The National Economic Council (NEC) has approved a Tk 2.3 trillion Annual Development Programme (ADP) for the fiscal year 2025–26 (FY26), with the highest priority given to the transport and communication sector.
The meeting, chaired by NEC Chairperson and Chief Adviser Professor Dr. Muhammad Yunus, was held at the NEC Conference Room in Sher-e-Bangla Nagar, Dhaka. Key advisers and Planning Commission officials were present.
Of the total ADP outlay, Tk 1.44 trillion will come from the government’s own resources, while Tk 860 billion will be sourced from foreign project assistance, including loans and grants. An additional Tk 85.99 billion will be financed by implementing agencies from their own funds, bringing the overall development allocation to nearly Tk 2.386 trillion.
Aligned with Broader Budget Strategy
Speaking to reporters after the meeting, Planning Adviser Dr. Wahiduddin Mahmud said the ADP aligns with the broader FY26 budget strategy, which Finance Adviser Dr. Salehuddin Ahmed is expected to unveil on June 2.
He emphasized the government’s focus on restoring economic order, curbing inflation, ensuring fiscal discipline, and avoiding unsustainable borrowing.
“We want to avoid falling into a debt trap—whether domestic or external—and ensure loan repayments are manageable, while also meeting development and operational needs,” Dr. Mahmud said.
He acknowledged the difficulties of boosting revenue in the short term but said the government aims to keep the budget deficit under 4% of GDP. While there are plans to reduce subsidies, he noted that immediate cuts are unlikely due to ongoing inflationary pressures.
Dr. Mahmud assured that the interim government’s budget will be responsible and free from short-term populist spending that could result in long-term fiscal liabilities.
No New Mega Projects, Focus on Ongoing Work
The ADP for FY26 does not include any new mega projects, with the exception of the Japan-funded Matarbari Deep Sea Port. Dr. Mahmud also noted the government’s commitment to clearing longstanding dues to foreign development partners, despite current financial constraints.
He attributed the slower implementation of the current fiscal year’s Revised ADP to project reassessments and funding adjustments that followed the August 5 political transition.
The new ADP is 6.48% higher than the revised FY25 ADP, which was trimmed to Tk 2.16 trillion from an originally approved Tk 2.65 trillion.
Focus Areas and Sectoral Allocations
The FY26 ADP emphasizes environmentally sustainable and inclusive development, with goals of accelerating economic growth, reducing poverty, increasing per capita income, and creating jobs.
The transport and communication sector received the highest allocation in the ADP for FY26, with Tk 589.73 billion earmarked for infrastructure and mobility-related projects.
This was followed by the power and energy sector, which received Tk 323.92 billion, and the education sector, which was allocated Tk 285.57 billion. The housing and community facilities sector received Tk 227.76 billion, while the health sector was allotted Tk 181.48 billion.
Collectively, these five sectors account for 70 percent of the total Annual Development Programme allocation, reflecting the government’s focus on essential public services and infrastructure.
In terms of ministry and division-wise allocations, the Local Government Division received the highest share with Tk 360.99 billion, followed closely by the Road Transport and Highways Division, which was allocated Tk 323.29 billion.
The Power Division received Tk 202.83 billion, while the Secondary and Higher Education Division was allotted Tk 136.25 billion. The Ministry of Science and Technology was allocated Tk 121.54 billion.
In addition to these, significant funding was also provided to the Health Services Division, the Primary and Mass Education Ministry, the Ministry of Shipping, the Ministry of Water Resources, and the Ministry of Railways.
The ADP includes a total of 1,171 projects aimed at supporting the country’s development goals. These consist of 993 investment projects focused on infrastructure and service delivery, 99 technical assistance projects that provide capacity-building and support services, and 19 feasibility studies to explore future development initiatives. Additionally, 60 projects will be implemented with funding from the agencies’ own resources.
Additionally, 79 projects are listed under Public-Private Partnership (PPP) initiatives, while 228 are under the Bangladesh Climate Change Trust Fund.
A total of 258 projects are scheduled for completion in FY26. These include 212 investment projects, 18 technical assistance projects, 11 feasibility studies, and 17 agency-funded initiatives.