Bangladesh’s public development spending recorded its weakest performance in five years in the first nine months of the current fiscal year, pointing to slower project rollout and muted economic activity.
Data from the Implementation Monitoring and Evaluation Division (IMED), released on Sunday, showed that spending under the Annual Development Programme (ADP) reached Tk75,607 crore in July–March, with an execution rate of 36.19 per cent.
Both the volume of spending and the implementation rate are the lowest over the past five fiscal years.
The outlay was around Tk7,000 crore lower than the same period last year. In contrast, spending during the first nine months averaged close to Tk1,00,000 crore in the preceding three fiscal years.
The total ADP size for the current fiscal year stands at Tk2,08,935 crore.
Officials said the slowdown in project execution is weighing on employment generation and limiting the flow of funds into the economy.
They attributed the weak performance to funding shortages, stricter project scrutiny under the interim administration, and persistent structural inefficiencies in implementation.
Performance across ministries and divisions remained uneven, with at least 15 failing to utilise even a quarter of their allocations in the nine-month period.
The Parliamentary Affairs Secretariat did not spend any portion of its Tk20 lakh allocation.
Other lagging entities include Primary and Mass Education Ministry, Railways Ministry, Health Services Division, Prime Minister’s Office, Health Education and Family Welfare Division, Public Security Division, Environment, Forest and Climate Change Ministry, Posts and Telecommunications Division, Youth and Sports Ministry, Commerce Ministry, Financial Institutions Division, Internal Resources Division, Election Commission Secretariat, and Statistics and Informatics Division.
Officials and analysts pointed to several underlying factors.
They said project execution often suffers from weak planning and limited institutional capacity, while contractors tend to delay work to manage costs.
Lengthy land acquisition processes, legal complications, and bureaucratic delays in approvals further slow progress.
A revenue shortfall of nearly Tk1,00,000 crore during the period has also constrained funding, with the government prioritising essential expenditures such as salaries and debt servicing over development projects.
Inadequate feasibility assessments at the planning stage frequently lead to design revisions, cost escalation, and delays during implementation.
Procurement complexities, including tender disputes and repeated bidding processes, add further delays, while weak monitoring allows issues to persist unresolved.
Changes in policy direction and ongoing project reviews following the political transition have also slowed fund disbursement and execution.
Analysts said inefficiencies, governance gaps, and instances of misuse continue to undermine project quality and timelines, often requiring repeated revisions and extensions.
