Govt spends only 11.7% of ADP fund in five months

• ADP spending hits weakest level in years
• Foreign-funded project utilisation slows significantly
• Health sector records particularly poor progress
• Science ministry leads with stronger execution

The government has spent only 11.75 percent of its Annual Development Programme (ADP) allocation in the first five months of the current fiscal year, marking the weakest implementation performance in at least 15 years.

According to data released by the Implementation Monitoring and Evaluation Division (IMED) on Monday, ADP expenditure reached Tk 28,043 crore during July-November of fiscal year 2025-26 (FY26), out of a total fund of Tk 2,38,695 crore, the lowest allocation in four years.

The pace of spending has slowed sharply compared with previous years. Officials say the low implementation is owed to political uncertainty, reduced development projects, and austerity measures.

During the same period of FY25, ADP expenditure reached Tk 34,215 crore, despite widespread political unrest that had disrupted development activities.

Spending was even higher in earlier years, amounting to Tk 46,857 crore in FY24 and Tk 47,122 crore in FY23. Notably, even during the July-November period of FY21, when economic activities were largely suspended due to the Covid-19 pandemic, the ADP implementation rate was higher at 17.93 percent.

IMED data also indicate a significant slowdown in the utilisation of foreign-funded development resources.

Expenditure from foreign sources fell to Tk 10,794 crore in the first five months of FY26, representing only 36 percent of the foreign-funded portion of the ADP. In the corresponding period of FY25, foreign-funded ADP spending stood at Tk 11,407 crore, or 11.41 percent of the allocation.

THE TOP SPENDERS AND LOW SPENDERS

Implementation performance varied widely across ministries and divisions. Despite receiving substantial allocations, the health sector showed particularly weak progress.

The Medical Education and Family Welfare Division utilised only 1.8 percent of its allocation, while the Health Services Division spent just 3.92 percent during the period.

By contrast, several other ministries recorded comparatively stronger execution.

The Ministry of Science and Technology led with an implementation rate of 27.42 percent, followed by the Ministry of Energy and Mineral Resources at 21 percent and the Local Government Division at 20.10 percent.

Planning ministry officials attributed the overall slowdown to austerity measures and the lingering effects of political uncertainty following the events of August 5 last year, which disrupted project implementation.

They said the interim government has delayed or postponed a number of projects initiated by the previous administration due to budgetary constraints.

Officials also noted that several contractors involved in development projects left the country after the political transition, abandoning work midway and further slowing implementation.

On December 1, Planning Adviser Wahiduddin Mahmud voiced frustration over the situation, saying, "We are not speeding up the ADP execution rate."

He pointed out that many government officials are now reluctant to serve as project directors, while contractors have become less interested in participating in development projects following reforms to public procurement rules.

According to Mahmud, the interim government's reforms have made procurement more transparent by dismantling monopolistic practices and requiring contractors to disclose full business and tax information.

"We could not speed up project implementation as nobody wants to become a project director now, and contractors are also less enthusiastic," he said.