In the first month of the fiscal year 2024-25, the government’s ministries and departments spent Tk2,922 crore from the Annual Development Programme (ADP) allocation. This expenditure accounts for just 1.05% of the total ADP allocation for the fiscal year, according to the latest report from the Implementation Monitoring and Evaluation Department (IMED).
IMED officials explained that ADP implementation rates typically remain low at the beginning of the fiscal year as project officials are occupied with preparatory work during this period. Additionally, the low spending rate in July this year was attributed to blockades and political unrest across the country.
For comparison, the ADP implementation rate was 1.27% in July of FY2024 and 0.96% in July of FY2023.
The total ADP allocation for the current financial year is set at Tk278,288.90 crore. However, finance ministry officials indicated that the interim government is now considering cutting “wasteful expenditures” to ease the pressure on foreign currency reserves and manage ongoing inflation. As a result, it is likely that the ADP allocation may be adjusted during the fiscal year.
