Written by The Banking Post
Bangladesh’s development spending lost momentum in the first nine months of FY2025-26, with overall implementation of the Revised Annual Development Programme (RADP) slipping to 36.19%—the lowest in a decade.
Data from the Implementation Monitoring and Evaluation Division (IMED) show that ministries and divisions spent Tk 756.07 billion out of a total allocation of Tk 2.09 trillion during July–March. The execution rate fell from 36.65% a year earlier and 42.30% in FY2023-24, marking a second consecutive annual decline.
The slowdown was largely driven by poor spending in key social sectors. Core ministries responsible for human development—including primary education, health and education—used less than one-third of their allocations, pulling down the overall performance.
Year-on-year, development expenditure dropped by Tk 72.87 billion, or 8.79%, highlighting a significant contraction in public investment.
Economists attributed the sluggish pace to weak implementation capacity, limited institutional accountability and administrative inefficiencies. Delays in appointing project directors, procurement bottlenecks and prolonged project reviews were cited as major obstacles.
To meet the full-year target, the government would need to spend around Tk 1.33 trillion in the remaining three months—an objective experts described as “highly challenging” under current fiscal constraints.
Spending from domestic resources remained particularly weak, with only 33.04% of the Tk 1.28 trillion allocation utilised. In contrast, foreign-funded projects performed relatively better, with a 40.08% utilisation rate.
Among major sectors, health and education lagged significantly. The Medical Education and Family Welfare Division utilised just 19.68% of its allocation, while the Health Services Division spent 21.69%. The Ministry of Primary and Mass Education used 24.99% of its funds.
Other sectors showed modest progress. The ICT Division implemented 28.90% of its allocation, while the Road Transport and Highways Division reached 31.39%. A few ministries, including women and children affairs and disaster management, hovered slightly above 32%.
Experts warned that continued underperformance in health and education—already facing resource constraints—could undermine long-term human capital development.
They stressed that without stronger execution capacity and institutional reforms, Bangladesh risks falling short of its development goals despite having sizeable budget allocations.
