Jul-Mar ADP execution rate hits 12-year low

The development expenditure recorded a 12-year low in the first nine months of the current fiscal year (FY 2024-25), thanks to strict monitoring and dropping many big projects and cutting segments of some ongoing ones.

The government ministries and agencies spent only Tk 828.94 billion or 36.65 per cent of the Tk 2.26 trillion revised ADP outlay during the July-March period of this FY, according to latest data of the Implementation Monitoring and Evaluation Division (IMED).

In the same period last FY2024, the spending was Tk 1.07 trillion or 42.30 per cent of the Tk 2.54 trillion ADP.

An FE analysis found that the expenditure on implementation of projects under the Annual Development programme (ADP) during the third quarter of FY '25 was lowest in the last 12 years.

When asked, a senior IMED official said strict monitoring by the interim government is one of the key reasons for the lower ADP execution rate.

After taking over office, the interim administration reduced expenditure of many big projects and cut elements of many ongoing projects, leaving an impact on the overall execution rate, he added.

"We're trying to ensure quality implementation of the projects rather than showing higher spending," said the official.

At the end of ninth month (March) of FY '25, the ministries and other government agencies have failed to improve their budget expenditure when they could spend only 6.78 per cent, 1.87 percentage points lower than that of the corresponding period FY '24, officials at the IMED said on Thursday.

According to the IMED, the Energy and Mineral Resources Division (EMRD) and some other largest public budget holding ministries and agencies have performed well, but the overall execution rate is still at a record low level.

The public agencies performed their worst in spending from the local funds during the three quarters while the autonomous and semi-autonomous bodies performed better.

During the July-March period, an official said the government agencies spent Tk 443.76 billion or 32.87 per cent of the Tk 1.35 trillion allocations from the internal resources (GoB fund).

In the same period, they spent Tk 324.11 billion or 40.01 per cent of the Tk 810 billion from external resources (project aid), he said.

The autonomous and semi-autonomous bodies spent Tk 61.07 billion or 60.08 per cent of the total Tk 101.65 billion outlay, the IMED data showed.

Among the largest ADP budget holders, the performances of the ministries of health, shipping, railways and primary and mass education, and bridges division were below the average rate of 36.65 per cent in the first nine months this fiscal year.

The health division executed 14.41 per cent during the period under review while shipping ministry spent 25.83 per cent, bridges division 27.09 per cent, railway ministry 32.71 per cent..

The EMRD showed best performance as it implemented 79.71 per cent of its ADP outlay, followed by power division 56.27 per cent, agriculture ministry 54.36 per cent, science and technology ministry 46.38 per cent, local government engineering department (LGED) 45.26 per cent, and primary and mass education ministry 37.66 per cent in July-March period, the IMED data showed.

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