Written by The Banking Post
Implementation of Bangladesh’s development budget has picked up slightly in the current fiscal year, though overall progress remains below historical trends.
Data from the Implementation Monitoring and Evaluation Division (IMED) show that 30.31 per cent of the Annual Development Programme (ADP) was executed during the July–February period of FY2025–26, up marginally from 29.87 per cent a year earlier.
In value terms, development spending reached Tk 633.27 billion out of the Tk 2.089 trillion allocation. However, the amount remains lower than the Tk 675.53 billion spent during the same period last year.
Despite the modest improvement, implementation continues to trail pre-2024 levels. The execution rate stood at 33.65 per cent in FY2024, 34.74 per cent in FY2023, and 38.60 per cent in FY2022.
Officials attribute the slower pace to weak performance in several key sectors. The Primary and Mass Education Ministry, Railway Ministry, Technical and Madrasa Education Division, Roads and Highways Division, and Health Services Division all recorded relatively low implementation rates—ranging between 20 and 25 per cent—dragging down overall progress.
The lingering impact of administrative disruptions following the 2024 political transition has also weighed on project execution. Changes in leadership and contractor exits disrupted continuity, affecting the pace of development work.
Performance, however, has varied widely across ministries. The Ministry of Science and Technology led with an implementation rate of 70.74 per cent, followed by the Cabinet Division (64.21 per cent) and the Ministry of Food (62.13 per cent).
The Local Government Division, the largest recipient of ADP funds, implemented 41.62 per cent of its allocation, while the Power Division achieved 36.88 per cent.
On the other end, progress remained sluggish in some areas, with the Public Security Division implementing just 3.79 per cent and the Internal Resources Division 7.51 per cent of their respective budgets.
Monthly data indicate a pickup in spending momentum. In February alone, development expenditure rose to Tk 127.71 billion—nearly double the Tk 76.76 billion recorded in the same month last year.
The ADP for FY2026 includes 1,359 projects, comprising 1,145 investment projects and 121 technical assistance initiatives.
While implementation is gradually recovering, officials say sustained momentum will be key to meeting development targets by the end of the fiscal year.
