ADP implementation falls to historic low at 67.85% in FY25

The Annual Development Programme (ADP) implementation rate dropped to a record low of 67.85% in the just-concluded 2024-25 fiscal year, according to a latest report from the planning ministry's Implementation Monitoring and Evaluation Division (IMED). 

In contrast, the 2023-24 fiscal year recorded an implementation rate of 80.63%. 

This is the lowest ADP expenditure since at least FY12, the earliest year for which data is available on IMED's website. This poor performance highlights a significant decline in development spending. 

IMED officials also confirmed that no other year has seen such poor performance in ADP execution.  

According to IMED data, a total of Tk1,53,450.83 crore was spent on various development projects during the 2024–25 fiscal year, out of a revised allocation of Tk2,26,164.95 crore, which included government and agency funds.

In comparison, Tk2,05,118 crore was spent in the 2023-24 fiscal year from the allocated ADP budget.

Earlier in March, following the approval of the revised ADP, Planning Adviser Dr Wahiduddin Mahmud had predicted a lower implementation rate for FY2024–25, attributing it to the political transition. 

"The interim government had to re-evaluate many projects, cut down on several, and revise those taken up by the previous administration," he told reporters at the time. "Implementation was further hindered as many project directors and contractors left [after the regime change], affecting continuity and project execution."

Dr Mustafa K Mujeri, executive director of the Institute for Inclusive Finance and Development (InM), said, "The past fiscal year was politically turbulent. There was instability within bureaucratic and development administration as well. Many project directors simply disappeared. On top of that, the government withheld funding for several projects while re-evaluating others."

According to IMED, during the July-June period of the 2024-25 fiscal year, Tk90,899 crore was spent from government funds, which is 67.33% of the total allocation. In contrast, in the previous fiscal year, Tk1,23,338 crore was spent from government funds, accounting for 76.37% of that year's allocation.

Foreign funding utilisation also dropped. Only Tk53,078 crore, 65.53% of the allocation, was spent from foreign sources, down from Tk71,968 crore or 86% in the previous year. 

Key ministries fell behind

In the last fiscal, the government had allocated 74.48% of the total ADP to 15 ministries and divisions. The overall implementation rate of the ADP largely depends on the performance of these key ministries and divisions. However, several among these top recipients recorded alarmingly low implementation rates. 

Among them, the Health Services Division posted one of the lowest implementation rates at just 21.74%.

Other ministries and divisions with substantial allocations and low to moderate implementation rates included – Ministry of Civil Aviation and Tourism 49.23%; Ministry of Primary and Mass Education 58%; Bridges Division 67.82%; Ministry of Science and Technology 70.63%; Roads and Highways Department 73%; and Ministry of Railways 75.74%.

In contrast, a few ministries managed to achieve an implementation rate of over 90%. These included the Ministry of Agriculture, Ministry of Power, Ministry of Water Resources, and the Ministry of Energy and Mineral Resources.