Record-low ADP spending in first five months FY26

Government spending under the Annual Development Programme (ADP) has hit a record low in the first five months (July-November) of the fiscal 2025-26.

TBS Infograph

During the period, ministries and divisions spent Tk28,043.62 crore, according to a report published today by the Implementation Monitoring and Evaluation Division (IMED).

This is the lowest ADP expenditure in the opening five months in recent history, shows IMED's data, which provides ADP spending data going back to FY11. 

ADP spending during July-November of last fiscal year was Tk34,215 crore, even amid political unrest, which had slowed development work. Spending in FY24 and FY23 recorded Tk46,857 crore and Tk47,122 crore respectively.

IMED data shows that only 11.75% of the current fiscal year's ADP allocation was spent till November, down from 12.29% last year and well below 17.06% and 18.41% in the same periods of FY24 and FY23.

The government aims to spend Tk2,38,695.64 crore through the ADP in the current fiscal.

IMED officials said many contractors initiated under the previous government have not returned for political reasons, leaving implementation stalled. Delays in approving the new procurement policy have further postponed the start of several construction projects, impacting overall ADP execution.

They added that all ministries and divisions have been urged to start spending according to plans from the beginning of the new year, they said.

Masrur Reaz, chairman and CEO of Policy Exchange Bangladesh, told The Business Standard that pre-election priorities have restricted policymaking and project execution.

"Post-election, the government should act swiftly to restore high-speed implementation, strengthen revenue collection, and revive overall economic momentum," noted the economist.

He further said, "Government projects are often excessive in number, and poorly selected. This structural weakness has created prolonged stagnation in both public and private investment."

Former planning secretary Md Mamun-Al-Rashid told TBS that ADP implementation is unlikely to improve before the election scheduled for February, with the stagnation particularly affecting employment.

"Development spending generates large-scale job opportunities and has multiplier effects on the economy, but delays in project execution hampered progress," he said.

Spending breakdown

IMED data shows that in the first five months, Tk15,614 crore from the government fund was spent, 10.84% of the allocation, down from Tk19,411 crore (11.76%) in the same period last year. 

Foreign loans and grants contributed Tk10,794 crore, 12.55% of the allocation, below last year's Tk11,407 crore (11.41%). Agencies' own funding accounted for Tk1,639 crore, down from Tk3,396 crore last year.

In the current fiscal year, 15 ministries and divisions have been allocated 74.56% of the ADP, as overall implementation largely depends on these bodies. 

Among the highest-allocated, the Medical Education and Family Welfare Division spent just 1.8%, while the Health Services Division spent 3.92% in the first five months. 

Among top-allocated ministries, the Ministry of Science and Technology achieved the highest implementation at 27.42%, followed by the Ministry of Energy and Mineral Resources at 21%, Local Government 20.10%, Water Resources 20.16%, and Agriculture 17.09%. 

Meanwhile, due to low implementation, the Planning Commission has begun the process of revising and reducing the size of the ADP. Officials have proposed cutting Tk30,000 crore from the original plan – reducing the government fund allocation from Tk1,44,000 crore to Tk1,28,000 crore, and foreign loans and grants from Tk86,000 crore to Tk72,000 crore. 

The revision is expected to be finalised at the upcoming National Economic Council meeting next month.