ADP spending drops Tk24,718cr in Jul-Mar

Infographics: TBS

Despite three quarters of the fiscal year having passed, the government is struggling to utilise Annual Development Programme (ADP) funds, with July-March development spending falling by Tk24,718 crore compared to the same period last year.

According to data from the Implementation Monitoring and Evaluation Division (IMED), ADP expenditure stood at Tk82,894 crore during the July-March period – just 36.65% of the revised ADP allocation of Tk2,26,165 crore.

In contrast, during the same period last fiscal year, spending totalled Tk1,07,612 crore, or 42.30% of the revised allocation. This marks the lowest nine-month implementation rate in over a decade, with IMED's website maintaining records dating back to FY2012.

Typically, ADP implementation during the first three quarters ranges between 42% and 45%.

Mustafa K Mujeri, executive director of the Institute for Inclusive Finance and Development, said the sluggish pace was due to instability following the change in government in August last year.

"The situation has not returned to normal, and that has clearly affected the pace of implementation," he told The Business Standard.

He cautioned against rushed expenditure in the final quarter, warning that such practices often lead to waste and corruption. "Quality implementation isn't possible under pressure. Sometimes advance bills are paid to contractors just to show higher spending. That must stop."

IMED officials echoed similar concerns, noting that political uncertainty and administrative reshuffles have disrupted project execution. Since July, numerous project directors have been replaced or accused of irregularities, while many local contractors have yet to resume work. 

Several foreign-funded projects are also facing delays due to the absence of international contractors. Further hampering progress, officials said, is the government's limited release of funds for several projects.

Spending breakdown

Of the total expenditure in the first nine months, Tk44,376 crore came from government funds – only 32.87% of the allocation, down from 36.14% during the same period last year.  

Spending from foreign sources amounted to Tk32,411 crore (40%), compared to Tk44,066 crore (52.77%) last year. Meanwhile, state agencies spent Tk6,107 crore from their own funds in the first eight months.

Fifteen ministries and divisions received 74.48% of the total ADP allocation. However, several of these top recipients posted poor implementation rates. The Health Services Division, for example, utilised just 14.41% of its allocation.  

Sector insiders attribute this in part to delays in approving the Fifth Health, Nutrition and Population Sector Programme (HNPSP), a five-year initiative that was supposed to start last July.

Other underperforming ministries include the Ministry of Shipping (24.83%), the Bridges Division (27%), and the Ministry of Railways (32.71%).

In contrast, some agencies have fared better. The Energy and Mineral Resources Division spent 79.71% of its allocation, while the Power Division reached 56%. The Ministry of Agriculture implemented 54%, and both the Local Government Division and the Ministry of Housing and Public Works reached 45% of their respective ADP targets.