New govt moves to accelerate sluggish ADP implementation

The newly formed government has taken steps to accelerate the execution of the Annual Development Programme (ADP) after weak implementation in the first two-thirds of the fiscal year.

Finance and Planning Minister Amir Khosru Mahmud Chowdhury yesterday issued a directive to senior officials to improve the ADP execution rate during his first meeting in office. Frustrated with the slow pace, he instructed officials to find effective and implementable ways to boost the implementation of development projects.

Data from the Implementation Monitoring and Evaluation Division (IMED) shows that by January of the current fiscal year, only about 21.18% of the ADP allocation had been spent. Experts say early execution rates are typically lower but the current level remains insufficient to meet year-end targets.

Officials and development experts have pointed to several factors behind the slow execution. Delays in procurement procedures have slowed the release of funds and the start of projects. Land acquisition issues have also held up major infrastructure work, tying up resources in legal and administrative processes.

Shortages of experienced project directors and technical staff have further contributed to delays, particularly in sectors requiring specialist management. The minister urged authorities to appoint appropriate officials and project directors on an emergency basis to speed up progress. 

Political upheaval and administrative uncertainty in 2024 also affected ADP execution, with many contractors linked to the previous regime reportedly withdrawing from ongoing work. This left gaps that were slow to fill and delayed project implementation.

The interim government reduced the size of the ADP by around Tk30,000 crore in the revised budget, reflecting tighter fiscal conditions that further constrained project spending. Sectors such as health and education were particularly hard hit, with steep cuts in their allocations. 

In the 2024-25 fiscal year, Bangladesh recorded one of its lowest ADP execution rates, with 67.85% of the revised programme executed by June – a significant drop from 80.63% the year before. Analysts link this decline to political disruption and policy reassessments that slowed development work.