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Bangladesh’s development spending has taken a sharp hit midway through the fiscal year, with health and education emerging as the worst casualties of a sweeping revision of the Annual Development Programme (ADP).

The National Economic Council on Monday approved a revised ADP (RADP) of Tk 2.0 trillion for FY2025-26, trimming the original allocation by Tk 300 billion, or 13.04 per cent. The decision was taken at a meeting chaired by Chief Adviser Professor Muhammad Yunus.

Planning Adviser Professor Wahiduddin Mahmud said the cut was necessary to align spending with implementation capacity and available resources.

The health sector faced the deepest squeeze. About Tk 134.29 billion was withdrawn from its original allocation—an extraordinary 73 per cent cut—reducing the budget for healthcare services from Tk 181.48 billion to Tk 47.18 billion. Both the Health Services Division and the Health Education and Family Welfare Division saw cuts exceeding 70 per cent.

As a result, major initiatives, including cancer, kidney and heart-treatment centres in eight divisional cities and 500-bed medical college hospitals in Jashore, Cox’s Bazar and Pabna, may be delayed or scaled back. Officials cited poor implementation capacity and a shortage of ready projects as the main reasons behind the drastic reduction.

Education was also hit hard. Its development allocation was cut by about 35 per cent, or nearly Tk 100 billion, bringing the revised figure to around Tk 185 billion. Secondary and higher education alone saw a 55 per cent reduction.

Explaining the sharp adjustments, Prof Mahmud said health and education were shifting from a sector-wide development approach to a more project-based system, affecting fund utilisation and allocations.

The transport and communications sector, traditionally the largest recipient of development funds, also saw a 35 per cent cut. The Airport–Kamalapur MRT Line-1 project was slashed by about 90 per cent after implementing agencies failed to submit fund demands.

Overall, allocations from government resources were reduced by Tk 160 billion, while foreign loans and grants were cut by Tk 140 billion. Officials said lower demands from ministries—driven by slow project execution, leadership gaps, project reviews and election-year caution—contributed to the smaller RADP.

Despite the cuts, transport and communications remains the largest sectoral recipient with Tk 385.09 billion, accounting for 19.25 per cent of the RADP. Power and energy follows with Tk 261.86 billion, while housing and community amenities received Tk 227.30 billion. Education stands fourth with Tk 185.50 billion.

Social protection also suffered heavily, with its allocation reduced by 73 per cent to Tk 5.45 billion. Power sector allocations were trimmed by 19 per cent and agriculture by 21 per cent.

Among ministries and divisions, the Local Government Division secured the highest allocation at Tk 375.34 billion, though this is 4 per cent lower than its original ADP share. Road Transport and Highways Division and the Power Division ranked second and third, both facing sizeable reductions.

Including self-financed projects by autonomous bodies, the total size of the revised ADP stands at Tk 2.089 trillion. The RADP covers 1,330 projects, with 286 slated for completion during the fiscal year.

Planning officials said the revised programme reflects a cautious spending stance amid implementation bottlenecks and political uncertainty, even as pressure mounts to protect critical social sectors.