ADP implementation slumps to record low at 67.85%

The implementation rate of Bangladesh’s Annual Development Programme (ADP) dropped to a historic low of 67.85% in the fiscal year 2024–25, severely impacted by political transition and administrative tightening that disrupted the execution of government development projects.

According to data from the Implementation Monitoring and Evaluation Division (IMED), this is the lowest ADP implementation rate ever recorded in the country’s fiscal history.

In comparison, the implementation rate in FY2023-24 stood at 80.63%, highlighting a sharp year-on-year decline.

The fall in development spending coincided with major political changes. Following the fall of the Awami League government early in the fiscal year, many politically linked contractors reportedly abandoned ongoing projects, creating a vacuum in execution, an IMED official said.

After taking office on 8 August 2024, the interim government led by Prof Muhammad Yunus introduced strict austerity measures to curb fiscal imbalances. These included re-evaluation of major projects and stricter oversight of public spending.

“The sudden change in political leadership and lack of financial discipline under the previous administration have made project implementation increasingly difficult,” said an official involved in ADP coordination.

Of the revised ADP allocation of Tk2.26 lakh crore, the government was able to spend only Tk1.53 lakh crore in FY2024-25. In contrast, Tk2.05 lakh crore was spent the previous year despite fiscal and external constraints.

The slowdown was most visible in June 2025, the month that typically sees the highest ADP spending. Only Tk42,445 crore – just 18.77% of the revised ADP – was spent that month, compared to over 23% in June of the prior year.

Foreign aid utilisation hits record low

Implementation of foreign-aided projects was particularly weak.

Of the Tk81,000 crore allocated for externally funded projects, only Tk53,000 crore, 65.53%, was utilised, marking the lowest foreign aid utilisation rate on record. During the COVID-19 pandemic, by contrast, over 92% of foreign aid allocations were implemented, despite global disruptions. According to IMED, the ADP for FY2024-25 comprised 1,468 projects, including 1,230 investment projects, 112 technical assistance projects, and 32 feasibility studies.

Wide performance gaps among ministries

Several ministries and agencies posted dismal implementation rates.

Among the poorest performers in ADP implementation was the Health Education and Family Welfare Division, which managed to spend only Tk350 crore out of its Tk2,283 crore allocation for 15 projects – an implementation rate of just 15%.  Other underperforming entities included the Health Services Division, 21%, the Election Commission Secretariat, 32%, the Bangladesh Public Service Commission (BPSC), 37%, and the Ministry of Land, 37%.

In contrast, the Power Division stood out as the top performer, utilising 98% of its allocation, reflecting strong planning, consistent demand, and robust implementation capacity in the energy sector.