Health sector slowest as development spending reaches 48% in 11 months

The slowdown triggered by the July Uprising and administrative reshuffles continues to weigh on development spending

Bangladesh implemented just 48.23 percent of its Annual Development Programme (ADP) during the first 11 months of the outgoing fiscal year, marking the lowest execution rate in 16 years.

Data released on Thursday by the planning ministry's Implementation Monitoring and Evaluation Division (IMED) showed that the Ministry of Science and Technology recorded the highest spending against its allocation between July and May of fiscal year 2025-26.

The Health Services Division posted the worst performance.

The interim government had initially targeted ADP spending of Tk 2.39 trillion for the fiscal year.

However, amid sluggish implementation, the National Economic Council (NEC) cut the programme by Tk 300 billion on Jan 12, reducing it to Tk 2.09 trillion.

The latest figures show total expenditure of Tk 1.08 trillion across all development projects during the first 11 months.

In the same period of fiscal year 2024-25, spending stood at Tk 1.11 trillion, with an implementation rate of 49.08 percent.

An analysis of IMED data suggests that the slowdown in ADP execution that followed the 2024 July Uprising, deteriorating law-and-order conditions and administrative reshuffles has yet to ease.

Government ministries and divisions spent Tk 142.48 billion in May alone, down from Tk 175.81 billion in May of the previous fiscal year.

The Awami League government had originally approved an ADP allocation of Tk 2.78 trillion for fiscal year 2024-25.

The interim government later reduced it to Tk 2.26 trillion, of which Tk 1.53 trillion was spent, yielding an implementation rate of 67.85 percent -- the lowest in two decades.

After taking office following the student-led mass uprising that toppled the Awami League administration, the interim government prioritised selected projects and scaled back funding for many initiatives approved under the previous government, leaving numerous projects stalled.

ADP implementation rates during the first 11 months of the previous four fiscal years were 64.84 percent, 61.73 percent, 57.54 percent and 49.08 percent, respectively.

IMED records dating back to fiscal year 2010-11 show that this year's performance is the weakest in 16 years.

Over the previous 15 years, implementation rates generally ranged between 65 percent and 70 percent.

Among the 15 ministries and divisions receiving the largest allocations, the average implementation rate was 59.09 percent. Together they accounted for 70.97 percent of the revised ADP.

Science and technology led with 83.33 percent, followed by energy and mineral resources at 79.48 percent and agriculture at 68.83 percent.

At the bottom was the Health Services Division, which spent only 22.15 percent of its allocation.