Written by The Banking Post
A revised Annual Development Programme (ADP) of Tk 2.0 trillion for the current fiscal year will be placed before the National Economic Council (NEC) today for approval, reflecting a sharp cut amid weak implementation and mounting fiscal pressures.
The proposed Revised ADP (RADP) is 7.41 per cent lower than the original Tk 2.30 trillion allocation and marks the smallest revised development outlay in the past five years. About Tk 300 billion—roughly 13 per cent of the original ADP—is set to be slashed.
The NEC meeting will be held at the NEC auditorium in the capital, with Chief Adviser Professor Dr Muhammad Yunus in the chair.
Planning Adviser Dr Wahiduddin Mahmud said the cuts were driven by practical constraints rather than arbitrary decisions. “The reductions reflect slower spending, limited fiscal space and the need to prioritise high-impact projects,” he said, adding that timely approval of the RADP is essential to stabilise project execution and avoid a year-end spending rush.
Under the revised plan, Tk 1.28 trillion will come from domestic sources, while Tk 720 billion will be financed through external loans and grants. In the original ADP, domestic financing stood at Tk 1.44 trillion and external resources at Tk 860 billion.
As part of the revision, domestic allocations will be reduced by Tk 160 billion, while external project aid and grants will fall by Tk 140 billion.
Data show the revised ADP stood at Tk 2.1 trillion in FY22, up from Tk 1.98 trillion a year earlier, and remained above Tk 2.0 trillion in subsequent years. The proposed RADP for the current year therefore represents the lowest revised development budget in five years.
Officials attribute the contraction mainly to poor fund utilisation by ministries and divisions, revenue shortfalls and constraints in foreign financing. According to the Implementation Monitoring and Evaluation Division (IMED), ministries and divisions spent only Tk 264 billion—about 11.5 per cent of the total ADP—in the first five months of the fiscal year, the lowest rate in a decade.
After reviewing implementation trends, revenue performance and foreign-aid disbursement prospects, the Finance Division formally revised the spending ceiling. The Planning Commission, in consultation with the Economic Relations Division, then finalised project-wise allocations, prioritising ongoing and near-completion projects while trimming funds for slow-moving schemes.
Reviewing individual projects revealed sharp cost overruns and delays, the planning adviser said. “In some cases, project costs have increased fourfold and timelines have tripled. This slow execution forced us to reconsider allocations and trim the budget,” he added.
