The government is set to slash the development budget by Tk 30,000 crore in the current fiscal year due to slow implementation of development projects.
The revised Annual Development Programme (ADP) for FY2025–26 is being set at Tk 2 lakh crore, down from the original allocation of Tk 2.30 lakh crore.
The Budget Wing-1 of the Finance Division instructed the Planning Commission last week to take necessary steps to finalize the revised ADP and allocate funds based on financing sources.
According to the directive, government funding in local currency will amount to Tk 1.28 lakh crore, while foreign-funded loans and grants will total Tk 72,000 crore.
The Finance Division also asked the Planning Commission to send the final revised ADP to the division “at the earliest.”
The instructions further state that ministries and divisions with lower project implementation performance must face cuts in their allocations, while resources will be redirected to high-priority projects. Ministries that experience reduced foreign assistance must also adjust their allocations from the government’s own funds.
Less important or slow-moving projects will be dropped or curtailed, while essential and near-completion projects will receive priority.
From 2–5 November, the Planning Commission held multiple review meetings to assess foreign-aided projects and determine allocations for loans and grants. Based on those assessments, the revised development budget has now been finalized.
For the first time in history, the government aims to complete the revised ADP by December. Officials say the goal is to finalize the development budget structure ahead of the upcoming national election so that project implementation does not lose momentum during the election year.
The original ADP for FY2025–26 allocated Tk 1.44 lakh crore from domestic sources and Tk 86,000 crore from foreign assistance.
In the current ADP, the transport and communications sector received the highest allocation at Tk 58,973 crore — 25.64% of the total. Other major allocations include power and energy (Tk 32,392 crore), education (Tk 28,557 crore), housing (Tk 22,776 crore), and health (Tk 18,148 crore).
Speaking at a recent ECNEC briefing, Planning Adviser Dr. Wahiduddin Mahmud said, “Last year, project implementation slowed for various reasons. This year, those excuses will not be acceptable. We want the revised ADP finalized on time so that development activities gain momentum ahead of the election.”