Tk2.65 lakh crore ADP approved; transport sector takes lead
In the proposed ADP, the allocation from the government fund has been estimated at 62.3% of the total allocation, and foreign financing at 37.7%. This contrasts with the figures of 64.3% and 35.7% in the ADP of FY24, respectively.
The government has adopted a district-wise development plan to mend regional disparities, engaging local representatives in projects for improvement in healthcare, education and rural infrastructure, as it has approved the Tk2.65 lakh crore annual development programme (ADP) for the forthcoming fiscal 2024-25.
The outlay marks an 8.16% increase from the current ADP and expects 37.7% or Tk1 lakh crore from foreign financing, 2 percentage points more than what was projected in this year's ADP.
Endorsing the development outlay for FY25 at the National Economic Council (NEC) meeting, Prime Minister Sheikh Hasina asked the ministries and divisions to speedily complete the foreign-funded and grant projects with additional efforts.
Planning Division Senior Secretary Satyajit Karmaker, who briefed reporters after the NEC meeting at the capital's Sher-e-Bangla Nagar, said the prime minister advocated for taking district-based projects and thus entrusting the district-level officials for overseeing those projects.
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The FY25 ADP comprises a total of 1,321 projects, with the highest amount of funding allocated to education, power, and transport infrastructure projects, said the minister.
In addition, Tk13,288 crore was allocated for autonomous institutions or corporations, taking the total size of the ADP over Tk2.78 lakh crore.
Planning Minister Abdus Salam said the ADP allocation from government funds is projected to be 62.3% or Tk1.65 lakh crore of the total allocation.
The allocation in the FY24 ADP was 64.3% from government funds.
Regarding the district-wise development proposal, the planning minister said this initiative involves crafting one to five-year master plans for rural development, with input from local public representatives including members of parliament. Rural infrastructure, healthcare, communication systems, and education sectors will get priority under these plans.
"Current development efforts are focused on upazilas. However, a district-wise planning initiative has been launched to address development disparities, ensuring that every district receives attention and progress, leaving none behind," he said.
Planning Division Senior Secretary Satyajit Karmaker said that the prime minister has issued instructions related to the prompt completion of foreign loan and grant projects. She also directed the Implementation, Monitoring, and Evaluation Division (IMED) to submit progress reports on foreign-funded projects every three months to expedite their implementation.
Moreover, the prime minister has mandated that government officials or project managers be appointed to their respective positions only after they undergo specialised training, said the secretary.
Satyajit Karmaker said one of the primary causes of project implementation delays is the absence of thorough feasibility studies. In response, the prime minister has instructed the IMED to ensure that all institutions conducting feasibility studies are registered.
The secretary said the prime minister has instructed that there be supervision of ADP implementation.
The ADP implementation rate from July to April of FY24 stands at 49.26%, slightly lower than the 50.35% recorded during the corresponding period of FY23.
State Minister of Planning Shahiduzzaman Sarker said that the size of the FY25 ADP has not seen a significant increase compared to the FY24 ADP as the government is cautiously undertaking only important projects.
Sectors with the highest allocations
The transport and communication infrastructure sector has been given the highest allocation, accounting for around 26.67% of the total allocation, amounting to around Tk70,688 crore. This includes projects such as the Metro Rail MRT Line-5 and the Padma Rail Link Project in the proposed ADP.
The power and energy sector received the second-highest allocation of Tk40,752 crore or 15.38%, prioritising projects like the Rooppur Nuclear Project and the Matarbari 1,200 MW coal power project.
The education sector received the third-highest allocation of Tk31,528.60 crore or 11.90%. Around Tk24,868 crore has been allocated to the housing and community facilities sector, representing 9.38% of the total proposed ADP allocation.
The health sector has been allocated Tk20,683 crore, which accounts for 7.80% of the total allocation.
The local government and rural development sector received Tk17,986 crore or 6.79% of the proposed ADP allocation, the agriculture sector received Tk13,220 crore or 4.99%, and the environment and climate sector received Tk11,089 crore or 4.18%.
The industry and economic service sector received Tk6,492 crore or 2.45%, while the information technology sector received Tk4,787 crore or 1.81% of the total ADP allocation.
However, in the proposed ADP, allocations for transportation, power and energy, housing, and community sectors, the local government, science, and information technology sectors have been reduced compared to the current financial year.
Allocations have increased in the education, health, agriculture, environment, climate, and industrial and economic services sectors in the proposed ADP compared to the current financial year's ADP.
According to Planning Commission sources, the demand of the ministries and departments for government funds for the next financial year was Tk1,85,391 crore and the demand for foreign loans and grants was Tk91,011 crore.
However, the government has decided on the allocation while considering the economic situation of the country. Currently, the country's economic situation prioritises foreign financing over government funds due to various reasons, including revenue collection, inflation, and the dollar crisis
