The government’s approval of a record Tk 3 lakh crore Annual Development Programme (ADP) for FY2026-27, including an unprecedented Tk 1.70 lakh crore in block allocations, has sparked concerns among economists and policy analysts over fiscal transparency and accountability.
Experts warn that the unusually large volume of unspecified spending provisions could weaken budget oversight and undermine fiscal discipline.
The scale of the block allocation marks a significant departure from previous years. In the current fiscal year, block allocations stood at Tk 10,771 crore, while the figure was Tk 11,517 crore in FY2024-25. Notably, the entire Tk 1.70 lakh crore provision in the upcoming ADP is expected to be financed from domestic resources without foreign assistance.
Economists say the sharp increase is difficult to justify.
Professor Dr Selim Raihan of the University of Dhaka and Executive Director of the South Asian Network on Economic Modeling (SANEM) described the move as “highly unusual” and cautioned that it could weaken public oversight.
“Block allocations are generally used when project details are yet to be finalised,” he said. “However, when such a large portion of the ADP remains unspecified, concerns naturally arise regarding transparency, efficiency and accountability in public expenditure.”
He stressed the need for greater disclosure regarding the allocation, monitoring and evaluation of these funds, warning that inadequate oversight could result in inefficiency, waste and misuse of public resources.
Block Allocations Spread Across Sectors
According to the ADP approved by the National Economic Council (NEC), block allocations have been incorporated across most major sectors.
The health sector has received Tk 23,577 crore in block allocation out of a total allocation of Tk 35,530 crore. In education, Tk 26,862 crore has been kept as block allocation against a sectoral allocation of Tk 47,591 crore.
The housing and community facilities sector includes Tk 1,027 crore in block funds out of Tk 20,361 crore, while science and ICT has Tk 924 crore in block allocation against Tk 3,676 crore. The local government and rural development sector has received Tk 701 crore in block allocation within a total allocation of Tk 13,819 crore.
Transport and communication, the largest spending sector, has been allocated Tk 50,092 crore, of which Tk 1,676 crore has been earmarked as block allocation. Within the sector, the Road Transport and Highways Division alone accounts for Tk 13,902 crore in block funds against a programme size of Tk 30,164 crore.
Apart from sectoral allocations, Tk 37,750 crore has been earmarked under special development and social support programmes, while Tk 3,985 crore has been allocated for general development assistance.
Planning Commission officials said the funds would be utilised strictly through project-based spending. Ministries and divisions will be able to undertake projects under the block allocations, with limited flexibility for expenditures such as training and official travel within approved project frameworks.
Focus on Completing Ongoing Mega Projects
The new ADP places greater emphasis on completing ongoing mega projects rather than launching new ones.
Priority has been given to major initiatives such as the Rooppur Nuclear Power Plant, metro rail expansion projects and the Matarbari Deep Sea Port. The government has approved the necessary funding to accelerate implementation and bring these projects into operation as quickly as possible.
At the same time, allocations for health, education, agriculture and social safety net programmes have been increased to help mitigate the impact of inflation and improve public service delivery. Maintaining agricultural subsidies remains a key policy priority.
To address delays in project implementation, the NEC has instructed that 283 projects scheduled for completion by June this year must be completed within the stipulated timeframe, without any extension.
Token Allocations to Keep Projects Alive
The ADP also contains a number of token allocations designed to prevent projects from being dropped.
The “Tottho Apa (Second Phase)” project, aimed at promoting women’s empowerment through information and communication technology, has been allocated only Tk 1 for FY2026-27, compared with Tk 99 crore in the current fiscal year’s budget.
With an approved cost of Tk 661 crore, the project is scheduled to conclude this fiscal year. Officials said such nominal allocations are often provided to keep projects formally active, as projects without budgetary provisions risk being removed from the development programme.
A total of 54 projects have reportedly received token allocations of just Tk 1 lakh for the same purpose.
While the government views block allocations as a mechanism to maintain flexibility in development financing, analysts argue that their growing use without adequate safeguards could weaken budget discipline and reduce the effectiveness of public investment.