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efficiently. Delays, cost overruns and implementation bottlenecks often prevent public spending from delivering the expected economic benefits.

The problem extends to foreign financing as well. Bangladesh has access to substantial external funding. But many foreign-assisted projects suffer from implementation delays, reducing the country’s ability to utilise those foreign resources.

The consequences are far-reaching.

Government spending supports essential services, builds infrastructure and strengthens social protection programmes. These investments improve living standards, reduce inequality and create conditions for stronger economic growth.

Infrastructure spending is particularly important because it encourages private investment and job creation.

“If physical infrastructure does not improve, private-sector investment will not be encouraged, and economic growth may fall short of its potential,” said Fahmida.

She said higher and more efficient public spending could therefore make a substantial contribution to both economic development and social welfare.

However, increasing expenditure alone is not enough. The quality and timeliness of spending matter just as much, added the economist.

The country’s development spending has long been hampered by implementation weaknesses.

According to the Implementation Monitoring and Evaluation Division (IMED), only 41.41 percent of the revised Annual Development Programme (ADP) allocation was utilised during the first 10 months of fiscal year 2025-26.

That means the challenge is not simply the size of the budget. It is also the state’s ability to execute projects efficiently.