Bangladesh ADP 2025-26 sees only 17.5% implementation in first half, lowest in two decades

Political turmoil and budget cuts slow development spending to record low

Bangladesh’s Annual Development Programme (ADP) has recorded its lowest mid-year implementation rate in two decades, with only 17.54 percent of allocations spent in the first six months of the 2025-26 fiscal year.

According to the Implementation Monitoring and Evaluation Division (IMED), Tk 418.76 billion was spent between July and December, down from Tk 500.02 billion in the same period last year.

The rate is lower than the 17.97 percent recorded in 2024-25 and well below the 22-24 percent seen in the three preceding years.

December alone saw 5.8 percent of allocations spent, slightly higher than 5.67 percent in the same month last year.

The interim government has already slashed Tk 300 billion from the ADP, reducing the revised allocation to Tk 2 trillion.

The biggest cuts came in health and education, with health spending reduced by 73 percent and secondary and higher education by 55 percent.

Political upheaval following last year’s August change of government, curfews, and shutdowns slowed project execution.

Many contractors linked to the previous administration went into hiding, while the new government reviewed projects, leaving development activity stagnant.

At the end of 2024-25, ADP implementation stood at 67.85 percent, down from 80.63 percent the year before.

IMED data shows no fiscal year since 2004-05 recorded such a low rate.

The revised ADP was approved at Monday’s NEC meeting chaired by the chief advisor.

Officials noted that while disbursement is usually slow in the first half of the year, political disruption and budget cuts have pushed implementation to historic lows.