ADP execution drops to record low in volatile Jul-Dec

The implementation of the Annual Development Programme (ADP) in the first six months of the current fiscal year stood at 17.97% – the lowest on record – due to administrative instability resulting from the July mass uprising. 

During this period, ministries and departments spent a total of Tk50,002 crore, according to data released by the Implementation Monitoring and Evaluation Division (IMED) today. 

By comparison, in the equivalent period of the previous fiscal year, the ADP execution rate was 22.48%, with development spending amounting to Tk61,739.69 crore. 

The ADP implementation has never been so sluggish in any fiscal year since records began in 2011-12, as per data available on the IMED website. 

IMED officials attributed the sluggish implementation to the student-led upheaval that culminated in the ousting of prime minister Sheikh Hasina on 5 August. The resulting instability across the administration has yet to stabilise, hindering the recovery of development spending momentum. 

The government has also reviewed all ongoing projects initiated during the previous Awami League government, dropping many deemed irrelevant or politically motivated. This reassessment has further impacted implementation. 

Additionally, following the uprising, numerous development project directors abandoned their roles. Furthermore, many local contractors have yet to return to project sites, and foreign contractors remain absent from several foreign-funded projects, significantly slowing the progress of project execution. 

Mustafa K Mujeri, executive director of the Institute for Inclusive Finance and Development, told The Business Standard, "Following the July uprising, instability persists across all sectors, and the situation remains far from normal. This has led to the lowest ADP implementation rate in over a decade. Moreover, it is uncertain when conditions will improve, leaving little time for recovery within the current fiscal year." 

According to IMED data, the government spent Tk26,130 crore from its funds in July-December, representing 15.84% of the total allocation. This is a significant drop from the same period last fiscal year, when Tk34,429 crore – 20.37% of the allocated government funds – was spent. 

Expenditure from foreign funds during the period stood at Tk19,609 crore, or 19.61%, compared to Tk24,569 crore, or 26.14%, in the same period of the previous fiscal year. 

The data also reveals that many ministries and departments with higher allocations are lagging significantly in implementing the ADP. 

Between July and December, the Health Services Division achieved an implementation rate of just 4.92%, while the Bridges Division implemented 7.84%. 

The health, education, and family welfare divisions managed only 0.14%, the Ministry of Shipping 9.50%, the Ministry of Social Welfare 5.23%, and the Office of the Chief Adviser 8.61%.