ADP spending by 10 ministries, divisions was zero in July

Ten ministries and divisions failed to spend a single penny on development projects in the first month of the current fiscal year, according to government data.

The agencies that made no progress include the Health Services Division, Medical Education and Family Welfare Division, Bridges Division, the Ministry of Industries, Internal Resources Division, the Ministry of Commerce, and the Ministry of Civil Aviation and Tourism.

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According to data released yesterday by the Implementation Monitoring and Evaluation Division (IMED), ministries and divisions spent only Tk 2,121 crore from the Annual Development Programme (ADP) in July, just 0.69 percent of the Tk 3.08 lakh crore allocation for fiscal year 2026-27.

The spending pace was similar in July last fiscal year, which eventually dragged overall ADP implementation down to 67.52 percent, the lowest in 50 years.

The sluggish start comes despite expectations that development spending would accelerate following the formation of the new political government earlier this year.

Mohammad Lutfor Rahman, an economics professor at Jahangirnagar University, said the slow pace was unexpected given public expectations from the new government.

“What we, as economists, as well as ordinary people, had been expecting, was that after a prolonged period of political change and the stagnation we experienced during the interim government's tenure, government spending would increase once the journey of a new democratic government began,” he said.

“There was a public expectation that government spending would rise because when such spending increases, it boosts demand for day labourers and daily wage workers.”

The latest IMED figures raise questions about whether bureaucratic hurdles are still delaying project implementation, Lutfor said.

“It raises the question: Are we still stuck in bureaucratic complications? Has the current government been unable to make the administrative machinery more dynamic? That is certainly a question.”

However, he said the slow spending could also reflect a deliberate effort to scrutinise projects before releasing funds.

“I don't want to look at this entirely negatively. There may be a concern within the government itself. There may be instructions from within the government that this year's expenditures should be made after greater scrutiny, that various projects should be reviewed again and then implemented gradually.”

Lutfor also pointed to the large fiscal deficit as a possible reason for the cautious approach.

“I suspect that the government itself may not have the willingness to spend the entire amount. Ultimately, if the government spends, it has to arrange the money from somewhere. That would have to come through borrowing, either domestic or foreign,” he said.

“So, perhaps the government is moving in a somewhat conservative manner.”

He said the government should accelerate spending, particularly on infrastructure. Citing the poor condition of many rural roads, he said inadequate maintenance increases vehicle damage and depreciation costs.

“Proper maintenance and development of infrastructure can generate broader economic benefits, while at the same time creating employment opportunities for people who work on a daily-wage basis,” Lutfor said.

He urged the government to speed up implementation and strengthen oversight.

“In particular, the government could form a high-level monitoring committee to examine which ministries are lagging behind and why they are lagging behind,” he suggested.

“This needs to be investigated. Because, for any country, the health and education sectors are among the most important sectors.”

A senior IMED official, speaking on condition of anonymity, said fund disbursement is usually slow in the first month of the fiscal year. This, and some other factors, result in sluggish ADP spending.

The official added that IMED would soon notify ministries and divisions that have either spent little or have yet to begin ADP implementation.