Execution of Annual Development Programme

The dismal implementation rate of the Annual Development Programme (ADP) during the first half of the 2024-25 fiscal year highlights not only the sluggish progress of development projects but also the appalling performance of certain public sector agencies, notably the Ministry of Health and Family Welfare. While cautious government spending and work disruptions due to political instability may, to some extent, explain the slow execution, these factors alone cannot justify the underperformance of most of the ministries.

Data from the Implementation Monitoring and Evaluation Division (IMED) reveal that the ADP implementation rate during the first half of FY2025 was the lowest in 12 years. Government agencies managed to spend only 17.97 per cent of the Tk 2.78 trillion allocated for development works, which was 9.6 per cent higher than the previous fiscal year's revised budget. Consequently, project-implementing agencies now face the challenge of utilising the remaining 82.03 per cent of the ADP allocation in the second half of the fiscal year, spanning the six months from January to June 2025. For comparison, the execution rate during the same period in the previous FY2024 was 4.51 percentage points higher. In contrast to state agencies, autonomous and semi-autonomous government bodies demonstrated better performance with the utilisation rate of 32.08 per cent during this period. Particularly concerning is the performance of the Health Services Division under the Ministry of Health and Family Welfare, which holds the eighth-largest share of the development budget. This division utilised a mere 4.92 per cent of its Tk 111.53 billion allocation. This poor execution rate significantly hindered the expected outcomes of ADP projects, as per IMED data. The Bridges Division followed closely with its utilisation rate of 7.84 per cent. Other major ministries also performed poorly: the Ministry of Shipping utilised 9.50 per cent, Secondary and Higher Education Division 13.52 per cent, Roads and Highways Division 16.04 per cent, and the Primary and Mass Education Division 16.60 per cent. Notably, the Power Division stood out with a comparatively better execution rate of 30.58 per cent during the period.

Beyond the statistical data, the extremely low execution rates of key ministries like Health and Family Welfare are deeply troubling. In a country where public health remains a pressing issue with numerous areas urgently requiring funding for essential development works, the failure to implement priority projects is perplexing. This is especially concerning given that the ADP allocations are made on the basis of projects designed well in advance.

Addressing this inefficiency requires urgent and comprehensive measures. Strengthening project planning, streamlining administrative procedures and enhancing accountability mechanisms could significantly improve implementation rates. Ministries must identify and resolve bottlenecks hindering project execution. Furthermore, regular performance evaluations and transparent reporting can foster greater responsibility among project-implementing agencies. Efficient ADP execution is critical for fostering sustainable development and meeting national growth objectives. Without prompt and decisive action to address these inefficiencies, the country risks falling short of its developmental goals, ultimately impacting public welfare and economic progress.