ADP implementation falls to record low 1.85% in first two months of FY27

Infographics: TBS

The government spent just 1.85% of its Annual Development Programme (ADP) allocation in July-August, the lowest implementation rate recorded to date, as development spending remained sluggish at the start of FY27.

The rate was down from 2.39% in the same period of FY26, according to updated data released by the Implementation Monitoring and Evaluation Division (IMED) today (21 September).

According to IMED data, Tk5,709.70 crore was spent from the ADP allocation in the first two months of the current fiscal year, compared with Tk5,714.83 crore during the same period last fiscal year.

The FY27 ADP has an overall allocation of Tk3,08,924.86 crore, including funds provided by government agencies from their own sources.

Planning Commission and IMED officials said spending is typically low at the start of the fiscal year as ministries and divisions prepare work plans, but is expected to rise gradually as implementation progresses.

Md Sayduzzaman, former chief of the Planning Commission and a public investment management expert, said the change of government had also contributed to the slowdown.

"After a new government comes to power, it naturally takes some time to set its own priorities, reorganise plans and make decisions," he said, adding that ministries also need time to invite tenders, secure approvals and complete other preparations for new projects.

To speed up implementation, Sayduzzaman called for faster decision-making, quicker project approvals and tendering, stronger monitoring and more effective ADP review meetings to resolve implementation problems.

Mustafa K Mujeri, former director general of the Bangladesh Institute of Development Studies (BIDS), said the decline in the implementation rate was certainly a matter of concern, although some slowdown at the beginning of a new government was normal.

Mujeri said the government should prioritise projects and address administrative and institutional bottlenecks to shorten the time between approval and implementation. 

He further said the implementation rate could rise in the coming months once the initial obstacles were addressed.

Planning Commission and IMED officials, however, said efforts to improve ADP implementation had been stepped up, with the planning minister, state minister and senior officials meeting ministries and divisions to accelerate projects and ensure quality spending.

They said implementation bottlenecks were also being addressed promptly to prevent delays.

According to IMED data, Tk4,049 crore, or 2.13% of the Tk1,90,000 crore government-funded allocation, was spent in July-August, compared with 1.91% a year earlier.

Spending from foreign loans and grants was Tk1,338 crore, or 1.22% of the Tk1,10,000 crore allocation, sharply below the 2.91% recorded in the same period last year. Agencies spent Tk323 crore, or 3.62%, from their own funds.

Of the 57 ministries and divisions covered by IMED, 17 spent less than 1% of their allocations, while five spent nothing at all.

The Bridges Division and the Ministry of Civil Aviation and Tourism were among those with zero spending despite having relatively large allocations.

Among the ministries and divisions that spent less than 1% were the Ministry of Shipping, Posts and Telecommunications Division, Rural Development and Co-operatives Division, Ministry of Commerce, Ministry of Railways, and Ministry of Environment, Forest and Climate Change.