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Government Spending Plummets in Fiscal Year’s First Months

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The utilization of the Annual Development Programme (ADP) hit a historic low in the initial two months of the current fiscal year, with government entities disbursing a mere Tk 5,709 crore in July and August. This spending represented a meager 1.85 percent of the total ADP allotment for the fiscal year 2026-27, as per data disclosed by the Implementation Monitoring and Evaluation Division (IMED) recently.

Comparatively, the implementation rate stood at 2.39 percent during the corresponding period of the previous fiscal year. Although government fund utilization saw a slight uptick in the first two months of FY27, there was a reduction in the utilization of foreign financing.

The deceleration in spending occurred despite the government’s initiative to introduce a reduced ADP for the ongoing fiscal year as part of its cost-cutting measures. The ADP for FY27 was set at Tk 308,000 crore, encompassing contributions from government entities’ internal resources.

Among the 56 ministries and divisions executing development projects, nearly 17 utilized less than 1 percent of their allocations in the period under review, with five entities reporting zero expenditures. Notably, the Ministry of Primary and Mass Education led in implementation rate at 10.75 percent, followed by the Local Government Division at 5.93 percent and the Secondary and Higher Education Division at 5.42 percent.

Conversely, the Ministry of Shipping registered the lowest implementation rate among the top 15 entities, utilizing only 0.18 percent of its allocation.

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