admin
The government is set to approve the Annual Development Programme (ADP) for the 2025–26 fiscal year today (Sunday) during a National Economic Council (NEC) meeting chaired by Chief Adviser Dr Muhammad Yunus.
According to the Planning Ministry’s final draft, the upcoming ADP proposes a notable reduction in allocations to two vital sectors—education and health—despite ongoing calls from economists and development partners for greater investment in human capital.
The education sector will see its allocation slashed by Tk 2,971 crore, from Tk 31,528 crore in the current fiscal to Tk 28,557 crore for FY26. Similarly, the health sector will receive Tk 18,148 crore, down by Tk 2,534 crore from this year’s Tk 20,682 crore allocation.
Experts have voiced concern over these cuts, warning that deprioritising the social sectors could hamper Bangladesh’s long-term development. Dr Selim Raihan, Executive Director of the South Asian Network on Economic Modelling (SANEM), called it a missed opportunity for the interim government to shift away from traditional infrastructure-focused spending in favour of education and health reform.
Bangladesh already ranks among the world’s lowest spenders on education relative to GDP, according to the World Bank. The World Health Organization recommends at least $88 in annual per capita health spending; Bangladesh spends just $58, with much of that cost borne directly by citizens.
Planning Ministry officials defended the reductions, citing constrained fiscal space, weak project execution, low revenue collection, and shrinking foreign loan inflows. They said the new ADP aims to be “realistic,” focusing on ensuring the efficient use of available resources.
The total size of the proposed FY26 ADP stands at Tk 2.3 lakh crore—down by Tk 35,000 crore from the original Tk 2.65 lakh crore in the current year. Of the total, Tk 1.44 lakh crore will be financed from domestic sources, with Tk 86,000 crore coming from foreign aid.
The ADP includes 1,143 projects: 969 investment projects, 97 technical assistance initiatives, and 19 survey projects. An additional 990 unapproved projects are also listed, many of them under public-private partnership (PPP) or climate change initiatives.
Despite the overall reduction, infrastructure continues to dominate the ADP. The transport and communication sector will receive the largest share—Tk 58,973 crore—followed by power and energy at Tk 32,392 crore. Education, despite the cut, retains the third-highest allocation, followed by housing and community services (Tk 22,776 crore) and health (Tk 18,148 crore).
Among government divisions, the Local Government Division will receive the highest allocation—Tk 36,098 crore—followed by the Roads and Highways Division (Tk 32,329 crore) and the Power Division (Tk 20,283 crore). The Secondary and Higher Education Division will get Tk 13,625 crore.
Planning Adviser Dr Wahiduddin Mahmud recently said this year’s development budget will remain modest. “We’re focusing on what is financially feasible and practically implementable,” he noted, adding that no overly ambitious plans are under consideration.
Despite financial constraints, development analysts continue to stress the need for consistent investment in human capital to ensure inclusive, long-term economic growth.
