Written by The Banking Post
Implementation of the government’s development budget has fallen to its lowest level in five years during the first seven months of FY2025–26, signalling a continued slowdown in project execution under the interim administration.
Data from the Implementation Monitoring and Evaluation Division (IMED) show that only 21.18 per cent of the Annual Development Programme (ADP) allocation was utilised between July and January.
Total spending during the period stood at Tk 505.56 billion, compared with Tk 598.77 billion, or 21.52 per cent implementation, in the same period of the previous fiscal year.
The slowdown becomes more evident when compared with earlier years. The July–January implementation rate was 27.11 per cent in FY2023–24, 28.16 per cent in FY2022–23 and 30.21 per cent in FY2021–22.
For FY2025–26, the total ADP allocation is Tk 2.39 trillion — lower than Tk 2.79 trillion in FY2024–25 and Tk 2.75 trillion in FY2023–24.
Monthly figures also reflect weak momentum. In January alone, spending amounted to Tk 86.79 billion, or 3.64 per cent of the annual allocation, compared with Tk 98.74 billion in January of the previous fiscal year.
Officials attributed the slower pace to administrative adjustments, cautious expenditure management and slower approval processes during the interim period. Project insiders also cited delays in procurement, land acquisition and fund release.
Economists warn that prolonged sluggishness in ADP execution could dampen economic activity, as public investment plays a key role in infrastructure expansion, employment generation and overall growth.
Planning ministry officials, however, expressed optimism that spending would gather pace in the remaining months, as ministries and agencies typically accelerate implementation toward the end of the fiscal year.
The ADP is the government’s principal development budget, financing major infrastructure and social sector projects. With less than half the fiscal year left, the coming months will determine whether execution can catch up — or if FY2025–26 closes with the weakest implementation rate in recent years.
