ADP expenditure drops by Tk6,908cr YoY in first 10 months of FY26

Bangladesh’s development spending remained sluggish in the first 10 months of the current fiscal year, with ministries and divisions failing to utilise even half of the revised Annual Development Programme (ADP) allocation.

According to data released by the Implementation Monitoring and Evaluation Division (IMED) today (23 May), ADP expenditure during the July-April period of FY2025-26 stood at Tk86,516.08 crore, which was Tk6,908.75 crore lower than the corresponding period of the previous fiscal year.

Compared to FY2023-24 – considered by officials as a “normal” fiscal year – expenditure dropped sharply by Tk38,799.6 crore.

The implementation rate during the first 10 months of the current fiscal year reached 41.41%, slightly higher than 41.31% recorded in the same period last fiscal year. However, the rate was significantly higher at 49.26% during the corresponding period of FY2023-24.

Officials said the previous fiscal year was marked by administrative disruptions following the fall of the Awami League government in 2024, which affected project execution. Many project directors and contractors reportedly left their positions, disrupting implementation activities.

During the first 10 months of the previous fiscal year, ADP spending amounted to Tk93,428.83 crore, while expenditure in FY2023-24 during the same period was Tk1,25,315.68 crore.

The government had allocated Tk2,08,935.53 crore in the revised ADP for the current fiscal year, including financing by state-owned organisations.

Planning ministry officials said delays in appointing new project directors, revisions to numerous ongoing projects, and the introduction of a new public procurement policy slowed tender processes in many ministries and divisions.

They added that the government has also begun reviewing ongoing projects to assess whether they align with its election manifesto and policy priorities.

Around 1,300 ongoing projects are currently under scrutiny, with the review process expected to conclude by the end of this month. Planning Commission officials fear that funding for many projects could remain stalled during the review process, potentially slowing ADP implementation further in the remaining months of the fiscal year.