Tuesday, January 27, 2026
HomeEconomyADP implementation hits eight-year low in first half of FY26

ADP implementation hits eight-year low in first half of FY26

Annual Development Programme (ADP) implementation in Bangladesh was a steep fall during the first half of FY26, with spending hitting its lowest level in eight years during the July-December period.

According to the latest report released by the Implementation Monitoring and Evaluation Division (IMED) of the Planning Ministry, only Tk 418.77 billion was spent on ADP projects in the period .

This represents just 17.54 percent of the total ADP allocation of Tk 2 trillion for the year.

With more than half of the fiscal year already over, the government now faces the challenge of spending over Tk 1.5 trillion in the remaining six months to meet its development targets.

IMED data show that both ADP expenditure and the implementation rate declined compared with the same period of the previous fiscal year. In July–December of FY2024–25, ministries and divisions spent Tk 500.02 billion under the ADP, despite political upheaval, the fall of the government, and widespread administrative instability at the time.

Compared with that period, ADP spending in the first half of the current fiscal year fell by Tk 81.25 billion, highlighting a deeper slowdown in development activities.

A review of historical data indicates that the current performance is the weakest in eight fiscal years. Previously, the lowest first-half ADP expenditure was recorded in FY2016–17, when spending stood at Tk 335.54 billion. In every subsequent year, ADP spending during July–December exceeded the current level.

Meanwhile, the top-allocated 15 ministries or divisions that fetched 74.56 percent ADP money in 2025-26 fiscal year managed to post 20.12 percent average performance during July-December, which was higher than the national average.

Local Government Division, the largest agency in terms of allocated resources, managed 30.65 percent ADP execution rate with the Health Services Division hitting the bottom with only 6.11 percent rate.

In contrast, Water Resources Ministry achieved the highest rate of 31.17 percent while Energy And Mineral Resources Division managed 27.69 percent.

 Economists and policymakers have repeatedly warned that prolonged delays in development project execution could hamper economic growth, infrastructure expansion, and service delivery if the implementation pace does not pick up significantly in the coming months.

Most Popular

Similar News