ADP implementation slows in July as spending drops sharply

The Annual Development Programme (ADP) has seen a weaker start to the fiscal year 2025-26, with spending in July falling to Tk 16.44 billion, compared with Tk 29.22 billion during the same month last year.

Data from the Implementation Monitoring and Evaluation Division (IMED), released on Monday, showed that the ADP utilisation rate dropped to 0.69 percent of allocation in July, from 1.05 percent a year earlier, when political turmoil had slowed activities.

Planning Advisor Wahiduddin Mahmud said after Sunday’s ECNEC meeting that the figure was “not a good sign”, pointing out that project implementation was slower than last year despite expectations of faster progress.

He attributed part of the slowdown to the replacement of project directors and the flight of contractors linked to the previous government, noting that many new contractors had yet to be appointed.

He added that this year’s budget had been deliberately “realistic” in size and should be fully implemented.

“There can be no excuses now. All ministries must ensure projects proceed at a normal pace,” he said, hinting that a revised ADP could be announced as early as December or January ahead of the February national election.

The slowdown comes after ADP performance hit a two-decade low in 2024-25, with only 67.85 percent of the revised allocation spent, down from 80.63 percent the year before. Political upheaval, shutdowns, curfews, and later the government’s collapse had left many projects stalled, while several were suspended entirely on financial and political grounds.