The National Economic Council (NEC) on Sunday approved a Tk 2,00,000 crore Revised Annual Development Programme (RADP) for the current fiscal year 2025–26, slashing allocations by about 13 percent amid slower implementation and a tight resource position.
The approval came at an NEC meeting held at the NEC Conference Room in Sher-e-Bangla Nagar, chaired by Chief Adviser and NEC Chairperson Prof Muhammad Yunus.
Including projects of autonomous bodies and corporations financed from their own funds, the overall size of the RADP stands at Tk2,08,935.53 crore, Planning Adviser Professor Dr Wahiduddin Mahmud told reporters after the meeting.
Compared to the original ADP of Tk2.30 lakh crore, the revised programme has been cut by Tk30,000 crore. Of this, allocations from government funds have been reduced by Tk16,000 crore, while foreign loans and grants have been cut by Tk14,000 crore.
Under the revised plan, Tk1,28,000 crore will come from domestic sources and Tk72,000 crore from foreign financing.
Officials said the revision followed past practice and reflected the country’s macroeconomic situation, availability of foreign financing and lower demand from ministries and divisions due to slow project implementation.
Several projects have progressed sluggishly because of the absence of project directors, delays in new appointments and ongoing reviews of large projects. Being an election year has also contributed to relatively lower allocation demands, they added.
“The reduced ADP does not indicate a lack of development needs, but a shortage of implementable projects,” Planning Adviser Prof Wahiduddin Mahmud told a post-meeting press briefing.
He attributed this slowdown to political uncertainty and subdued private investment, which he said, were the key obstacles to economic momentum throughout the fiscal year.
Sectoral priorities and cuts
Despite the overall reduction, transport and communication remained the highest priority sector, receiving Tk38,509 crore, or 19.25 percent of the total RADP.
It was followed by power and energy with Tk26,186 crore (13.09 percent), housing and community facilities with Tk22,729.81 crore (11.36 percent), education with Tk18,549.87 crore (9.27 percent) and local government and rural development with Tk15,142.92 crore (7.57 percent). Together, these five sectors account for about 60.5 percent of total RADP allocations.
However, several sectors have faced sharp cuts compared to the original ADP. The health sector saw the steepest reduction—around 74 percent—owing to weak implementation capacity, with its allocation falling from Tk18,148 crore to Tk4,718 crore.
Education allocations were reduced by about 35 percent, while transport and communication also saw a cut of around 35 percent from its original allocation.
Social protection allocations were reduced by 73 percent, while the power sector faced a 19 percent cut and agriculture 21 percent.
In contrast, allocations for environment, climate change and water resources increased by around 20 percent, reflecting a renewed focus on climate-related projects.
Ministry-wise allocations
On a ministry and division-wise basis, the Local Government Division received the highest allocation of Tk37,534 crore, followed by the Roads Transport and Highways Division with Tk19,949.61 crore and the Power Division with Tk14,896 crore.
Other significant allocations went to the Ministry of Science and Technology, Ministry of Water Resources, Ministry of Primary and Mass Education, Secondary and Higher Education Division, Ministry of Shipping, Bridges Division and the Ministry of Railways.
A block allocation of Tk30,159.55 crore was kept for special development assistance for special needs
Additionally, Tk3,100 crore has been allocated for five development assistance items under the Local Government Division, Tk530 crore for the Ministry of Chittagong Hill Tracts Affairs and Tk100 crore for special areas.
Projects and implementation
The revised ADP includes 1,330 projects—1,108 investment projects, 35 feasibility studies, 121 technical assistance projects and 66 self-financed projects by autonomous bodies and corporations.
A total of 286 projects are scheduled for completion by June 30, 2026. The programme also includes 170 projects funded by the Climate Change Trust Fund and 81 Public-Private Partnership (PPP) projects.
Officials said successful implementation of the revised ADP would be crucial for boosting economic activity, accelerating GDP growth, generating employment and improving education and healthcare services, while also supporting poverty alleviation and overall socio-economic development.
The meeting was attended by members of the Advisers Council, the Cabinet Secretary, the Principal Secretary to the Chief Adviser, the Bangladesh Bank Governor, members of the Planning Commission, and senior secretaries and secretaries of various ministries and divisions.