ADP expands despite calls for fiscal restraint
Despite ongoing economic challenges and growing calls for fiscal prudence, the government has significantly expanded the Annual Development Programme (ADP) for the next fiscal year (2026-27), increasing both the number of projects and the overall scope of development activities.
The proposed ADP includes 3,164 projects, up from 2,510 in the current fiscal year, representing an addition of 654 projects.
The expansion has raised concerns among economists and policy analysts about resource allocation, implementation capacity and the efficient use of public funds at a time when the economy remains under pressure.
The National Economic Council (NEC) has approved an allocation of Tk 3 lakh crore for the programme.
Economists have urged the government to exercise greater spending discipline as Bangladesh continues to grapple with inflationary pressures, external financing challenges and global economic uncertainties.
They warn that the ongoing conflict involving Iran and its potential impact on global energy markets could further complicate the economic outlook.
Despite these concerns, the government has opted to broaden the development programme, arguing that continued investment is necessary to meet public expectations and sustain development momentum across key sectors.
Although authorities had previously pledged stricter project evaluation and prioritisation, stakeholders say the sharp increase in the number of projects reflects efforts to accommodate development commitments and growing public demands.
Zahid Hussain, former lead economist at the World Bank’s Dhaka office, said the government should scale back development expenditure and focus on priority projects in order to ease pressure on public finances and preserve macroeconomic stability.
Former Planning Secretary Mamun-al-Rashid noted that an increase in projects inevitably requires additional project directors, greater administrative capacity, stronger monitoring mechanisms and higher financial allocations.
“The key issue is not merely the number of projects, but whether they are selected on the basis of public welfare needs or political considerations,” he said.
According to Planning Commission sources, the proposed ADP contains 1,153 projects with approved allocations. These include 976 investment projects, 23 feasibility studies, 109 technical assistance projects and 45 self-financed projects.
The ADP book also lists 1,282 unapproved projects in its green pages without allocations. Of these, 1,064 are proposed for implementation through government funding, 179 through foreign loans and 40 through the own resources of autonomous bodies and state-owned corporations.
In addition, the programme includes 80 Public-Private Partnership (PPP) projects and 148 projects financed by the Climate Change Trust Fund.
Another notable feature of the proposed ADP is the inclusion of 392 ongoing projects that are scheduled to expire this month. These comprise 344 investment projects, nine feasibility studies, 18 technical assistance projects and 21 projects of autonomous organisations.
While these projects were originally expected to be completed within the current fiscal year, implementation delays have resulted in 32 being carried forward into the next ADP. Furthermore, 77 development projects are still awaiting approval for foreign financing.
Among the major projects included in the programme are the Chattogram Power Distribution System Development Project, the Rooppur Nuclear Power Plant, the Matarbari 1,200 MW Coal-Fired Power Project, the Programme for Agricultural and Rural Transformation for Nutrition, Entrepreneurship and Resilience, and the Jamuna River Sustainable Management Project-1.
Projects proposed for foreign assistance include the Matarbari 2,400 MW Ultra-Super Critical Coal Power Project (Phase II), the Second Jamuna Bridge, railway electrification between Narayanganj, Dhaka and Joydevpur, the Dhaka-Comilla Railway Cord Line, MRT Line-5 (Southern Route) and MRT Line-2.
Key PPP initiatives include the Matarbari Land-Based LNG Terminal, Dhaka Outer Ring Road, Kamalapur Multimodal Transport Hub, Bay Terminal, Dhaka East-West Elevated Expressway and the proposed Second Padma Multipurpose Bridge connecting Paturia and Goalanda.
While the expanded ADP reflects the government’s ambitious development agenda, economists caution that effective implementation, stronger project selection criteria and prudent management of public resources will be critical to ensuring that development objectives are achieved without placing additional strain on the economy.
