Political transition, project review drag FY26 ADP implementation to record low of 67.52%
According to IMED data, the revised ADP allocation for FY26 stood at Tk208,935.53 crore. Of that, only Tk141,071.80 crore was spent.
Bangladesh recorded its lowest implementation rate of the Annual Development Programme in FY26, with only 67.52% of the revised allocation being utilised as political transition, administrative disruptions and a government-wide review of ongoing projects slowed public spending.
The implementation rate was even lower than the 68.18% achieved in FY25 under the interim government, according to the FY26 ADP implementation report released today (30 July) by the Implementation Monitoring and Evaluation Division (IMED).
IMED officials said ADP implementation had consistently remained above 80% in previous fiscal years before dropping below that threshold over the past two years.
Officials attributed the prolonged slowdown to the political and administrative upheaval following the fall of the Awami League government in 2024. The resulting instability disrupted project execution as many project directors and contractors left their positions, affecting implementation in FY25. Those challenges persisted into FY26.
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The officials also said government activities during the February national election were largely election-focused, causing development work to lose momentum for several months.
Following the formation of the new government, authorities initiated a comprehensive review of ongoing development projects to assess whether they aligned with the government's election manifesto and development priorities.
Nearly 1,300 ongoing projects are currently under scrutiny, delaying implementation of many schemes and contributing to the historically low ADP execution rate.
The slowdown was also reflected in development expenditure.
According to IMED data, the revised ADP allocation for FY26 stood at Tk208,935.53 crore. Of that, only Tk141,071.80 crore was spent.
Total expenditure declined by Tk13,118 crore compared to FY25 and was Tk64,046.58 crore lower than in FY24.
Transition, economic pressures behind slowdown
Dr Mustafa K Mujeri, former director general of the Bangladesh Institute of Development Studies, said the decline in spending and slower implementation of development projects should be viewed in the broader context of the fiscal year's political and economic developments.
"A significant change in governance took place during the year. The interim government remained in office for a considerable period before a newly elected government assumed power. Such transitions naturally slow administrative processes, policymaking and decision-making, as time is required to form a new cabinet, assign responsibilities and restore the full pace of government operations," he said.
Mujeri added that the fiscal year was also marked by an unusually challenging global and domestic economic environment.
Looking ahead, he said the government's immediate challenge would be to restore implementation momentum, strengthen execution capacity and accelerate ADP projects to support economic recovery.
"The faster public spending resumes, the quicker the economy will recover and growth will gain momentum," he added.
Government fund utilisation falls
The IMED report shows that Tk84,210 crore was spent from the government's own funds in FY26, representing 65.79% of the allocation. In FY25, government-funded spending stood at Tk91,529.80 crore, or 67.80% of the allocation.
Expenditure from foreign loans and grants reached Tk49,827 crore, equivalent to 69.20% of the allocation, compared with Tk53,280 crore, or 65.78%, a year earlier.
Meanwhile, spending from the organisations' own funds dropped sharply to Tk1,035 crore from Tk9,381 crore in FY25.
Top-performing, lagging ministries
The 15 ministries and divisions receiving the largest ADP allocations accounted for 74.13% of the revised programme.
Among them, the Energy and Mineral Resources Division recorded the highest implementation rate, utilising 93.73% of its allocation.
The Ministry of Water Resources followed with 88.77%, while the Power Division, the Ministry of Agriculture, and the Ministry of Civil Aviation and Tourism each implemented more than 87% of their allocated budgets.
The Local Government Division, which received the largest allocation of Tk38,776 crore, spent 82.04% of its budget. The Ministry of Science and Technology also performed relatively well with an implementation rate of 82.61%.
The Road Transport and Highways Division, despite receiving the second-largest allocation, utilised 71.18% of its budget. The Bridges Division recorded 73.81% implementation, while the Ministry of Railways achieved 74.21%.
Education-related ministries ranked among the weakest performers.
The Technical and Madrasa Education Division posted the lowest implementation rate, spending only 50.33% of its allocation. The Ministry of Primary and Mass Education utilised 60.87%, while the Secondary and Higher Education Division implemented 66.30% of its budget.
