The interim government has reduced the current fiscal year’s development spending plan by 18.49 percent, or Tk49,000 crore, bringing it down to Tk2.16 trillion as part of its efforts to tighten control over unnecessary public expenditure.
The Revised Annual Development Programme (RADP) size was finalized with a focus on prioritizing the transport sector during a meeting of the National Economic Council (NEC), which was chaired by Chief Adviser Prof. Muhammad Yunus on Monday.
The ousted Awami League government had initially announced an ADP outlay of Tk2.65 trillion for FY25. However, the interim government adopted a slower approach to implementation after taking office in early August last year.
Allegations have surfaced that the Sheikh Hasina-led government included many projects in the ADP based on political considerations, with some of these projects having questionable cost estimates.
The austerity measures have resulted in ADP spending reaching only 22 percent during the July-January period, compared to the 27 to 30 percent range in the first seven months of previous years, as reported by Planning Adviser Dr. Wahiduddin Mahmud after the meeting.
Out of the reduced allocations, Tk30,000 crore (18 percent) has been cut from the domestic funding source, while foreign resource allocation has been reduced by Tk19,000 crore (19 percent) from the original allocation.
Now, Tk1,35,000 crore is expected to come from the Bangladesh government’s own funds, while the remaining Tk81,000 crore will be sourced from overseas project assistance (PA).
However, the total RADP outlay stands at Tk2,26,126.29 crore when considering the Tk10,126.29 crore allocated for public corporations’ own development spending.
“Despite encountering some initial hurdles, the Chief Adviser noted that the situation has improved and instructed officials to be more proactive in speeding up project executions,” the planning adviser told reporters.
Dr. Wahiduddin Mahmud further stated that efforts would be made to make the tender process more transparent in the future.
Emphasizing the importance of the health and education sectors, he stressed the need for more doctors and nurses to be appointed in the health sector, with additional training also being provided.
Among the 57 ministries and divisions, the RADP allocation for eight ministries and divisions saw a 17.28 percent increase, while the allocation for 49 ministries and divisions saw a 28.71 percent decline.
Out of the 1,437 projects with allocations in the RADP, 1,212 are investment projects, 28 are survey projects, 112 are technical assistance projects, and 85 are funded by domestic resources. Additionally, 313 projects are set for completion in the current fiscal year.
Of the top five sectors receiving the highest allocations, the transport and communication sector received the largest allocation of Tk48,253.01 crore (22.34 percent), followed by the power and energy sector with Tk31,897.61 crore (14.77percent), the education sector with Tk20,349.89 crore (9.42percent), housing and community facilities with Tk19,653.05 crore (9.09percent), and local government and rural development with Tk16,909.48 crore (7.83percent).
The top 10 ministries and divisions receiving the highest allocations are as follows: Local Government Division with Tk36,158.96 crore (16.74percent), Power Division with Tk21,475.11 crore (9.94percent), Road Transport and Highways Division with Tk18,624.61 crore (8.62percent), Primary and Mass Education with Tk12,764.01 crore (5.91percent), Science and Technology with Tk12,129.63 crore (5.62%), Ministry of Railways with Tk10,227.61 crore (4.74percent), Ministry of Water Resources with Tk10,211.72 crore (4.73percent), Ministry of Shipping with Tk7,153.70 crore (3.31percent), Bridges Division with Tk5,848.54 crore (2.71percent), and Health Services Division with Tk5,668.82 crore (2.62percent).
A total of 78 projects have been allocated for implementation under the PPP initiative in the RADP for the current fiscal year, while 232 projects have been allocated for implementation under the Climate Change Trust Fund.
