Highlights:
- Next ADP likely to be 50% higher than current fiscal year
- Allocation proposed to be Tk3 lakh crore
- Of the fund, Tk1.10 lakh crore to be from foreign sources
- NEC final approval scheduled for 18 May
Nine months into the current fiscal year, Bangladesh has managed to implement only 36% of its Annual Development Programme (ADP). Yet, the government has moved to raise the development budget by another 50% next year, highlighting a widening gap between ambition and execution.
The Planning Commission yesterday gave preliminary approval to a Tk3 lakh crore ADP for FY2026-27, marking a Tk70,000 crore, or 30%, increase from the original ADP for the current fiscal year.
The contrast becomes sharper when compared with the revised ADP. In January, the government slashed the current year’s ADP by Tk30,000 crore, a 13% cut, after ministries and agencies failed to utilise allocated funds at the expected pace.
Now, despite struggling to fully spend the downsized Tk2 lakh crore programme, the government is preparing an even larger development outlay.
The figures raise questions about the country’s public investment strategy, particularly whether implementing agencies have the capacity to deliver such an expanded pipeline of projects amid persistent bottlenecks, procurement delays and weak project readiness.
According to the proposed allocation, the transport and communication sector will receive the highest outlay at Tk50,092 crore, accounting for 16.7% of the total ADP. Education follows with Tk47,591 crore, while health has been allocated Tk35,535 crore.
Power and energy will receive Tk32,691 crore, and housing Tk20,361 crore. Together, these five sectors account for nearly 62% of the entire proposed ADP.
The National Economic Council (NEC), chaired by the prime minister, is scheduled to give final approval to the ADP on 18 May.
Planning Commission officials said the large allocations for education and health reflect a strong focus on human resource development, creating a skilled workforce, and strengthening social protection.
Of the total allocation of Tk3 lakh crore, Tk1.90 lakh crore – or 63.33% – will come from government financing, while the remaining Tk1.10 lakh crore will be sourced from foreign loans and grants.
Including Tk8,924 crore in self-financed spending by autonomous bodies and corporations, the overall development budget size will exceed Tk3.08 lakh crore.
In terms of ministry-wise allocations, the Local Government Division received the highest amount, with Tk33,735 crore proposed for the division, followed by the Roads and Highways Division with an allocation of Tk30,741 crore.
The Health Services Division, Secondary and Higher Education Division, Ministry of Primary and Mass Education, and the Power Division are also among the major recipients.
According to a working paper prepared by the Programming Division of the Planning Commission, the new ADP prioritises employment generation, economic recovery, women’s empowerment, climate-resilient development, agriculture and food security, the digital economy, and preparation for the fourth industrial revolution.
It also recommended prioritising projects related to green and climate-resilient development, the National Adaptation Plan, the Sustainable Development Goals, and the Delta Plan.
The proposed ADP includes recommendations for 1,121 projects, including 949 investment projects, 107 technical assistance projects, and 43 self-financed projects of autonomous bodies.
In addition, the inter-ministerial programming committee has recommended the inclusion of 1,277 unapproved new projects, of which 1,060 are dependent on foreign financing.
A total of 80 public-private partnership-based projects have also been proposed for inclusion in the new ADP.
Besides, separate development assistance allocations have also been proposed for the Local Government Division, the Ministry of Chittagong Hill Tracts Affairs, and special area development initiatives.
Source: https://www.tbsnews.net/economy/tk3-lakh-crore-adp-gets-preliminary-approval-final-decision-18-may-1434406
