Bangladesh raises ADP spending by 30pc for FY27

Bangladesh raises ADP spending by 30pc for FY27
NEC Chairman and Prime Minister Tarique Rahman presided over the maiden meeting of NEC under the incumbent government held at the NEC Conference Room in Dhaka's Sher-e-Bangla Nagar on Monday. Photo: Prime Minister's Office

Staff reporter

Published: 2026-05-18 16:58:04

Updated on: 2026-05-18 17:04:00

The National Economic Council (NEC) in Bangladesh has approved the Annual Development Programme (ADP) for the 2026-27 fiscal year with an outlay of Tk3 lakh crore, marking a 30 per cent increase over the previous fiscal year.

The approval came at the maiden NEC meeting of the incumbent government held at the NEC Conference Room at Sher-e-Bangla Nagar in Dhaka on Monday. NEC Chairman and Prime Minister Tarique Rahman presided over the meeting, which was attended by ministers, state ministers and senior government officials.

After the meeting, Finance and Planning Minister Amir Khasru Mahmud Chowdhury briefed journalists, while Adviser to the Prime Minister on Finance and Planning Dr Rashed Al Mahmud Titumir, State Minister for Planning Zonayed Abdur Rahim Saki and Planning Secretary SM Shakil Akhter were also present at the briefing.

According to the Planning Ministry, the FY27 ADP has been designed with a reform-oriented and inclusive development vision, focusing on sustainable economic growth, balanced regional development and administrative modernisation.

Of the total outlay, Tk1.90 lakh crore will come from government financing, while Tk1.10 lakh crore will be sourced from foreign loans and grants tied to development projects. Officials said the FY27 ADP is significantly higher than the initial plan of Tk2.38 lakh crore framed at the beginning of the current fiscal year.

Planning Commission officials further noted that if self-financed projects of autonomous bodies and corporations are included, the total size would stand at Tk3,08,924.83 crore, of which Tk1,98,923.93 crore would come from domestic and own sources and Tk1,10,000.90 crore from external financing.

The new ADP incorporates 1,277 newly recommended projects submitted by various ministries and divisions. In addition, 80 projects have been proposed under Public–Private Partnership (PPP) arrangements, while 148 projects will be implemented under the Bangladesh Climate Change Trust Fund.

Officials said the growing number of PPP and climate-related projects reflects increased emphasis on private sector participation, climate adaptation and sustainable development financing. A significant number of new projects are also dependent on foreign funding, which, they said, demonstrates continued confidence of international development partners in Bangladesh’s development trajectory.

Among the 15 sectors under the ADP, the transport and communication sector received the highest allocation of Tk50,092.53 crore, accounting for 16.70 per cent of the total. The education sector followed with Tk47,591.12 crore (15.86 per cent), while the health sector received Tk35,535.50 crore (11.84 per cent).

The power and energy sector was allocated Tk32,691.54 crore (10.90 per cent), and the housing and community facilities sector received Tk20,361.72 crore (6.79 per cent). Together, these five sectors account for more than 62 per cent of the total allocation.

Among ministries and divisions, the Local Government Division received the highest allocation of Tk33,735.10 crore (11.25 per cent). The Roads and Highways Division followed with Tk30,741.36 crore (10.25 per cent), while the Health Services Division received Tk26,806.26 crore.

The Secondary and Higher Education Division was allocated Tk20,835.44 crore (6.95 per cent), and the Primary and Mass Education Ministry received Tk19,440.59 crore (6.48 per cent). The Power Division was allocated Tk14,938.66 crore (4.98 per cent).

Other major allocations include the Science and Technology Ministry (Tk17,403.74 crore), Health Education and Family Welfare Division (Tk8,220.85 crore), Shipping Ministry (Tk8,206.53 crore) and Water Resources Ministry.

The ADP includes a dedicated Tk17,000 crore allocation for social development assistance programmes aimed at supporting poor and marginalised communities. In addition, Tk38,027.49 crore has been proposed under a “special development assistance” block allocation to support newly approved and ongoing projects.

Officials said the programme prioritises poverty reduction, employment generation, women’s empowerment, tourism, blue economy expansion, green growth and improved living standards through sector-based interventions.

The NEC meeting also gave policy approval to a strategic financial planning framework for the next five years, being prepared by an advisory committee under the General Economics Division (GED). The framework is aimed at guiding medium-term reforms in public investment and development planning.

The ADP is structured around five key pillars: state system reform including judicial services, administrative digitalisation and multi-year investment planning; equitable socio-economic development focusing on education, health and social protection; and economic recovery covering energy security, transport and industrialisation.

The remaining pillars emphasise region-based balanced development, particularly in northern and coastal regions including Chattogram and Mongla ports, and social harmony, cultural development, youth skill enhancement and sports.

The Planning Commission also recommended prioritising projects aligned with the Sustainable Development Goals (SDGs), National Adaptation Plan (NAP), Nationally Determined Contributions (NDC), Green Climate Resilient Development (GCRD) strategy and Delta Appraisal Framework (DAF). Priority has also been given to PPP projects, climate-resilient infrastructure and regionally balanced development initiatives.

According to the Implementation Monitoring and Evaluation Division (IMED), ADP implementation during July 2025 to March 2026 stood at 36.19 per cent, with total expenditure of Tk75,607 crore against a revised allocation of Tk2,08,936 crore for the current fiscal year.

The NEC meeting directed implementing agencies to prioritise projects scheduled for completion by June 2027 and to avoid unnecessary expenditure on expired schemes. A total of 26 projects due for completion in the current fiscal year will be carried forward to the next fiscal year.

Officials said the increased size of the ADP compared to the revised current fiscal year budget reflects stronger investment capacity and improved implementation performance in public sector development programmes.

The meeting marked an important step in shaping Bangladesh’s medium-term development strategy, with a strong emphasis on reform, inclusivity, climate resilience and balanced regional growth.