IMED data shows that the ADP implementation rate declined to 36.19% this fiscal year

TDS Desk:

The slow pace of development budget spending has not improved. According to data published today (26 April) by the Implementation Monitoring and Evaluation Division (IMED), Tk75,607.24 crore was spent under the Annual Development Programme (ADP) in the first nine months (July-March) of the current fiscal year – Tk7,287 crore less than the same period last year.

IMED officials said last fiscal year did not have a normal environment for ADP implementation. Following the fall of the Awami League government in 2024, administrative instability led to the departure of many project directors and contractors, disrupting implementation. During that period, Tk82,894.08 crore was spent.

They added that in FY2023-24 – considered a normal period – Tk1,07,612.45 crore was spent in the first nine months.

IMED data also shows that the ADP implementation rate declined to 36.19% this fiscal year, compared to 36.65% last year and 42.30% in FY2023-24 (first eight months).

The revised ADP size for the current fiscal year stands at Tk2,08,935.53 crore.

Planning ministry officials said many project directors were unavailable after the change in government, while some stepped down due to corruption allegations. Appointing new directors took time. Additionally, many projects required revision, delaying resumption. Newly approved procurement policies also slowed tender processes, preventing spending targets from being met.

The new government has begun reviewing ongoing projects, aligning them with its election manifesto. Around 1,300 projects are expected to be reviewed within this month, raising concerns that funding for some projects may stall.

Officials from the Planning Commission fear this could further slow ADP implementation in the remaining months.

Dr Mustafa K Mujeri, former Director General of the Bangladesh Institute of Development Studies (Bids), said it is natural for a new government to reassess development priorities. Projects under ADP were designed based on the previous government’s priorities, so reviewing and adjusting them is reasonable. Projects inconsistent with current goals may be revised or cancelled, while new priorities – such as canal re-excavation and water management – may be included. However, this process will take time, making a sharp increase in implementation unlikely this fiscal year.

He added that rushing to increase spending just to boost implementation rates would be unwise. A careful review to prioritise necessary projects would be more effective in the long run, even if short-term implementation remains low.

IMED data shows that Tk42,293 crore (33% of allocation) was spent from government funds in the first nine months, compared to Tk44,376 crore (32.87%) in the same period last year.

Spending from foreign loans and grants stood at Tk28,860 crore (40.08% of allocation), slightly lower than Tk32,411 crore (40.01%) last year.

Additionally, Tk4,454 crore was spent from agencies’ own funds, down from Tk6,107 crore in the same period last year.

Fifteen ministries and divisions received 70.97% of the total ADP allocation, making their performance critical.

Among the top recipients, the Health Services Division had the lowest implementation rate at 21%, followed by the railways ministry at 23.64% and the primary and mass education ministry at 24.99%.

Implementation rates of 30-40% were recorded by the road transport and highways division (31.39%), technical and madrasa education division (33.56%), and housing and public works ministry (35%).

Higher implementation rates were seen in the power and energy sector: energy and mineral resources ministry (53%), agriculture ministry (55%), bridges division (47%), secondary and higher education division (45.56%), shipping ministry (41.28%), water resources ministry (51.72%), power division (42.17%), and local government division (48.66%).