As part of its austerity measures and efforts to cut low-priority spending, the interim government has approved a Tk2.3 lakh crore Annual Development Programme (ADP) for the fiscal year 2025–26, marking a notable reduction from the current fiscal year’s original outlay.
The decision was made at a meeting of the National Economic Council (NEC) on Sunday, chaired by Chief Adviser Muhammad Yunus at the NEC conference room.
According to Planning Commission officials, the ADP reflects a strategic tightening of public expenditure, excluding numerous projects carried over from the previous administration.
The new plan is 13.20%, or Tk35,000 crore, lower than the original ADP for FY25, though 6.48%, or Tk14,000 crore, higher than the revised version.
This shift follows the political transition of August last year, which led to the fall of the Awami League government. The change disrupted many development projects, with several contractors and project directors withdrawing.
For FY26, the government’s direct funding stands at Tk1.44 lakh crore, a 12.72% decrease from the previous original allocation, but 6.66% higher than the revised estimate.
Foreign aid is projected at Tk86,000 crore—down Tk14,000 crore from the original FY25 plan, yet Tk5,000 crore above the revised figure.
The ADP will be financed with 62.62% from domestic sources and 37.39% from foreign loans and grants. Including self-financed projects by autonomous bodies and state-owned enterprises, the total development outlay rises to approximately Tk2.39 lakh crore.
The ADP includes 1,171 projects, comprising 993 investment projects, 19 feasibility studies, 99 technical assistance projects, and 60 self-financed initiatives.
Nearly 70% of total allocations are concentrated in five priority sectors: transport and communications, power and energy, education, housing and community facilities, and health.
The transport and communications sector leads with Tk58,973.4 crore, or 25.64% of the total ADP, followed by power and energy with Tk32,392.26 crore, or 14%, and education with Tk28,557.43 crore, or 12.4%. Housing and community facilities received Tk22,776 crore, while health was allocated Tk18,148 crore.
Ten ministries and divisions account for 74.40% of the total ADP.
The Local Government Division received the highest share at Tk36,098.76 crore, followed by the Road Transport and Highways Division at Tk32,329.57 crore and the Power Division at Tk20,283.62 crore.
Other key allocations include Tk13,625 crore for the Secondary and Higher Education Division, Tk12,154.53 crore for the Ministry of Science and Technology, Tk11,617.17 crore for the Health Services Division, Tk11,398.16 crore for the Ministry of Primary and Mass Education, Tk9,387.62 crore for the Ministry of Shipping, Tk8,489.86 crore for the Ministry of Water Resources, and Tk7,714.99 crore for the Ministry of Railways.
By expenditure category, the largest allocation—Tk28,018.70 crore (11.74%)—is earmarked for non-residential building construction, followed by Tk17,358.67 crore for roads and highways, Tk16,073.48 crore (6.74%) for electrical equipment procurement, and Tk15,828.86 crore (6.63%) for land acquisition.
Other significant allocations include Tk9,627.63 crore (4.04%) for research and development, Tk9,115.82 crore for rural infrastructure, Tk9,016.73 crore for residential buildings, Tk6,917.88 crore for other building types, Tk6,505 crore (2.73%) for bridges, and Tk6,473.63 crore (2.71%) for embankments.
The FY26 ADP reflects a cautious but strategic approach by the interim government amid fiscal constraints, political uncertainty, and increased demand for efficient, transparent, and accountable public investment.