The Bangladesh government is likely to propose a Tk 2.30 trillion Annual Development Programme (ADP) for the next fiscal year, despite a sluggish implementation rate of the current development budget.

Official data show that only 24.27% of the outgoing ADP was executed in the first eight months of FY2024-25, marking the lowest implementation rate in 14 years. In comparison, the execution rate was 31.18% in the same period last year.

Originally set at Tk 2.65 trillion, the current fiscal year’s ADP was revised down by Tk 49 billion to Tk 2.16 trillion due to the slow pace of implementation. Officials warn that the new ADP size may once again prove too ambitious, given the limited execution capacity of ministries and agencies.

Finance Division Secretary Dr Khairuzzaman Mozumder acknowledged the challenge, noting that despite the revision, ministries are still struggling to spend the allocated funds.

Economist Dr Zahid Hussain believes the proposed Tk 2.30 trillion ADP is too large, considering both implementation challenges and revenue collection trends. He pointed to an inactive administration and post-election political uncertainties as factors contributing to the poor disbursement of foreign aid, with $45 billion reportedly stuck in the pipeline.

Officials say the government is reviewing projects to remove less critical ones. However, they fear that if the current trend continues, this year’s ADP implementation could be one of the lowest in Bangladesh’s history.