ADP implementation edges up in first 4 months, spending falls Tk2,100cr
FY26 ADP set at Tk238,695.64cr; Tk30,000cr cut expected in revision soon
The Annual Development Programme (ADP), the government's yearly plan for public sector projects, saw a slight rise in implementation during the first four months (July-October) of FY26 compared to the same period last year. However, spending fell by around Tk2,100 crore.
Data released today (20 November) by the Implementation Monitoring and Evaluation Division (IMED) shows that the implementation rate is 8.33%, up from 7.90% in the same period last year. In four months, government ministries and divisions spent Tk19,987 crore, down from Tk21,978 crore during the same period last year.
The government's ADP target for the current fiscal year is Tk238,695.64 crore.
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The pace of ADP implementation remains somewhat slow, as the rate is typically expected to be around 12% in the first four months, IMED data indicates. In FY24, ministries and divisions spent Tk31,692 crore during the same period.
IMED officials said the slowdown is caused by project approval and implementation complexities, tender delays, the absence of contractors, and bureaucratic inertia following the 2024 change of government.
They said that in July-August last year, the country experienced student unrest and a change of government, effectively halting development activities. This year, a normal ADP implementation pace was expected, but progress has yet to pick up.
All ministries and divisions have been urged to spend according to their plans from the start of the year. However, projects where contractors left after the previous government's fall have mostly not resumed due to political reasons, causing delays in implementation, officials said.
According to the Planning Commission, last fiscal year (FY25) saw the lowest ADP implementation rate, and the same trend is evident at the start of this year. The government is placing special focus on ADP implementation through December.
However, experts said that with the national elections scheduled for February 2026, project execution may slow further from January.
Mustafa K Mujeri, executive director of the Institute for Inclusive Finance and Development (InM), told TBS that the election could increase political instability, significantly affecting implementation activities.
"Experience shows that the implementation rate is generally sluggish in the first part of the fiscal year. The rate will slow down further this year due to the election and the interim government's limited activities," he said.
Development projects will lose momentum before and during the election, and even after the new government assumes office, it will take time to prepare its own work plan, Mujeri added.
Breakdown of spending by source
According to IMED data, in the first four months of FY26, Tk10,810 crore was spent from government funds, representing 7.51% of the allocation. During the same period last fiscal year, Tk11,798 crore was spent (7.15%).
From July to October, spending from foreign loans and grants amounted to Tk7,882 crore, or 9.16% of the allocation, compared to Tk8,210 crore (8.21%) in the same period last year.
Additionally, Tk1,187 crore was spent from the agencies' own funds in the first four months of the current fiscal year.
Science, energy, and infrastructure lead early ADP spending
Fifteen ministries and divisions have been allocated 74% of the total budget this fiscal year. The implementation of ADP largely depends on these ministries and divisions.
Among the top-allocated ministries and divisions, the Health Services Division achieved an implementation rate of 1.13% over four months, while the Medical Education and Family Welfare Division recorded 1.61%. The Ministry of Railways spent only 4.92% of its allocation. Other rates include: Road Transport and Highways Division – 5.13%, Ministry of Primary and Mass Education – 5.43%, Secondary and Higher Education Division – 7.41%, Ministry of Shipping – 7.84%, and the Power Division – 8.13%.
Among the highest-allocated ministries and divisions, the Ministry of Science and Technology achieved the highest ADP implementation at 22.85%, followed by the Ministry of Energy and Mineral Resources at 16%. Other notable performances include: Bridges Division – 14.57%, Local Government Division – 13.85%, Ministry of Water Resources – 13.55%, and Ministry of Agriculture – 11.40%.
Revised ADP to See Tk30,000cr Reduction
Amid slow ADP implementation and the upcoming national elections, the Planning Commission has fast-tracked revisions to this year's ADP.
Officials say the Finance Division has already sent a letter to the Planning Commission setting the size of the revised ADP. It proposes a cut of Tk30,000 crore from government funds and foreign loans combined.
Government fund allocation would be reduced to Tk1,28,000 crore from the original Tk1,44,000 crore, while the foreign loan and grant portion would drop from Tk86,000 crore to Tk72,000 crore.
Planning Commission officials said that the revised ADP for the current fiscal year could be finalised at next month's meeting of the National Economic Council (NEC).
