Govt cuts development budget by Tk 30,000cr

Business Desk :

The government has decided to slash this year’s development budget as slow project implementation continues to be a major challenge. The revised Annual Development Programme (RADP) for the current fiscal year has been set at Tk 200,000 crore, down from the original Tk 230,000 crore a reduction of Tk 30,000 crore.

Last Tuesday, the Finance Division’s Budget Wing–1 directed the Planning Commission to prepare the revised ADP for FY 2025–26. According to the directive, Tk 128,000 crore of the RADP will come from government funds, while Tk 72,000 crore will come from foreign loans and grants.
The government has instructed ministries with declining foreign-aided expenditures to reduce their GoB allocations.

Ministries and divisions showing slow project progress will also face cuts, with funds being redirected to more urgent and high-priority projects. Less important projects are to be trimmed, while projects nearing completion will get priority in funding.

Earlier this month (2–5 November), the Planning Commission held review meetings on foreign-funded projects. Based on these assessments, the revised budget size was finalized. For the first time, the government aims to complete the RADP approval by December, ahead of the upcoming national election, to ensure that development work does not slow down during the election period.

In the original ADP, the transport and communication sector received the highest allocation at Tk 58,973 crore (25.64% of the total budget), followed by power and energy (Tk 32,392 crore), education (Tk 28,557 crore), housing (Tk 22,776 crore), and health (Tk 18,148 crore).

Speaking at a recent ECNEC briefing, Planning Adviser Dr. Wahiduddin Mahmud said:
“Last year, for various reasons, many projects slowed down. This year, that excuse will not be acceptable. Ahead of the election, we want the RADP finalized on time so development activities can gain momentum.”