Govt Cuts ADP to Tk2 Lakh Crore Amid Fiscal Pressure

The government has approved a revised Annual Development Programme (ADP) of Tk2 lakh crore for the current fiscal year, reducing the allocation by Tk30,000 crore from the original Tk2.30 lakh crore amid slow project implementation and mounting fiscal pressure.

The revised programme was approved at a meeting of the National Economic Council on Monday, chaired by Chief Adviser Muhammad Yunus at the NEC conference room in Sher-e-Bangla Nagar.

Officials of the Planning Commission said the revision represents a 13.04 percent cut from the original ADP. Of the total reduction, Tk16,000 crore has been trimmed from government funding, while Tk14,000 crore has been cut from foreign loans and grants due to sluggish disbursement in several externally financed projects.

According to officials, ministries and divisions sought lower allocations during the revision process, citing weak utilisation rates, delays in appointing project directors and ongoing reviews of major development schemes. Against total demands of around Tk1.70 lakh crore, the government approved a revised outlay of Tk2 lakh crore. Election-year caution also contributed to restrained spending proposals.

In sector-wise allocations, transport and communication retained the highest share, receiving about Tk38,500 crore, although the sector faced a notable reduction compared to the original ADP. Power and energy followed with more than Tk26,000 crore, while housing and community amenities, education, and local government and rural development remained among the major recipients.

Social sectors experienced the sharpest cuts. The health sector saw its allocation reduced by around 74 percent due to weak implementation capacity, while education faced a cut of about 35 percent. Social protection programmes were also scaled back significantly. Agriculture and power recorded moderate reductions.

In contrast, the environment, climate change and water resources sector received an allocation increase of around 20 percent in the revised programme, reflecting a growing focus on climate resilience and water management initiatives.

At the ministry level, the Local Government Division emerged as the largest recipient of revised ADP funds, followed by the Roads Transport and Highways Division and the Power Division, although all three received less than in the original programme.

Planning Commission officials said the revised ADP includes 1,330 projects, with priority given to ongoing and near-completion schemes. Of these, 286 projects are scheduled for completion within the fiscal year, while funding for new and low-priority projects has been curtailed.

Officials said the revised programme is aimed at ensuring more realistic budgeting, improving project discipline and containing fiscal risks, while keeping essential development activities on track amid economic and implementation challenges.