Bangladesh’s public development spending has slowed to its weakest pace in at least 16 years, raising fresh concerns over the government’s ability to execute infrastructure and social-sector projects amid mounting fiscal pressures and administrative bottlenecks.
Only 48 percent of the Annual Development Programme (ADP) allocation was implemented during the first 11 months of FY2025-26, according to data released by the Implementation Monitoring and Evaluation Division (IMED) on Thursday.
Government agencies spent Tk 100,769 crore between July and May against a revised ADP outlay of Tk 208,935 crore, making both the expenditure volume and implementation rate the lowest recorded in the past six fiscal years.
Historical IMED data show that this is the poorest July-May implementation performance since at least FY2010-11. In most years, ministries and agencies manage to utilise between 65 and 70 percent of ADP allocations during the same period.
The sharp slowdown comes at a time when Bangladesh is grappling with revenue shortfalls, pressure on public finances and efforts by the interim government to reassess development priorities.
Planning Ministry officials said stricter scrutiny of projects, tighter spending controls and longstanding weaknesses in project management contributed to the sluggish performance.
Several ministries lag badly
The implementation record of several ministries and divisions was particularly poor.
The Parliamentary Affairs Secretariat posted zero implementation despite having a development allocation of Tk 2 million, failing to spend any funds during the first 11 months of the fiscal year.
Five other ministries and divisions spent less than one-quarter of their allocated development budgets. These were the Health Education and Family Welfare Division, Public Security Division, Ministry of Environment, Forest and Climate Change, Ministry of Commerce and the Internal Resources Division.
The figures underscore persistent challenges in translating budget allocations into actual project execution, a problem that has long plagued public investment management in Bangladesh.
Revenue crunch weighs on projects
Officials and analysts identified a combination of financial, institutional and administrative factors behind the weak performance.
A major reason is the government’s deteriorating fiscal position. Revenue collection fell far short of target during the fiscal year, creating a funding squeeze for development activities. Officials said the government prioritised mandatory expenditures—including salaries, pensions and debt servicing—before releasing funds for development projects.
As a result, many projects experienced slower disbursement of funds and delayed implementation.
Structural weaknesses persist
Beyond funding constraints, experts pointed to chronic shortcomings in project preparation and execution.
Many implementing agencies continue to suffer from limited technical and managerial capacity, often failing to complete works according to approved schedules. Delays by contractors, slow procurement processes and lengthy approval procedures further hamper progress.
Land acquisition remains another major obstacle. Projects frequently face prolonged delays because of legal disputes, compensation issues and administrative complications related to acquiring land.
Weak feasibility studies also continue to undermine project delivery. In many cases, projects require repeated revisions after approval, resulting in higher costs, design changes and extensions of completion deadlines.
Policy review slows spending
The political transition has also affected implementation.
The interim government initiated reviews of a number of previously approved projects to assess their necessity, cost-effectiveness and transparency.
While officials argue that the process will improve the quality of public spending, it has temporarily slowed fund releases and implementation of some projects under review.
Analysts said stronger project selection, faster procurement, improved accountability and enhanced implementation capacity would be essential to reverse the trend.
The latest figures suggest that despite record development budgets in recent years, Bangladesh continues to struggle with one of the most persistent weaknesses in public finance management: turning allocations on paper into projects on the ground.