The Planning Commission has axed current fiscal’s Annual Development Programme (ADP) by Tk 30,000 crore to Tk 2,00,000 crore as part of the government’s austerity measures and in response to falling demand from ministries amid political uncertainty.
The health and social security, education, agriculture, power and religion sectors are the worst sufferers of the drastic cuts in development spending for the ongoing 2025-26 fiscal year.
In an extended meeting chaired by Planning Adviser Prof Wahiduddin Mahmud on Monday, the commission finalized this Revised ADP (RADP) figure, which will be approved later by the National Economic Council (NEC), the highest economic policy making body.
Local resources share in the RADP has been curtailed by Tk 16,000 crore to Tk 1.28 lakh crore and that of overseas project assistance (PA) has been downsized by Tk 14,000 crore to Tk 72,000 crore.
The commission officials said financial stress, political uncertainty and the interim government’s stringent policy stance have left most of the country’s 1,198 ongoing projects progressing at a sluggish pace. This has adversely affected overall ADP implementation and foreign fund releases.
The health sector witnessed the biggest cut of 74 percent over its Tk 18,148 crore original ADP allocation. Social security sector also experienced a drastic cut of 73 percent over 2,018 crore ADP money, reflecting belt tightening by the interim government.
The highest allocated transport sector also witnessed a 35 percent cut in its Tk 58,993 crore original resource allocation. Education sector had received Tk 28,557 crore but the allocation has now been trimmed by 35 percent.
Similarly, power sector’s Tk 32,392 crore allocation has been slashed by 19 percent, agriculture sector’s Tk 10,796 previous allocation has been curtailed by 21 percent, and religion and defence sectors saw 35 percent and 13 percent cuts in their allocations in RADP.
However, environment sector and local government and science sectors received 20 percent 12 percent and 11 percent more money in RADP respectively as part of the government’s fine tuing in development priorities in the halfway of the fiscal year.
These three sectors had received Tk 10,641 crore, Tk 13,472 crore and Tk 3,894 crore respectively in the previous ADP allocations.
Mega projects bear the brunt
A significant portion of the proposed RADP cut has been concentrated on mega infrastructure projects, where implementation delays have been most pronounced.
The steepest reduction is proposed for MRT Line-1, whose allocation has dropped by 91 percent—from Tk 8,631.43 crore in the current ADP to just Tk 801 crore in the RADP.
The Matarbari Port Development Project faces the second-largest cut, with Tk 2,983 crore proposed to be withdrawn, reducing its allocation from Tk 4,068 crore to Tk 1,085 crore—down 73 percent.
The Hazrat Shahjalal International Airport expansion project also saw a sharp reduction of 71 percent, with its allocation falling from Tk 1,039.35 crore to Tk 306.44 crore.
Other major cuts include the Bus Rapid Transit (BRT) project, where allocation has been reduced by 60 percent to Tk 168.06 crore, and MRT Line-5, which also faced a 60 percent cut to Tk 592.08 crore. MRT Line-6 saw a 24 percent reduction, while the Hatikumrul–Rangpur four-lane highway project faced a 17 percent cut. The Dhaka–Sylhet four-lane highway project saw a relatively minor cut of 3 percent.
In contrast, the Dhaka-Ashulia Elevated Expressway project was an exception as its allocation rose by 34 percent to Tk 1,134.84 in RADP, while Rooppur Nuclear Power Plant’s allocation remained unchanged at Tk 10,012 crore.
Pattern of repeated ADP cuts
Data from the Implementation Monitoring and Evaluation Division (IMED) show that sharp downward revisions of ADP allocations have become a recurring trend. In FY2024–25, the original ADP allocation of Tk 2.65 lakh crore was revised down to Tk 2.16 lakh crore, cutting Tk 49,000 crore. In FY2023–24, the ADP was reduced by Tk 20,282 crore from the original Tk 2.74 lakh crore allocation.
Economists warn that unless political stability is restored and project management capacity strengthened, repeated RADP contractions will continue to weaken development momentum and delay critical infrastructure outcomes.