ADP spending hits 17-year low in Jul-Aug

Implementation of the Annual Development Programme (ADP) fell to its lowest level in at least 17 years in the first two months of the current fiscal year, with government agencies spending only Tk 5,709 crore in July and August.

The spending accounted for just 1.85 percent of the total ADP allocation for fiscal year 2026-27, according to data from the Implementation Monitoring and Evaluation Division (IMED) published today.

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The implementation rate was 2.39 percent during the same period of the previous fiscal year.
In the first two months of FY27, spending from government funds increased slightly, while the use of foreign financing declined.

The slowdown came despite the government's decision to introduce a smaller ADP for the current fiscal year as part of its austerity measures.

The government set the ADP at Tk 308,000 crore for FY27, including funds from government agencies' own sources.

Of the 56 ministries and divisions implementing development projects, nearly 17 used less than 1 percent of their allocations during the period. Five had not made any expenditure at all.

Among the 15 entities with the highest ADP allocations, the Ministry of Primary and Mass Education recorded the highest implementation rate at 10.75 percent. The Local Government Division followed with an implementation rate of 5.93 percent, while the Secondary and Higher Education Division spent 5.42 percent of its allocation.

The Ministry of Shipping recorded the lowest implementation rate among the 15 entities, using only 0.18 percent of its allocation. The Ministry of Railways spent 0.59 percent, while the Health Services Division used 1.35 percent of its allocation during the first two months of FY27.