ADP Implementation Plunges to Historic Low, Failing to Generate Jobs

The current government, which came to power with strong public support and promises of development, has ambitious development goals. The Annual Development Programme (ADP) is a key tool for fulfilling these promises. Every year, the government allocates funds for the ADP in the national budget to finance development projects across different sectors. The level of implementation at the end of the fiscal year provides an indication of the country’s progress in development.

However, the ADP has never been fully implemented in any fiscal year. A portion of the allocation remains unspent, leaving some development targets unmet. This reflects the government’s continued failure to implement its development plans fully. Even the original allocation is often reduced through a revised ADP, which also frequently remains partially unimplemented.

The situation was particularly poor in the fiscal year 2025–26. Against an ADP allocation of around Tk 209,000 crore, the government spent Tk 141,071 crore, or 67.52 per cent. This was the lowest implementation rate in 50 years.

The situation has deteriorated further in the first quarter of the current fiscal year, July–September 2026. Eight months have passed since the current government took office, and four months of the current fiscal year are nearly over. Yet, the government has failed to overcome the longstanding obstacles to ADP implementation. The implementation rate has fallen to an unprecedented low.

Delays in tendering, appointing contractors, releasing funds and securing administrative approval for expenditure have slowed the government’s development efforts. These delays are undermining progress towards the current fiscal year’s development target of Tk 308,924.86 crore. Although the first three months of the fiscal year have passed, ADP implementation has not even reached 4 per cent.

According to the latest report from the Implementation Monitoring and Evaluation Division (IMED) of the Planning Commission, only 3.89 per cent of the ADP was implemented in the first quarter of FY2026–27. This is the lowest rate on record. Never before has Bangladesh spent such a small proportion of its ADP allocation during the first three months of a fiscal year. The health services sector recorded the lowest expenditure.

The slowdown in development activities following the fall of Sheikh Hasina’s government in August 2024 and the mass uprising that year has continued to affect project implementation. Economists say delays in development projects not only hold back infrastructure construction but also reduce public investment, limit job creation and weaken demand in the economy. Delays in projects involving transport, power, health, education and water resources can affect economic activity across the country.

Experts therefore stress that increasing the size of the ADP is not enough. The government must also improve implementation capacity and ensure accountability. The latest IMED report indicates that although allocations have increased, the government’s ability to spend the funds on time has not improved. This has raised fresh questions about the effectiveness of development expenditure and the government’s capacity to implement projects.

Economist Dr Mustafa K Mujeri, former director general of the Bangladesh Institute of Development Studies (BIDS), said project priorities must be set before projects are undertaken, and approved projects must be moved quickly into the implementation stage. Unless administrative and institutional obstacles are reduced, it becomes difficult to make up for delays that occur at the beginning of the fiscal year. Such delays also affect project quality.

Dr Mustafizur Rahman, distinguished fellow at the Centre for Policy Dialogue (CPD), said leaving a significant portion of development funds unspent has multiple negative effects on the economy. When projects are not implemented as planned, the services they are expected to provide are not delivered, depriving the economy of potential momentum.

He said project expenditure is financed through borrowing rather than government revenue. The government must borrow either from foreign or domestic sources, leaving it with a debt burden. Delayed implementation also increases project costs significantly.

To address these problems, he said, the government must give proper attention to implementation capacity and strengthen the ministries and divisions responsible for carrying out projects. Each ministry could have its own implementation, monitoring and evaluation office. At the central level, the IMED must also be strengthened to perform its oversight role effectively.

According to the IMED report, government ministries and divisions spent Tk 12,017.54 crore during the first three months of FY2026–27, which began on July 1. This accounted for only 3.89 per cent of the total ADP. The latest report on development project implementation has highlighted the unprecedentedly poor performance. During July–September of FY2025–26, the implementation rate was 5.09 per cent, with expenditure of Tk 12,158.27 crore.

The student movement that began in July 2024 led to the fall of the Awami League government on August 5. The resulting deterioration in law and order and administrative reshuffles, alongside the political transition, slowed development activities from the beginning of FY2024–25. The slowdown has continued.

In the past, development activities often accelerated before national elections under elected governments, as ruling parties sought to attract voters by rapidly implementing projects across the country. The most recent example was before the January 7, 2024, national election, when the Awami League government inaugurated one development project after another. Similar activity was not seen before the February 12 election under the interim government, contributing to a slower pace of development work.

Eight months have passed since the political government led by BNP Chairman Tarique Rahman took office, but ADP implementation has yet to gain momentum. In September, the third month of the current fiscal year, expenditure on various projects stood at Tk 6,307.84 crore, or 2.04 per cent of the total ADP. In August, the second month, expenditure was Tk 3,588.52 crore, or 1.16 per cent. In July, the first month, the government spent Tk 2,121.18 crore, equivalent to 0.69 per cent of the ADP.

The development budget for FY2026–27 allocates Tk 308,924.86 crore for 1,172 projects. These include 986 investment projects, 23 feasibility studies, 109 technical assistance projects, nine block allocations for development assistance and 45 projects financed from the agencies’ own funds.

Slow Project Implementation Limits Job Creation

A three-year project worth Tk 100 crore undertaken by the Local Government Division could have a significant positive impact on rural and local economies while creating substantial direct and indirect employment. Labour-intensive development projects, such as road construction, culverts, market infrastructure and drainage systems, can provide immediate and long-term sources of income for local residents.

Over the three-year period, such projects can create direct employment for local labourers, masons, engineers and supervisors. They can also stimulate indirect employment through construction material suppliers, transport services, restaurants, hotels and accommodation providers.

In the longer term, these projects can support sustained economic activity, improve connectivity, expand agriculture and trade, and create new markets. However, few such projects are being initiated during the first quarter of the current fiscal year. Those that have been taken up are reportedly held back by bureaucratic complications.

Despite the unrest and subsequent instability following the mass uprising, ADP implementation during July–September of FY2024–25 stood at 4.75 per cent, with expenditure of Tk 13,215.30 crore. In the same period of FY2023