NEC sits today on Tk2.3 lakh cr ADP; buildings get lion’s share

The National Economic Council (NEC) meets today (18 May) to consider a proposed Tk2.3 lakh crore Annual Development Programme (ADP) for the next fiscal year (FY26), with the lion's share of funds earmarked for public sector residential and nonresidential building construction.

According to Planning Commission sources, allocations for development projects are made based on economic codes. A review of the codes for 1,111 projects listed in the next ADP shows construction of various buildings secured the highest funds —Tk43,954.31 crore, or 14.42% of the total outlay.

Earlier on 6 May, the Planning Commission cleared the proposed ADP, which was 13.20% or Tk35,000 crore smaller than the current fiscal year's original ADP.

Now, the NEC, chaired by Chief Adviser Muhammad Yunus, will review the proposed ADP in today's meeting, to be held at the NEC conference room in the city's Sher-e-Bangla Nagar.

Documents submitted for the NEC meeting, highlighting the top 10 economic codes by allocation, show that building construction receives the largest share. Non-residential building construction — covering government offices, schools, and university buildings — gets Tk28,018 crore, or 11.74% of the total ADP. 

Following this, residential buildings for government officials are allocated Tk9,016.73 crore, or 3.78%. Building category, which includes other structures, such as railway or metro stations and terminal buildings, is receiving Tk6,917.88 crore or 2.9%.

By allocation size, the second highest overall is for roads and highways, with Tk27,358.67 crore or 7.28% of the total ADP.

The third highest allocation is proposed for electrical equipment, at Tk16,073.48 crore or 6.74%.

This is followed by Tk15,828.86 crore or 6.63% allocation to land acquisition for various projects. Research and development comes next, with Tk9,627.63 crore or 3.82%.

For rural road construction, the allocation is Tk9,115.82 crore or 3.78%. Bridge construction gets Tk6,505.20 crore or 2.73%, and embankment construction receives Tk6,473.63 crore or 2.71%.

What do experts say about highest allocations?

Fahmida Khatun, executive director at the Centre for Policy Dialogue (CPD), told TBS that the government has previously constructed many university buildings and hospital clinics, but was unable to provide the necessary equipment, teachers, or doctors there.

Now, when there is a need to focus on human resources, it is unclear why so much importance is being given to building construction instead. The type of buildings being constructed is also a concern, she said. 

She added that the size of this year's ADP is actually shrinking. If the focus remains only on building construction and infrastructure, the ADP allocation trend will remain the same as before. 

Allocating funds only for building construction and infrastructure development without ensuring their proper use will be pointless. If the purpose for which the buildings are constructed is not fulfilled, Fahmida said.

Alongside building construction, government services must be linked. It is essential to ensure that public services improve along with the buildings, she added.

M Masrur Reaz, chairman and CEO of Policy Exchange Bangladesh, said that the highest allocated sectors include electrical equipment, rural roads, and highways, which will support growth. But human resource development should be given more emphasis.

"Besides, due to the gas crisis, our industrial production is being disrupted, yet the gas sector has not received adequate attention," he said.

Greater focus is needed on areas that can boost employment, he added.

Masrur further said that while building construction is necessary to ensure improved government services, it is even more important to prioritise economic codes that drive economic growth and create more job opportunities.

According to Planning Commission officials, as in previous years, the proposed ADP allocates the highest share, up to 70%, to five sectors out of the 15 sectors. These sectors are - Transport and Communications, Power and Energy, Education, Housing and Community Facilities, and Health.