NEC approves Tk 2.30 lakh crore ADP for FY26

The National Economic Council (NEC) on Sunday approved an Annual Development Programme (ADP) outlay of Tk 2,30,000 crore for the next fiscal year (FY26), placing the highest allocation in the transport and communication sector, reports BSS.

NEC Chairperson and Chief Adviser Prof Muhammad Yunus presided over the meeting held at the NEC Conference Room in the capital's Sher-e-Bangla Nagar. Relevant advisers, secretaries, and Planning Commission members were also present.

Of the total ADP outlay, Tk 1,44,000 crore will come from the government's own resources, while Tk 86,000 crore will be sourced from project loans and grants. Additionally, considering an allocation of Tk 8,599.71 crore from various implementing agencies' own funds, the overall development allocation for FY26 stands at Tk 2,38,599.71 crore.

Focus on stability, budget discipline

Briefing reporters after the meeting, Planning Adviser Dr Wahiduddin Mahmud said the approved ADP is part of the upcoming national budget, which will be announced on June 2 by Finance Adviser Dr Salehuddin Ahmed.

Dr Mahmud said the budget strategy aims to restore macroeconomic stability, curb inflation, and ensure disciplined and sustainable budget management. He said the government is targeting to avoid falling into a debt trap—both domestic and foreign—while also working to prevent additional pressure in repaying loans or financing development and operational expenditure.

He noted that the government is committed to maintaining the budget deficit within 4% of GDP, despite challenges in boosting revenue collection. He stressed that the budget would not be irresponsible or populist, avoiding short-term spending that could lead to long-term liabilities.

Dr Mahmud also stated that no new mega projects have been included in the ADP, except for the Japan-funded Matarbari Deep Sea Port project. The interim government, after taking office following the August 5 uprising, scrutinized projects for efficiency, cut allocations, and checked fund misuse, which led to a slower implementation trend in the Revised ADP (RADP) of the current fiscal year.

Top allocations and sector priorities

The fresh ADP allocation is Tk 14,000 crore or 6.48% higher than the RADP for FY25, which had been revised down to Tk 2,16,000 crore from the original Tk 2,65,000 crore.

In the new ADP, the highest sectoral allocation went to transport and communication with Tk 58,973.39 crore. The power and energy sector followed with Tk 32,392.26 crore or 14.08% of the total. The education sector received Tk 28,557.43 crore or 12.42%, housing and community facilities got Tk 22,776.40 crore or 9.90%, and the health sector was allocated Tk 18,148.14 crore or 7.89%. These five sectors together accounted for 70% of the total ADP allocation.

Among ministries and divisions, the Local Government Division received the highest allocation of Tk 36,099 crore. It was followed by the Road Transport and Highways Division with Tk 32,329.57 crore, Power Division with Tk 20,283.62 crore, Secondary and Higher Education Division with Tk 13,625.03 crore, and the Ministry of Science and Technology with Tk 12,154.53 crore.

The Health Services Division received Tk 11,617.17 crore, while the Ministry of Primary and Mass Education got Tk 11,398.16 crore. The Shipping Ministry was allocated Tk 9,387.62 crore, the Water Resources Ministry Tk 8,489.86 crore, and the Ministry of Railways Tk 7,714.99 crore.

Project breakdown and priorities

The new ADP includes a total of 1,171 projects, comprising 993 investment projects, 19 feasibility study projects, 99 technical assistance projects, and 60 projects from the concerned organizations' own funds. Of these, 258 projects are scheduled for completion in FY26.

A total of 79 projects were included under the Public-Private Partnership (PPP) initiative, while 228 projects are set to be implemented under the Bangladesh Climate Change Trust Fund.

The Planning Commission said the ADP has been designed with a focus on sustainable, environment-friendly development aimed at boosting economic growth, raising per capita income, alleviating poverty, and generating employment. It also emphasizes regionally balanced development and support for agriculture, ICT, education, and health.

Dr Mahmud further remarked that the government continues to clear accumulated dues to development partners and foreign parties, despite some fiscal constraints.

The NEC meeting marked a pivotal step in finalizing the fiscal framework for FY26 amid the interim administration's efforts to maintain economic discipline and avoid fiscal risks.