Government spending under the Annual Development Programme (ADP) fell to a nine-year low in July–January of fiscal year 2025-26, with Tk50,556.29 crore disbursed, reflecting a slowdown in project execution, data from the Implementation Monitoring and Evaluation Division showed.
The outlay was Tk9,320.58 crore lower than the Tk59,876.87 crore spent in the same period of fiscal year 2024-25, when government activities were disrupted by student protests, political unrest and administrative instability.
Previously, the lowest July–January spending was recorded in fiscal year 2016-17, when Tk39,973 crore was disbursed.
The implementation rate also weakened. IMED data showed 21.18 per cent of the total ADP allocation had been utilised in the first seven months of fiscal year 2025-26, the lowest among comparable periods in recent years.
The rate stood at 21.52 per cent in fiscal year 2024-25. It was higher in fiscal year 2023-24 and fiscal year 2022-23 at 27.11 per cent and 28.16 per cent respectively.
For fiscal year 2025-26, the government allocated Tk2,38,695.64 crore for the ADP, including funds from autonomous bodies.
Ministries that typically receive large allocations, including the Health Services Division and the Secondary and Higher Education Division, faced notable cuts in the revised ADP, officials said.
IMED officials said weak performance by several key ministries and divisions significantly hampered overall implementation.
Despite being one of the largest recipients of development funds, the health sector again showed slow project execution, which officials said may affect service delivery and broader economic activity.
Among 57 ministries and divisions, five recorded the lowest implementation rates in July–January.
The Health Education and Family Welfare Division posted 2.98 per cent, followed by the Public Security Division at 3.14 per cent, the Security Services Division at 3.79 per cent, the Internal Resources Division at 5.47 per cent and the Health Services Division at 6.59 per cent.
By contrast, the Ministry of Food recorded 145.98 per cent expenditure, followed by IMED at 74.66 per cent, the Cabinet Division at 58.71 per cent, the Ministry of Foreign Affairs at 48.79 per cent and the Ministry of Women and Children Affairs at 45.83 per cent.
Zahid Hussain, former lead economist of the World Bank Dhaka office, said slower disbursement often stems from delays in project approvals, tender processes and fund releases.
“If implementation remains sluggish, it may affect infrastructure delivery and private sector confidence,” he said.
He said ADP spending plays a critical role in stimulating domestic demand, particularly in construction and related sectors.
“Lower public development expenditure can dampen job creation and slow the recovery of investment,” he added.
IMED officials expect spending to accelerate in the remaining months of the fiscal year, although the latest data have raised concerns over project execution and economic growth.
