The Planning Commission has finalised a trimmed Annual Development Programme (ADP) of Tk 2,30,000 crore for the upcoming 2024–25 fiscal year, reflecting the interim government’s strategy to curb non-essential development spending.
The draft ADP was approved at an extended meeting of the Planning Commission held on Tuesday. The meeting was chaired by Planning Adviser Dr Wahiduddin Mahmud, with the Planning Secretary and other senior officials in attendance, official sources said.
The new allocation is Tk 35,000 crore lower than the original ADP of the current fiscal year, which stood at Tk 2,65,000 crore under the previous Awami League government. However, it is Tk 14,000 crore higher than the revised ADP, which had been slashed to Tk 2,16,000 crore by the interim government earlier this year.
Of the proposed Tk 2.3 trillion allocation, Tk 1,44,000 crore will come from domestic resources, while Tk 86,000 crore is expected to be sourced from foreign development partners through loans and grants.
The draft ADP will now be placed before the National Economic Council (NEC) for final approval, with Chief Adviser Dr Muhammad Yunus scheduled to chair the meeting.
In line with its focus on infrastructure and local governance, the proposed ADP allocates the highest amounts to the Local Government Division and the Roads and Highways Division.
The Local Government Division is set to receive Tk 40,023 crore, an increase of Tk 2,047 crore from the previous year. The Roads and Highways Division will get Tk 31,828 crore, up by Tk 1,353 crore.
In contrast, allocations for health and education have seen significant reductions. The Health Services Division’s allocation has been cut to Tk 7,734 crore, down by Tk 3,419 crore from the current Tk 11,153 crore.
The Primary and Mass Education Division has seen one of the most drastic reductions, with its allocation slashed to Tk 4,016 crore from Tk 13,318 crore in the current fiscal year. The Secondary and Higher Education Division will receive Tk 10,221 crore, compared to Tk 10,887 crore previously.
Despite the austerity measures, major infrastructure sectors continue to receive substantial funding. The Power Division has been allocated Tk 20,906 crore, the Ministry of Railways Tk 10,098 crore, and the Ministry of Water Resources Tk 8,473 crore.
According to officials, ministries and divisions had submitted development proposals amounting to Tk 2.54 trillion for the upcoming year. The reduced final allocation underscores the government’s efforts to enforce fiscal discipline while limiting reliance on foreign borrowing.