Record dev outlay targets growth amid crisis
The National Economic Council (NEC) on Monday approved an ambitious Annual Development Programme (ADP) for FY2026-27, with a total outlay of Tk3 lakh crore, marking a 30.43 per cent increase over last year’s original allocation and nearly 50 per cent higher than the revised ADP.
Of the total, Tk1,90,000 crore (63.33 per cent) will be financed from domestic resources, while the remaining Tk1,10,000 crore (36.67 per cent) will come from foreign loans and grants.
The approval comes as the newly elected BNP government prepares to unveil a bold national budget amid growing economic pressures, including rising external debt, a prolonged energy crisis, and persistently high living costs.
Economists have urged caution, warning that excessive expenditure in the current fragile economic climate could exacerbate inflation and financial risks.
“Prudent fiscal management is essential to shield the economy and ease the burden on ordinary citizens,” said one expert.
Defending the large development outlay, Finance and Planning Minister Amir Khosru Mahmud Chowdhury said strong public investment is crucial to revive growth, generate employment, and overcome the current economic slowdown.
“A sizeable ADP is necessary to boost momentum and support recovery,” he stated after the NEC meeting.
However, Zahid Hussain, former lead economist at the World Bank’s Dhaka office, cautioned that implementing a large ADP in the present conditions could face significant challenges.
He noted that higher public spending does not automatically translate into increased production.
He highlighted three main concerns: the ongoing energy crisis, expenditure tied to election pledges, and the lack of meaningful institutional reforms, which could hinder effective programme delivery.
According to Planning Commission officials, the new ADP prioritises education, health, and agriculture to support inclusive socio-economic development and prepare for the demands of the Fourth Industrial Revolution.
Transport and communication projects received the largest allocation at 16.7 per cent, followed by education (15.86 per cent), health (11.84 per cent), and power and energy (10.9 per cent).
The programme also earmarks Tk17,000 crore (5.67 per cent) for initiatives supporting low-income and marginalised groups, including farmers’ cards, family cards, and allowances for staff of religious institutions.
Balanced regional development is also a key focus, with funds directed to northern districts, hill tracts, haor areas, and coastal regions to stimulate economic recovery.
The ADP includes Tk38,027.48 crore under “Special Development Assistance” and Tk17,000 crore under “Social Development Assistance.”
Accounting for self-financed projects by autonomous bodies and corporations worth Tk8,924.86 crore, the total development budget reaches Tk3,08,924.86 crore.
Officials noted that the final ADP was set by the Finance Division after reviewing an initial proposal of Tk2,26,278.62 crore submitted earlier this year.
