NEC Clears Tk 2.3 Lakh Crore ADP for FY26

The National Economic Council (NEC) on Sunday approved an Annual Development Programme (ADP) worth Tk 2,30,000 crore for the fiscal year 2025–26, prioritising the transport and communication sector. NEC Chairperson and Chief Adviser Professor Dr Muhammad Yunus presided over the meeting held at the NEC conference room in Sher-e-Bangla Nagar, with relevant advisers in attendance.

Of the total ADP allocation, Tk 1,44,000 crore will be sourced from the government’s own funds, while Tk 86,000 crore will come from project loans and grants. Including an additional Tk 8,599.71 crore from implementing agencies’ own funds, the total ADP size stands at Tk 2,38,599.71 crore.

Following the meeting, Planning Adviser Dr Wahiduddin Mahmud said the ADP forms part of the upcoming FY26 budget, to be announced on June 2 by Finance Adviser Dr Salehuddin Ahmed. He noted that the new budget aims to restore macroeconomic stability, curb inflation, ensure fiscal discipline, and avoid excessive reliance on domestic or foreign borrowing.

Emphasising fiscal prudence, Dr Mahmud said the government will seek to contain the budget deficit within 4% of GDP and gradually reduce subsidy dependence, while avoiding populist expenditures. He clarified that no new mega or long-term projects have been included in the ADP, except for the Japan-funded Matarbari Deep Sea Port.

Implementation of the current fiscal year's Revised ADP (RADP) is expected to be lower due to project reviews and fund reallocations following the August 5 uprising. Dr Mahmud also criticised previous regimes for initiating large-scale projects like Payra Port and the Karnaphuli Tunnel without adequate long-term planning.

According to Planning Commission data, the new ADP is 6.48% or Tk 14,000 crore higher than the revised ADP for FY25. The original ADP for FY25 was Tk 2,65,000 crore, later revised down to Tk 2,16,000 crore.

The ADP for FY26 focuses on environmentally sustainable development, poverty reduction, employment generation, and regional balance, while aligning with SDG targets. Key sectors receiving the largest allocations include transport and communication (Tk 58,973.39 crore), power and energy (Tk 32,392.26 crore), education (Tk 28,557.43 crore), housing and community facilities (Tk 22,776.40 crore), and health (Tk 18,148.14 crore)—together accounting for 70% of the total allocation.

Among ministries and divisions, the Local Government Division received the highest allocation (Tk 36,099 crore), followed by Road Transport and Highways, Power, Secondary and Higher Education, and Health Services.

The ADP includes 1,171 projects: 993 investment projects, 19 feasibility studies, 99 technical assistance projects, and 60 funded by implementing agencies. Additionally, 79 projects are designated for implementation under public-private partnerships and 228 under the Bangladesh Climate Change Trust Fund. A total of 258 projects are slated for completion in FY26.

Secretaries and Planning Commission members were also present at the NEC meeting.