Govt approves Tk2.3 lakh crore ADP for FY26

The National Economic Council (NEC) has approved a Tk2.3 lakh crore Annual Development Programme (ADP) for the upcoming fiscal year – a significant reduction from the original ADP of the current fiscal year, reflecting the interim government's austerity drive and cuts to low-priority projects.

The approved ADP represents a 13.20% or Tk35,000 crore decrease from the current fiscal year's original ADP, but a 6.48% or Tk14,000 crore increase compared to the revised ADP.

The approval came at a meeting of the NEC, chaired by Chief Adviser Muhammad Yunus, held today (18 May) at the NEC conference room in Sher-e-Bangla Nagar.

According to Planning Commission officials, the new ADP is smaller because the interim government followed its austerity policy and excluded low-priority projects inherited from the previous administration.

They noted that many development projects were disrupted following the fall of the Awami League government in August last year, as project directors and contractors left. Although work has resumed through alternative arrangements, the situation remains unstable, resulting in lower funding demands from ministries and divisions.

The government's allocation for the upcoming fiscal year's ADP is Tk1.44 lakh crore – a 12.72% decrease from the original allocation for the current fiscal year. However, compared to the revised ADP, the allocation has increased by 6.66%.

Foreign aid for the upcoming ADP has been reduced by Tk14,000 crore, down to Tk86,000 crore from the current year's original ADP. However, it is Tk5,000 crore higher than in the revised ADP.

The ADP for FY26 will be financed 62.62% from government funds and 37.39% from foreign loans and grants.

Including self-financing by autonomous bodies and corporations, the total size of the ADP stands at around Tk2.39 lakh crore.

A total of 1,171 projects with allocations have been included in the new ADP. Of these, 993 are investment projects, 19 are feasibility study projects, 99 are technical assistance projects, and 60 are self-financed.

Five sectors get 70% allocation

As in previous years, the ADP for FY26 allocates the highest share – nearly 70% – to five out of 15 sectors including transport and communications, power and energy, education, housing and community facilities, and health.

The highest allocation, Tk58,973.4 crore, has been earmarked for the transport and communications sector, accounting for 25.64% of the total ADP. The power and energy sector follows with Tk32,392.26 crore, representing 14% of the total allocation.

The education sector has received the third-highest allocation at Tk28,557.43 crore (12.4%). Housing and community facilities have been allotted Tk22,776 crore, while the health sector has received Tk18,148 crore.

Ministry and division-wise ADP Allocation for FY26

A total of 74.40% of the ADP has been allocated to 10 ministries and divisions.

The Local Government Division received the largest share, amounting to Tk36,098.76 crore, which accounts for 16.47% of the total ADP. Following this, the Road Transport and Highways Division received Tk32,329.57 crore or 14.75% of the total.

The Power Division was allocated Tk20,283.62 crore (9.25%), while the Secondary and Higher Education Division received Tk13,625 crore (6.21%), and the Ministry of Science and Technology was allocated Tk12,154.53 crore (5.54%).

The Health Services Division received Tk11,617.17 crore (5.30%), and the Ministry of Primary and Mass Education was given Tk11,398.16 crore (5.20%). Other major allocations include Tk9,387.62 crore for the Ministry of Shipping (4.28%), Tk8,489.86 crore for the Ministry of Water Resources (3.87%), and Tk7,714.99 crore for the Ministry of Railways (3.52%).

Of the total allocation, the largest share – Tk28,018.70 crore or 11.74% – has been earmarked for the construction of non-residential buildings. The second-highest allocation, Tk17,358.67 crore, has been set aside for the construction of roads and highways.

Around Tk16,073.48 crore, or 6.74% of the ADP, will be spent on the procurement of electrical equipment, while Tk15,828.86 crore (6.63%) has been allocated for land acquisition.

An allocation of Tk9,627.63 crore (4.04%) has been made for research and development, and Tk9,115.82 crore is designated for rural infrastructure development.

In addition, Tk9,016.73 crore has been allocated for the construction of residential buildings, and Tk6,917.88 crore for the construction of other types of buildings.

Furthermore, Tk6,505 crore (2.73%) has been allocated for bridge construction, while Tk6,473.63 crore (2.71%) will go toward embankment construction.