Bangladesh’s development activities have been progressing, but the interim government’s “go slow” policy since the change of power has resulted in the implementation of just 18% of the Annual Development Plan (ADP) during the first six months of the fiscal year.
Between July and December, 17.97% of the ADP was implemented, marking a 4.51 percentage point drop from the 22.48% achieved in the same period of the previous fiscal year. This is the lowest implementation rate for the first half of the fiscal year in the past five years, according to data from the Implementation Monitoring and Evaluation Division of the Ministry of Planning.
In comparison, the implementation rate during the same period was 23.53% in the 2022-23 fiscal year, 24.06% in 2021-22, and 23.89% in 2020-21.
Experts attribute the slowdown to the mass uprising at the start of the fiscal year, which led to a power transition in August, worsened law and order, and a reshuffling of the administration.
Data from the Monitoring and Evaluation Division shows Tk 500 billion was spent on development projects between July and December this year, compared to Tk 617.39 billion during the same period last fiscal year.
However, ADP implementation showed signs of improvement mid-year. In December alone, Tk 157.87 billion was spent on development work, representing 5.67% of the ADP. This is slightly higher than the 5.42% or Tk 148.82 billion spent in December of the previous fiscal year.
The budget passed by the ousted Awami League government allocated Tk 782.88 billion for the ADP. After assuming power, the interim government focused on restructuring development programmes, reducing funding for many projects initiated by the previous government. This slowed down the implementation of ongoing projects and reduced ADP spending, officials said.
Typically, ADP spending is lower at the start of a fiscal year. This year, political turmoil caused an even greater drop.
Following the last meeting of the Executive Committee of the National Economic Council (ECNEC), Planning Advisor Prof. Wahiuddin Mahmud mentioned the possibility of increased project implementation in the second half of the fiscal year.
He noted that the government had implemented ADP worth Tk 440 billion until December this fiscal year, compared to Tk 620 billion during the same period last year.
Prof. Mahmud also highlighted the scrutiny and revision of old projects, with some paused for corrections. “For the first time, we are seeing new projects, particularly at the local level. This ECNEC meeting approved several projects quickly,” he said.
