Implementation of the Annual Development Programme (ADP) has fallen to its lowest level in 16 years, reflecting persistent institutional weaknesses, funding constraints and tighter scrutiny of projects during the fiscal year.
According to data released by the Implementation Monitoring and Evaluation Division (IMED) on Thursday, only 48 per cent of the ADP allocation was implemented during the first 11 months (July-May) of FY2025-26.
The government spent Tk 100,769 crore on development projects during the period against a total ADP allocation of Tk 208,935 crore. Both the expenditure and implementation rate represent the weakest performance in the past six fiscal years.
48pc of development allocation utilised in first 11 months
A review of IMED records dating back to FY2010-11 shows this was the lowest July-May implementation rate in 16 years. Historically, ADP implementation during the first 11 months of a fiscal year ranged between 65 and 70 per cent.
A political government led by BNP Chairman Tarique Rahman has assumed office, and Finance Minister Amir Khasru Mahmud Chowdhury is scheduled to place the proposed national budget for FY2026-27 in Parliament on June 11, the first budget of the new administration.
Planning Ministry officials attributed the slowdown to structural inefficiencies, revenue shortfalls and the interim government's review of ongoing projects before releasing funds.
Economists warned that weak implementation of development projects could adversely affect economic growth, employment generation and infrastructure development at a time when Bangladesh is facing multiple economic challenges.
Prof Dr Mustafizur Rahman, distinguished fellow at the Centre for Policy Dialogue (CPD), told the Daily Observer that the low implementation rate reflects longstanding weaknesses in project management.
He said improving implementation capacity, strengthening governance and ensuring greater accountability are essential to achieving development goals.
Efficient utilisation of public resources is more important than merely increasing budgetary allocations, he said, adding that institutional reforms and timely project execution are necessary to avoid cost overruns and delays.
Ministry-wise performance data reveal a poor picture across several agencies.
The Parliamentary Affairs Secretariat recorded zero implementation during the July-May period, spending none of its Tk 20 lakh allocation.
Five other ministries and divisions spent less than 25 per cent of their development allocations. They are the Health Services and Family Welfare Division, Public Security Division, Ministry of Environment, Forest and Climate Change, Ministry of Commerce and Internal Resources Division.
Officials identified limited implementation capacity as a major reason behind the poor performance. Many projects fail to follow approved work plans and timelines, resulting in significant delays.
Land acquisition problems also remain a major obstacle. Contractor inefficiency has further slowed implementation, with some contractors prolonging work to reduce operational costs.
Fiscal constraints have compounded the problem. Revenue collection reportedly fell short by nearly Tk 100,000 crore during the first nine months of the fiscal year, putting pressure on government finances.
Experts also pointed to weaknesses in project planning, saying inadequate feasibility studies frequently lead to design revisions, cost escalation and implementation delays.
Administrative complexities in approval, procurement and tendering procedures, along with procurement-related disputes and repeated tendering, have also slowed project execution.
Weak monitoring and accountability mechanisms further aggravate the situation, allowing implementation challenges to remain unresolved for extended periods.
A senior IMED official, speaking on condition of anonymity, said political unrest and the deterioration of law and order at the beginning of the fiscal year significantly hampered project implementation.
“Similar to the previous fiscal year, development activities faced disruptions at the start of the current fiscal year due to political instability and concerns over the law and order situation,” the official said.
