Big development budget taken up to recover from fragile economy: Khosru on Tk3 lakh crore ADP
NEC approved an ADP of Tk3,00,000 crore for the fiscal year 2026-27, marking a 30.43% increase over the previous fiscal year's original outlay
Finance and Planning Minister Amir Khosru Mahmud Chowdhury today (18 May) said a bold Tk3,00,000 crore development budget for fiscal year 2026-27 has been taken up as this investment is essential to pull Bangladesh out of its current financial stagnation.
"Ambition is required for development. Growth and employment are not possible without investment. That is why a large development budget has been adopted, and the government has faith that its implementation is possible," Khosru said following a National Economic Council (NEC) meeting in the capital's Sher-e-Bangla Nagar.
Explaining the rationale behind adopting a large-scale Annual Development Programme (ADP), the minister said, "Just as you need to pour water into a tubewell to increase pressure when the water level drops, a large investment is required to break out of a fragile economy."
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He emphasised that without this investment, it is impossible to turn the economy around.
The minister expressed optimism that through the government's firm leadership, prompt decision-making, and professionalism, Bangladesh will become a major investment destination in the future.
Earlier today, the NEC approved an ADP of Tk3,00,000 crore for the fiscal year 2026-27, marking a 30.43% increase over the previous fiscal year's original outlay.
The approval came during the NEC meeting chaired by Prime Minister Tarique Rahman.
Out of the total allocation, Tk1,90,000 crore, representing 63.33%, will be financed from state funds, while the remaining Tk1,10,000 crore, or 36.67%, will be sourced from foreign loans and grants.
Regarding this, Khosru stated that multiple measures have been taken to ensure transparency and accountability in project implementation.
He mentioned that specific criteria will be set for appointing project directors and appointments will only be made if those criteria are met. Accountability will be determined if a project is not completed within the stipulated timeframe. Dashboards will be launched in every ministry, where project progress will be monitored regularly.
The minister further informed that around 1,300 projects currently held by the government are being reviewed. Projects that are unnecessary, ineffective, or corrupted will be canceled. Decisions regarding partially completed projects will be made after considering their effectiveness. New projects must be finished within the designated timeframe, and there will be no opportunity for time extensions.
Regarding allocations to the social sector in the ADP, he said significant allocations have already been set for the education and health sectors. At the same time, block allocations have been kept to introduce new projects in place of the old ones being scrapped. Priority is being given to 'value for money', return on investment, and employment generation in every project.
Responding to a question about revenue collection, he acknowledged that Bangladesh's tax-to-GDP ratio is still low. However, initiatives have been taken to expand the tax network through the NBR's reform programme.
He said revenue would be increased by including new taxpayers, and the benefits of this would reach the people.
In reply to a question regarding implementation capacity in the health and education sectors, the minister said investment will be increased in human resource development, particularly in technical education.
He announced that new technical education institutions will be established to create a skilled workforce, and international-standard certification and accreditation will be ensured.
