The Annual Development Programme (ADP) implementation rate has remained at a five-year low in the first seven months of the running fiscal during the tenure of the interim government, continuing the trend observed over the past several months, according to the latest progress report.
Data released by the Implementation Monitoring and Evaluation Division (IMED) under the Ministry of Planning shows that the pace of spending and execution has slowed significantly compared to previous years, raising concerns about delays in development activities.
The implementation progress during the July-January period remains subdued. In the first seven months of FY2025-26, total spending reached Tk 50,556.29 crore, representing 21.18 per cent of the annual allocation. During the same period of FY2024-25, implementation stood at Tk 59,876.87 crore or 21.52 per cent.
In FY2023-24, the implementation rate for the July-January period was 27.11 per cent with expenditure amounting to Tk 74,464.19 crore. The rate was 28.16 per cent in FY2022-23 with spending of Tk 72,090.21 crore, while FY2021-22 recorded 30.21 per cent implementation, with Tk 71,532.97 crore spent.
However, For the current fiscal year 2025-26, the total ADP allocation stands at Tk 238695.64 crore. In comparison, allocations in recent years were Tk 278,888.90 crore in 2024-25, Tk 274,874.02 crore in 2023-24, Tk 265,003.27 crore in 2022-23 and Tk 236,793.09 crore in 2021-22.
Officials said the current year's rate is the lowest among the last five years for the corresponding period, indicating a continued slowdown in project execution.
Monthly data also reflects the sluggish pace. In January alone, ADP implementation in FY2025-26 stood at Tk 8,679.42 crore, accounting for just 3.64 per cent of the annual allocation. In January of the previous fiscal year, spending was slightly higher at Tk 9,874.53 crore, or 3.55 per cent of the allocation.
The persistent slowdown has been attributed to multiple factors, including administrative adjustments, cautious expenditure management and slower approval processes during the interim administration period.
Project officials have also pointed to delays in procurement, land acquisition and fund release as key reasons behind the lower execution rate.
As per the economists, the ADP plays a critical role in driving economic activity, employment and infrastructure development.
A sustained slowdown in implementation may affect overall growth momentum, especially in sectors reliant on public investment.
Despite the lower execution rate, planning ministry officials expressed hope that spending would accelerate in the remaining months of the fiscal year as ministries and agencies traditionally speed up project implementation towards the end of the budget cycle.
The ADP is the government's primary development budget, financing major infrastructure, social sector and regional development projects.
A higher implementation rate is generally seen as a sign of strong administrative capacity and efficient project management, while slower spending often signals bottlenecks in execution.
With less than half the fiscal year remaining, the pace of implementation in the coming months will be crucial in determining whether the government can narrow the gap with previous years or whether FY2025-26 will end with the lowest execution rate in recent times.
Source: UNB