Govt approves Revised ADP at Tk2 lakh crore after 13% cut

Highlights:

• Govt approves Revised ADP at Tk2 lakh crore after 13.04% cut
• Revised ADP size reduced by Tk30,000 crore from original allocation
• Transport and communication sector gets highest allocation at Tk38,509 crore
• Health sector allocation slashed by about 74% due to weak implementation

The government today (12 January) approved the Revised Annual Development Programme (RADP) for the current fiscal year at Tk2,00,000 crore after cutting allocations by 13.04 %. 

As a result, the size of the RADP for FY26 has been reduced by Tk30,000 crore compared to the original ADP of Tk2,30,000 crore.

Of the reduced amount, allocations from government funds have been cut by Tk16,000 crore (11.11 %), while foreign loans and grants have been reduced by Tk14,000 crore (16.27%).

The RADP approval came at a meeting of the National Economic Council (NEC), chaired by Chief Adviser Muhammad Yunus, in the NEC conference room in Dhaka's Sher-e-Bangla Nagar.

Planning Commission officials said the size of the Revised ADP stands at Tk2 lakh crore, down by Tk30,000 crore from government funds and foreign financing.

Government funding is being reduced from Tk1,44,000 crore to Tk1,28,000 crore (64 %), while allocations from foreign loans and grants are being cut from Tk86,000 crore to Tk72,000 crore (36 %).

Officials at the commission said the demand from ministries and divisions is also lower in the Revised ADP. 

During the revision, ministries and divisions sought allocations totalling Tk1,70,252.6 crore, of which Tk1,10,474.57 crore was requested from government funds and Tk59,778 crore from foreign loans and grants.

According to officials, the lower RADP demand is mainly due to slow implementation during the current fiscal year. 

They said many projects are progressing slowly because of the absence of project directors and delays in appointing new ones. 

The government is also reviewing several large projects, which has led to reduced allocation demands for many projects. 

Additionally, as the current year is an election year, ministries and divisions have shown relatively lower demand for allocations.

Sectors receiving highest allocations

According to Planning Commission data, the transport and communication sector has received the highest allocation in the RADP, amounting to Tk38,509 crore, or 19.25% of the total RADP. 

The power and energy sector received the second-highest allocation of Tk26,186 crore, or 13.09 %.

Other major allocations include housing and community amenities with Tk22,729.81 crore (11.36 %), education with Tk18,549.87 crore (9.27 %), and local government and rural development with Tk15,142.92 crore (7.57 %).

Health sector allocation cut by 74%

The health sector has seen a sharp reduction in allocations in the Revised ADP for FY26. Due to weak implementation capacity, this sector has experienced the highest cut – around 74%. 

Education has also faced a significant reduction, with allocations cut by 35%.

In the original ADP, the health sector had an allocation of Tk18,148 crore. Owing to poor implementation capacity, Tk13,826.52 crore has been cut, bringing the revised allocation down to Tk4,718 crore.

Similarly, the education sector had an allocation of Tk28,557 crore in the original ADP, which has been reduced by 35% in the Revised ADP.

Even the transport and communication sector, the highest recipient in the original ADP, has seen a reduction. Its original allocation was Tk 58,973 crore, which has been cut by 35% in the Revised ADP.

Meanwhile, the social protection sector has also faced a substantial cut. While Tk2,018 crore was allocated in the original ADP, the Revised ADP has reduced this by 73% to Tk545 crore.

Planning Commission sources said allocations to the power sector have been reduced by 19%, while the agriculture sector has seen a 21% cut.

In contrast, the environment, climate change and water resources sector has seen the largest increase in the Revised ADP. Allocations to this sector have increased by around 20 %. In the original ADP, this sector received Tk10,641 crore.

Ministries and divisions with highest allocations

Among the ministries and divisions, the Local Government Division has received the highest allocation in the RADP, amounting to Tk37,534 crore, or 18.77 % of the total RADP. 

Its allocation is 4% lower than in the original ADP.

The Roads Transport and Highways Division has received the second-highest allocation of Tk19,949.61 crore (9.97%), although its allocation has been reduced by 38% compared to the original ADP.

The Power Division ranks third, with an allocation of Tk14,896 crore (7.45 %), reflecting a 27 % reduction from the original ADP.

The Ministry of Science and Technology has received Tk12,029.50 crore (6%), followed by the Ministry of Water Resources with Tk10,532 crore, the Ministry of Primary and Mass Education with Tk 8,054 crore, and the Secondary and Higher Education Division with Tk6,190 crore.

Block allocation for special development

A total of Tk30,159.55 crore has been allocated under development assistance for special needs. 

In addition, 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, bringing the total special allocation to Tk3,730 crore.

Planning Commission sources said Tk8,935.53 crore has been allocated for projects implemented by autonomous bodies and corporations through their own financing. Including these self-financed projects, the total size of the RADP stands at Tk208,935.53 crore.

Number of projects

The Revised ADP includes a total of 1,330 projects. Of these, 1,108 are investment projects, 35 are feasibility studies, 121 are technical assistance projects and 66 are self-financed projects.

Planning Commission officials said the Revised ADP includes 664 new unapproved projects for implementation with government financing, 157 new unapproved projects aimed at facilitating foreign financing and 35 projects to be implemented by autonomous bodies or corporations through their own financing.

A total of 286 projects have been earmarked for completion under the RADP.