ADP implementation rises in first quarter YoY, spending down by Tk1,057 crore

The implementation rate of the Annual Development Programme (ADP) in the first quarter (July–September) of the current fiscal year (2025–26) slightly increased compared to the same period last year. Spending during the same period, however, fell by Tk1,057 crore.

According to data published today (19 October) by the Implementation, Monitoring and Evaluation Division (IMED), in the first quarter of FY2025–26, ministries and divisions spent Tk12,158.27 crore, down from Tk13,215.30 crore in FY2024–25. 

In FY2023–24, spending in the same quarter was Tk20,609.55 crore. The government set an ADP expenditure target of Tk2,38,695.64 crore for the current fiscal year.

IMED data show that ADP implementation during the first three months of the current fiscal year stood at 5.09%, compared to 4.75% in the same period of the previous year. Typically, the implementation rate during the first quarter of a fiscal year ranges between 7.5% and 9.5%.

Economists attribute this sluggish pace to complexities in project approval and execution processes, tender delays, a shortage of contractors, and bureaucratic inefficiency.

IMED officials said that during July–August of the last fiscal year, the mass uprising led to the fall of the government, halting almost all development activities. This year, ADP implementation was expected to normalise, but progress remains slow. Ministries and divisions have been urged to start spending early in the fiscal year. However, many contractors left after the previous government's fall and have yet to return, leaving many projects stuck.

According to the Planning Commission, ADP implementation last fiscal year was the lowest in recent years, and the same trend is continuing. The government has prioritised speeding up implementation by December, but with national elections due in February, project activity could slow again from January.

Mustafa K Mujeri, executive director of the Institute for Inclusive Finance and Development (InM), said, "ADP implementation could fall even further this year. With the national election in February, political instability may increase, significantly affecting project execution."

He noted that implementation typically remains slow in the early part of the fiscal year, but this time, the election period and the caretaker government's limited operations are expected to make it even slower. 

"Therefore, there is little realistic prospect of a notable rise in implementation throughout the fiscal year. Political tension and administrative changes are likely to weaken ADP performance, keeping it below recent years' levels," Mujeri said.

To accelerate ADP execution, the Planning Commission's Implementation Division held an inter-ministerial meeting on 24 September and issued several instructions to ministries and divisions. After the meeting, Planning Adviser Wahid Uddin Mahmud told journalists that ministries were directed to resume halted projects by reappointing contractors who left after the government's fall.

He added that delays in tender invitations caused by the new Public Procurement Regulations (PPR) have also slowed spending. Many ministries and divisions are waiting to invite tenders under the updated rules. Once tendering resumes, expenditure is expected to rise.

The new procurement regulations have now been approved, and ministries and divisions have begun inviting tenders for various projects under the new system. Planning Commission officials expect spending to pick up in the coming months.

IMED's report shows that Tk6,307 crore was spent from the government's own fund in the first quarter, 4.38% of the allocation, compared to Tk6,633 crore (4.02%) in the same period last year.

Foreign aid and loans accounted for Tk5,074 crore, or 5.90% of the allocation, compared to Tk5,360 crore (5.36%) a year earlier. Agencies spent Tk777 crore from their own funds in the first quarter.

Among 28 ministries and divisions, 5% reported a decline in implementation compared to the same period last year. The health education and family welfare division, which received the highest allocation, spent nothing in the first three months. The civil aviation and tourism ministry, another top recipient, implemented only 0.65% of its allocation.

Other major ministries performed poorly as well: the health services division implemented 1.13%, the railways ministry 1.90%, and the bridges division 1.76%.

Among the top-funded ministries, the best performance came from the science and technology ministry, which achieved an implementation rate of 18.14%. The energy and mineral resources division implemented 9.75%, the local government division 7.81%, the water resources ministry 7.84%, the agriculture ministry 7%, and the housing and public works ministry 6.63%.