DHAKA , MAY 19(V7N) – The National Economic Council (NEC) today approved an Annual Development Programme (ADP) outlay of Tk 2,30,000 crore (Tk 2.3 trillion) for the upcoming fiscal year (FY26), with the highest allocation earmarked for the transport and communication sector.

NEC Chairperson and Chief Adviser Professor Dr Muhammad Yunus presided over the meeting held at the NEC conference room in the city’s Sher-e-Bangla Nagar area. Concerned Advisers were also in attendance.

Out of the total ADP allocation of Tk 2.3 trillion for FY26, Tk 1.44 trillion will be sourced from the Government of Bangladesh's own funds, while the remaining Tk 86,000 crore will come as project loans and grants.

However, when considering an allocation of Tk 8,599.71 crore from the concerned organizations' own funds, the total ADP allocation for the next fiscal year reaches Tk 2,38,599.71 crore.

Briefing reporters after the meeting, Planning Adviser Dr Wahiduddin Mahmud stated that the approved ADP is integral to the new budget for FY26, which is scheduled to be announced by Finance Adviser Dr Salehuddin Ahmed on June 2nd.

Dr Mahmud explained that the overarching strategy of the entire budget for the next fiscal year is to restore economic stability, reduce inflation, reinstate discipline in budget management, and ensure its sustainability.

“At the same time, our target will be not to fall into the trap of loan either local or foreign side by side to ensure there is no added pressure on us in repaying loans as well as there is no added pressure on us in meeting development and operating expenditure,” he said, adding that the government would strive to break free from the "vicious cycle" that prevailed in the past.

Acknowledging that boosting revenue collection overnight is not feasible, the Planning Adviser said that despite this, the government would endeavor to keep expenditure at a manageable level while maintaining the budget deficit within four percent of GDP.

He noted that the interim government would not be able to drastically reduce subsidies across various sectors immediately, given the prevailing inflationary trends.

Dr Mahmud emphasized that in addition to restoring fiscal discipline, this budget would be a "responsible" one, avoiding short-term populist expenditures that could lead to increased liabilities in the future.

The Planning Adviser clarified that no new mega projects or long-term projects have been included in the new ADP, with the exception of the Matarbari Deep Sea Port project, which will be funded by Japan.

He stated that the government is gradually repaying outstanding dues to development partners and foreign entities, despite facing some challenges.

Regarding the implementation status of the Revised Annual Development Programme (RADP) for the current fiscal year (FY25), he anticipated a lower implementation rate this year. This is attributed to the interim government's scrutiny of numerous projects after assuming office following the August 5th uprising, which led to reduced allocations and checks on fund misuse, consequently slowing down the implementation pace.

Referring to the implementation of mega projects like the Payra Port, Karnaphuli Tunnel, and Bus Rapid Transit (BRT), he suggested that these projects were undertaken by the previous regime without adequate consideration for their long-term outcomes.

Planning Commission officials indicated that the fresh ADP for the next fiscal year is Tk 14,000 crore, or 6.48 percent, higher than the revised ADP for the current fiscal year (FY25), which stood at Tk 2,16,000 crore, down from the original ADP size of Tk 2,65,000 crore.

The new ADP has been formulated with a focus on sustainable and environment-friendly development, including achieving higher growth, increasing per capita income, poverty alleviation, boosting employment generation, and prioritizing the attainment of the Sustainable Development Goals (SDGs).

Priority sectors in the fresh ADP include agriculture and agro-based industries, education, health and ICT, transport, power and energy, and ensuring region-based balanced development.

The transport and communication sector received the highest allocation of Tk 58,973.39 crore (25.64%), followed by the power and energy sector with Tk 32,392.26 crore (14.08%), the education sector with Tk 28,557.43 crore (12.42%), the housing and community facilities sector with Tk 22,776.40 crore (9.90%), and the health sector with Tk 18,148.14 crore (7.89%). These top five sectors collectively account for 70 percent of the total ADP allocation.

Among the top 10 ministries and divisions in terms of allocation, the Local Government Division received the highest amount of Tk 36,099 crore, followed by the Road Transport and Highways Division with Tk 32,329.57 crore, the Power Division with Tk 20,283.62 crore, the Secondary and Higher Education Division with Tk 13,625.03 crore, the Science and Technology Ministry with Tk 12,154.53 crore, the Health Services Division with Tk 11,617.17 crore, the Ministry of Primary and Mass Education with Tk 11,398.16 crore, the Shipping Ministry with Tk 9,387.62 crore, the Water Resources Ministry with Tk 8,489.86 crore, and the Ministry of Railways with Tk 7,714.99 crore.

The new ADP encompasses a total of 1,171 projects, including 993 investment projects, 19 feasibility study projects, 99 technical assistance projects, and 60 projects funded from the concerned organizations' own resources.

A total of 79 projects have been proposed for implementation under the Public-Private-Partnership (PPP) initiative, while 228 projects are slated for implementation under the Bangladesh Climate Change Trust Fund.

The fresh ADP includes 258 projects targeted for completion, comprising 212 investment projects, 11 feasibility study projects, 18 technical assistance projects, and 17 projects funded by the concerned organizations themselves.

Concerned Secretaries and Planning Commission members were present at the meeting.

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