The National Economic Council (NEC) today approved an Annual Development Programme (ADP) outlay of Tk 2,30,000 crore for the next fiscal year (FY26) keeping highest allocation in the transport and communication sector. NEC Chairperson and Chief Adviser Professor Dr Muhammad Yunus presided over the meeting held at the NEC conference room in the city’s Sher-e-Bangla Nagar area today.
Advisers concerned attended the meeting. Of the ADP outlay of Tk 2,30,000 crore for the next fiscal year (FY26), Tk 1,44,000 crore will come from the government of Bangladesh portion while the rest of Tk 86,000 crore as project loan and grant. However, considering an allocation of Tk 8,599.71 crore from the concerned organization’s own fund, the overall ADP allocation for the next fiscal year reached Tk 2,38,599.71 crore. Briefing reporters after the meeting, Planning Adviser Dr Wahiduddin Mahmud said that the approved ADP is part of the new budget for FY26 which would be announced by Finance Adviser Dr Salehuddin Ahmed on June 2.
Dr Mahmud said that the strategy of the entire budget for the next fiscal year is to restore economic stability, bringing down inflation, restoring discipline in budget management and thus making it sustainable. “At the same time, our target will be not to fall in the trap of loan either local or foreign side by side to ensure there is no added pressure on us in repaying loans as well as there is no added pressure on us in meeting development and operating expenditure,” he said, adding that the government would try to come out from this vicious cycle, which prevailed in the past.
Mentioning that it is not possible to boost the revenue collection overnight, the Planning Adviser said despite this, the government would try to keep the expenditure to a level side by side keeping budget deficit within four percent of GDP. He said that the interim government would not be able to reduce subsidies against various sectors all on a sudden considering the inflationary trend.
Dr Mahmud said that apart from restoring discipline, this budget would not be an “irresponsible” one where no such expenditure would be made to appease the common people in the short term which could later increase the liabilities. The Planning Adviser said that fresh mega projects or long-term projects are not taken in the new ADP except the Matarbari Deep Sea Port project to be funded by Japan. He said that the government is gradually repaying the dues, which had piled over the years to the development partners and foreign parties despite braving some difficulties.
Regarding the implementation status of the Revised Annual Development Programme (RADP), he said that it would be less this year because the interim government after taking office following the August 5 uprising scrutinized many projects, had cut their allocations, checked misuse of funds which led to a bit slow implementation trend.
Citing implementation of mega projects like Payra Port, Karnaphuli Tunnel and Bus Rapid Transit (BRT), he said that those projects were undertaken during the previous regime without considering the actual outcomes in the long term.
Planning Commission officials said that the fresh ADP for the next fiscal year is Tk 14,000 crore or 6.48 percent higher than the revised ADP for the current fiscal year (FY25). The original ADP size for the current fiscal year (FY25) was Tk 2,65,000 crore which later came down to Tk 2,16,000 crore in the revised ADP.
The new ADP has been framed considering sustainable environment-friendly development including attaining higher growth, increasing per capita income, poverty alleviation, boosting employment generation, putting priority on attaining the SDGs. Besides, sectors like agriculture and agro-based industries, education, health and ICT, transport, power and energy, and ensuring region-based balanced development were given priority in the fresh ADP.
Apart from the highest allocation recipient sector of transport and communication with receiving Tk 58,973.39 crore, the power and energy sector received the 2nd highest allocation of Tk 32,392.26 crore (14.08%), followed by education sector with Tk 28,557.43 crore (12.42%), housing and community facilities sector with Tk 22,776.40 crore (9.90%) and health sector with Tk 18,148.14 crore (7.89%). These five sectors in total received 70 percent of the overall allocation.
Among the top 10 ministries and divisions, the Local Government Division received the highest allocation of Tk 36,099 crore followed by Road Transport and Highways Division Tk 32,329.57 crore, Power Division Tk 20,283.62 crore, Secondary and Higher Education Division with Tk 13,625.03 crore, Science and Technology Ministry Tk 12,154.53 crore, Health Services Division Tk 11,617.17 crore, Ministry of Primary and Mass Education with Tk 11,398.16 crore, Shipping Ministry Tk 9,387.62 crore, Water Resources Ministry Tk 8,489.86 crore and Ministry of Railways received Tk 7,714.99 crore.
The new ADP accommodated a total of 1,171 projects including 993 investment projects, 19 feasibility study projects, 99 technical assistant projects and 60 projects from the concerned organization’s own fund. A total of 79 projects were kept in the proposed ADP for implementation under the Public-Private-Partnership (PPP) initiative while 228 projects for implementation under the Bangladesh Climate Change Trust Fund.
In the fresh ADP, some 258 projects were kept for completion including 212 investment projects, 11 feasibility study projects, 18 technical assistant projects, and 17 projects from the concerned organization’s own fund. Secretaries concerned and Planning Commission members were present at the meeting.
