ADP implementation falls below 1%, not a good sign: Planning adviser

Planning Adviser Wahiduddin Mahmud today (17 August) voiced disappointment over the very low implementation rate of the annual development programme (ADP) as it has fallen below 1%.

"This is lower than the previous year; this is not a good sign," he said while briefing reporters after the weekly Ecnec meeting.

He mentioned that the ADP implementation rate in the last fiscal was lower than the target level for various acceptable reasons. "This year, it was supposed to be accelerated; the excuses of last year cannot be acceptable this year."

Wahiduddin mentioned that contractors and project directors, who are usually government officials, have been transferred, either following their desires or for other reasons. "New contractors are yet to be appointed. So, I assume that many projects are yet to get momentum," he pointed out.

But, he said, his expectation about the ADP implementation was the normal one, or quicker this year. "We lowered the size of the ADP deliberately to make it realistic from the aspect of its size, so our target is to implement it properly," he said.

He mentioned that his ministry would issue directives to all other ministries to expedite their projects. "There will be no room for excuses as projects must continue at their usual pace," he said.

The planning adviser said that generally, the government revises the ADP during the March-April period, but this year it will be done by December-January. "At that time, to achieve the target, ministries and divisions concerned used to try to implement projects hurriedly during the remaining last two months of the fiscal."

As the next election is going to be held in February, he said, "We will do that in December-January, but for that we will need the total framework of the budget."

The ADP implementation rate fell to a record low of 67.85% in the just-concluded fiscal year 2024-25, the lowest in at least two decades, according to data from the planning ministry's Implementation, Monitoring and Evaluation Division (IMED).

Out of a revised ADP allocation of Tk226,165 crore, including both government and agency funds, only Tk153,450 crore was spent on various development projects during the fiscal year ending June 2025, a steep drop from the 80.63% implementation rate recorded in 2023-24.

This historically low rate surpasses even the downturn seen during the Covid-19 pandemic, marking the worst performance since data tracking began in FY2004-05, as several key sectors lagged significantly behind.

The Health Services Division implemented just around 21–22% of its allocation, while the Health, Education and Family Welfare Division, among others, registered similarly poor outcomes. On the other hand, sectors such as power, agriculture, and energy performed notably better.

Experts and officials attribute the underperformance to political turmoil and administrative disruptions following mass protests in July-August 2024.

The interim government undertook austerity measures, trimmed ADP size by approximately Tk490 billion and restructured many development projects. Project directors and contractors were absent following regime changes, further hampering execution.

With development spending at these critically low levels, economists warn of adverse effects on economic recovery and public service delivery, particularly in the health and education sectors, where performance was notably weak.