HomeEconomyGovt plans major ADP overhaul, 210 projects face axe

Govt plans major ADP overhaul, 210 projects face axe

The government is set to overhaul 436 projects and cut 210 from the current fiscal year’s Annual Development Programme (ADP) as part of its efforts to rein in wasteful development spending and redirect resources towards priority areas.

A project review committee has identified 159 ongoing and 247 newly approved projects for rescoping and repurposing, which will eventually trim 210 projects from ADP, including 25 ongoing and 185 new projects. A further 270 projects are likely to be completed by June 2027.

The FY2026-27 ADP contains 2,372 projects, including 1,107 ongoing and 1,265 newly approved projects. Of these, 203 were scheduled for completion by June 2027.

The restructuring decision came at an ADP rescoping and repurposing meeting held at the Planning Commission on October 31, with Finance and Planning Adviser Rashed Al Mahmud Titumir in the chair.     

The meeting decided that ongoing and new projects must be grouped under specific programmes. Ministries had already been instructed to arrange them in clusters, in line with the government’s election manifesto and development plan.

The move aims to bring development projects in line with the government’s election manifesto, improve implementation efficiency and ensure better use of public funds.

The 15 ministries and divisions with the highest ADP allocations were asked to present revised implementation and spending plans at the next meeting.

Emphasising the importance of effective project implementation, Titumir said the pace of ADP execution was directly linked to the country’s overall development.

“The pace of ADP implementation determines the country’s development momentum, infrastructure development, employment growth and the achievement of desired growth in the social and economic sectors. It is not merely a plan; it is an integrated roadmap for achieving national progress,” he said, according to the meeting minutes.

He called on all concerned ministries and divisions to work collectively to ensure effective implementation of the current fiscal year’s development programme.

Ministries asked to prioritise projects, revise ADP spending plans

The meeting asked ministries to accelerate ongoing development projects, remove implementation bottlenecks and ensure that public spending delivers measurable economic and social benefits.

The top allocated 15 ministries will have to present progress reports on government-funded and foreign-aided projects at the next meeting, identifying implementation hurdles and outlining plans to overcome them.

They will also be required to submit details of their manifesto-linked flagship projects and specific work plans for implementing the revised ADP for FY2026-27.

The meeting stressed the need for realistic expenditure projections, directing ministries and divisions to assess the actual financial requirements of individual projects before finalising their revised allocations.

It also called for a review of ongoing and new projects to identify those requiring rescoping or repurposing. Such changes will be made on a cluster-wise basis under a defined framework, rather than allowing projects to continue without reassessing their relevance and requirements.

Ministries were further instructed to ensure proper utilisation of development allocations and rationalise operating expenditure to support the government’s economic growth target.

Sector-wise review identifies scope for cuts

The review found considerable scope for project rationalisation across several sectors.

The Agriculture, Water Resources and Rural Institutions Division reported that 220 of its 630 projects had undergone rescoping and repurposing. Another 91 projects are scheduled for completion by June 2027, while the exercise could reduce its project portfolio by 55.

The Physical Infrastructure Division also reported significant progress in reviewing its development portfolio. Of its 939 projects under the FY2026-27 ADP, 110 have undergone rescoping and repurposing.

This division’s 19 projects are scheduled for completion by June 2027, while the exercise is expected to reduce the division’s project portfolio by 63, according to the meeting minutes.

The Socio-Economic Infrastructure Division reported that 180 of its 654 projects had undergone the exercise. Sixty-nine projects are scheduled for completion by June 2027, while 66 projects could be reduced.

The Industry and Power Division has also undertaken rescoping and repurposing of 26 projects out of its total 230. Twenty-three projects are scheduled to end by June 2027, while the review could lead to a reduction of 26 projects.

The discussion also raised a warning about delivery. The Socio-Economic Infrastructure Division’s member said progress on projects under several of its ministries is unsatisfactory.

Disputes with contractors and other stakeholders have held up some of them, he said, adding that if they are not resolved, the ADP’s targets could be at risk.

The meeting also noted implementation delays in some sectors, warning that unresolved project bottlenecks could undermine the achievement of annual development targets.

Focus shifts to quality of spending

The meeting placed emphasis on improving the quality of development expenditure rather than simply increasing allocations.

Finance secretary Md Khairuzzaman Mozumder told the meeting that the likely spending must be fixed for the revised ADP, which will decide each ministry’s final allocation. He urged ministries to spend more on development and less on operating costs to help reach the growth target.

It directed secretaries and senior secretaries of the concerned ministries and divisions, along with members of the Planning Commission, to implement the decisions.

The government expects the review to help prioritise projects with stronger development impacts, improve ADP implementation and reduce unnecessary spending in the revised development programme.

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