Tk 3 lakh crore ADP targets growth, polls pledges

The new BNP-led government has decided to spend Tk 3.09 lakh crore on development programmes in FY2026-27, the largest single-year increase in eight years, signalling a sharp break from the austerity-driven approach of the interim administration.

The allocation for the Annual Development Programme (ADP) is up 30 percent from the current year, which Finance and Planning Minister Amir Khosru Mahmud Chowdhury said reflects a five-year strategic framework for reform and development.

The minister acknowledged the massive expansion, but said the government is betting that political legitimacy and stronger institutional capacity will improve delivery.

“We have assumed that the elected government will have greater capability and implementation efficiency,” he said after the National Economic Council approved the plan yesterday, chaired by Prime Minister Tarique Rahman.

Bangladesh spent only 36.16 percent of its ADP in the July–March period of FY26, the lowest five-year rate both in percentage and absolute terms, even after the outgoing interim government slashed the plan by 14 percent, the steepest cut in recent memory, to contain inflation and shore up weak revenues.

According to the planning ministry, of the total allocation for FY27, government financing would be Tk 1.99 lakh crore, while the rest is expected to come from project loans and grants.

TRANSPORT, EDUCATION, HEALTH LEAD

The new government is eyeing the most development in the transport and communication sectors, which has been given 16.7 percent of the total ADP fund.

Education has also been given high priority. The sector will get 15.86 percent of the total development fund, while the health sector’s allocation stands at 11.84 percent.

Allocation and implementation of the ADP in the two major sectors remained almost stagnant at low levels in recent years. The new development spending plan for the education and health sectors is nearly double the original budget allocation for FY26.

The allocation falls in line with the government’s pledges. It has set a goal of gradually raising public healthcare spending to five percent of the gross domestic product (GDP) – the total value of all final goods and services produced within a country. It also announced plans to implement massive reforms in the education sector.

The Planning Commission said preferential allocations have been provided to the education, health and agriculture sectors to support discrimination-free socio-economic development.

“Special importance has been given to expanding quality and technology-based education, building skilled human resources, ensuring modern healthcare, empowering women, expanding social security, and promoting agricultural and environment-friendly development,” said the commission in a summary presented at the meeting.

“Simultaneously, initiatives have been undertaken to tackle the Fourth Industrial Revolution, advance technology-based industrialisation and ensure sustainable development,” it added.

The energy and power sector got the fourth-highest allocation of 10.9 percent of the total ADP. Bangladesh is facing growing pressure of energy bills, recently further compounded by additional costs during fuel supply disruptions caused by the US-Israeli war on Iran. The government also announced plans to push towards renewables.

Another major allocation goes to social development assistance, under which the government has started providing Family Cards, Farmers Cards and allowances for mosque imams and other religious leaders.

In line with that plan, the government expects to spend Tk 17,000 crore on social development assistance, with Family Cards alone accounting for Tk 14,500 crore. That programme was a central election pledge.

STRATEGIC FRAMING

The BNP-led government, which has come to power after 19 years, has taken up 1,277 new projects recommended by various ministries and departments. An additional 80 projects have been proposed under public-private partnership (PPP) arrangements and 148 under the Bangladesh Climate Change Trust Fund.

The plan has been made in line with the ruling party’s election manifesto and its five pillars: social development, economic restructuring, and balanced regional development among them.

“The context is very clear — a journey towards prosperity from a fragile economy. We are moving forward with strategies for recovery, transition and reconstruction,” Khosru said.

He said it reflects a “new perspective” in Bangladesh’s development planning.

“It is not only about infrastructural development; rather, it is an integrated outline for state reform, building a discrimination-free society, a sustainable economy and establishing regional balance,” said the minister.

THE IMPLEMENTATION QUESTION

The government’s ambitions, however, face a credibility problem as the gap between announced and actual spending has become a structural feature of Bangladesh’s development planning, not an aberration.

Debapriya Bhattacharya, convenor of Citizen’s Platform for SDGs, Bangladesh, raised that concern directly at a dialogue ahead of the NEC meeting.

Khosru acknowledged the record but framed ambition as a precondition for recovery.

“Without investment, growth, employment or development is not possible,” he said. “We want every project to ensure value for money. There must be returns on investment, and employment must be generated. We do not want jobless growth. Climate issues must also be taken into consideration.”

He also said in the past there were various questions, corruption allegations and concerns over inefficiency regarding the appointment of project directors. “From now on, there will be specific criteria for appointing PDs. Those who meet the criteria will be appointed.”