Due to the slow pace of development project implementation, this year too the development budget is facing major cuts. The government has decided to set the revised development budget, or the Annual Development Programme (ADP), at Tk200,000 crore for the current fiscal year.

The original ADP had been set at Tk230,000 crore, meaning the RADP is being reduced by Tk30,000 crore.

Last Tuesday, Budget Wing–1 of the Finance Division instructed the Planning Commission to take necessary steps regarding the source-wise allocation of the revised ADP for FY 2025–26.

The directive set the revised development budget at Tk 200,000 crore, of which Tk 128,000 crore will come from government funds (local currency), and Tk 72,000 crore from foreign-aided project loans and grants.

The directive further stated that the final revised ADP for FY 2025–26 should be prepared and submitted to the Finance Division as soon as possible.

Ministries or divisions whose foreign-aided project expenditures will decrease must reduce their GoB allocations. Those whose project implementation progress is relatively slow will also see cuts, with funds redirected to high-priority projects.

The instruction also emphasized cutting less important projects and ensuring adequate allocations for more important ones, as well as those scheduled for completion.

Earlier, from 2–5 November, the Planning Commission held several review meetings to determine loan and grant allocations for foreign-funded projects under the revised ADP.

Based on these assessments, the size of the revised development budget was finalized. For the first time, the target has been set to finalize the RADP by December.

The main objective is to complete the budget structure and allocation process before the upcoming national election so project implementation does not slow down during the election year.

The original ADP for the current fiscal year was Tk 230,000 crore, including Tk 144,000 crore from local sources and Tk 86,000 crore in foreign assistance.

In the current ADP, the highest allocation has gone to the transport and communication sector with Tk 58,973 crore, accounting for 25.64% of the total ADP. This is followed by the power and energy sector (Tk 32,392 crore), education (Tk 28,557 crore), housing (Tk 22,776 crore), and health (Tk 18,148 crore).

At a recent ECNEC briefing, Planning Adviser Dr. Wahiduddin Mahmud said, “Last year, for various reasons, many projects slowed down. This year, that excuse will not be acceptable. Ahead of the election, we want the RADP finalized on time so development activities can gain momentum.”