ADP implementation rate rises slightly, but actual spending shrinks

Spending under Annual Development Programme (ADP) declined in monetary terms during the first eight months of the current fiscal year, even though the overall implementation rate saw a slight uptick.

A total of Tk63,327.53 crore, out of the revised ADP size of Tk208,935.53 crore, was spent under the ADP between July and February of FY26, according to data released yesterday by the Implementation Monitoring and Evaluation Division (IMED). This, however, is Tk4,225.68 crore less than the amount spent during the same period in the previous fiscal year.

During the first eight months of FY25, Tk67,553.21 crore from the ADP allocation was spent.

Infographic: TBS

IMED officials also noted that in the earlier 2023-24 fiscal year, Tk85,602.59 crore had been spent during the first eight months. Compared with that period, ADP spending in the current fiscal year has declined by about Tk22,275 crore.

Despite the lower spending, the implementation rate has increased marginally. 

IMED data shows that ADP implementation stood at 30.31% during July to February of FY26, compared with 29.87% in the same period of FY25.

According to IMED officials, FY25 had not been a normal period for development project implementation. 

They said after the fall of the Awami League government in 2024, administrative instability affected project activities, with several project directors and contractors leaving their positions.

However, the rate was higher in FY24, when 33.65% of the ADP allocation had been implemented in the first eight months.

Project disruptions, reviews

Officials at the Planning Ministry said the change of government in 2024 led to disruptions in project management. Many project directors were unavailable, while some stepped down following allegations of corruption. 

Appointing new project directors also took time during the interim administration.

In addition, numerous projects had to be revised, delaying the resumption of activities. Ministries and divisions also needed additional time to start tender processes following the recently approved government procurement policy.

These factors meant that ADP spending could not keep pace with the targeted allocation.

The new government has also begun reviewing ongoing development projects. Authorities are examining whether projects align with the government's election manifesto and policy priorities.

Officials said the review of around 1,300 ongoing projects is expected to be completed within this month. 

This process may hold back allocations for many projects, raising concerns among officials at the Commission that ADP implementation could slow further in the remaining months of the fiscal year.

However, Mustafa K Mujeri, former director general of the Bangladesh Institute of Development Studies, said it is natural for a new government to reassess the pace and priorities of development projects.

"The projects included in the ADP were taken based on the policy priorities of the previous government. Therefore, it is natural and reasonable for the new government to review them in line with its own development vision and priorities," he noted.

Mujeri said projects that do not match the current situation or the new government's policy goals could be cancelled or revised.

"At the same time, new priority projects – such as canal re-excavation or water management programmes – may also be included in the ADP," he added.

Mujeri further noted that such a review process takes time and it is unlikely that project implementation will accelerate significantly during the remainder of the fiscal year.

"Increasing spending hastily simply to raise the implementation rate would not be justified," he said. "If the new government takes time to review ADP projects thoroughly, removes unnecessary or low-priority ones, and prioritises essential projects, then even if the implementation rate remains temporarily low, it will be a more effective and economically sound decision in the long run."

Spending by funding sources

The IMED report shows that Tk34,219 crore was spent from government funds during the first eight months of the fiscal year, representing 26.73% of the allocation. In the same period of the previous fiscal year, Tk34,858 crore – or 25.82% of the allocation – was spent.

During July-February, spending from foreign loans and grants amounted to Tk24,915 crore, or 34.60% of the allocation. In the same period of the previous fiscal year, Tk27,471 crore – or 33.92% – had been spent.

Spending from the organisations' own funds reached Tk4,194 crore in the first eight months of the current fiscal year, compared with Tk5,224 crore during the same period last year.