The Primary and Mass Education Ministry followed with 24.15 percent, while the Secondary and Higher Education Division spent 11.30 percent. The Power Division implemented 10.77 percent of its allocation. Several major sectors recorded relatively weak performance.

The Health Services Division spent only 3.94 percent of its allocation, while the Health Education and Family Welfare Division implemented 2.88 percent.

The Railways Ministry spent 3.13 percent, while the Shipping Ministry’s implementation rate stood at 5.43 percent.