Govt revises down ADP to Tk2 lakh crore

Published : Monday, 12 January, 2026 at 8:46 PM Count : 82

The government has approved the Revised Annual Development Programme (RADP) for the current fiscal year at Tk2 lakh crore, cutting Tk30,000 crore from the original ADP of Tk2.30 lakh crore as part of a broader effort to rein in spending amid slow project implementation and fiscal pressure.

The approval came at a meeting of the National Economic Council (NEC) on Monday, chaired by Chief Adviser Muhammad Yunus at the NEC conference room in Sher-e-Bangla Nagar.

Planning Commission officials said the revised programme reflects a 13.04% reduction from the original ADP. Of the total cut, Tk16,000 crore has been reduced from government funds, while Tk14,000 crore has been trimmed from foreign loans and grants, as disbursement remained sluggish in many externally financed projects.

According to officials, ministries and divisions sought significantly lower allocations during the revision process. Against total demands of about Tk1.70 lakh crore, the government approved Tk2 lakh crore, taking into account weak utilisation rates, delays in appointing project directors and ongoing reviews of several large projects.

Being an election year also contributed to relatively cautious spending requests.

Sector-wise, transport and communication retained the highest allocation in the RADP, receiving about Tk38,500 crore, despite facing a substantial cut 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 also remained among the top recipients.

However, social sectors bore the brunt of the cuts. The health sector saw the steepest reduction, with its allocation slashed by around 74% due to poor implementation capacity. Education also faced a significant cut of about 35%.

Allocations for social protection were reduced sharply as well, while agriculture and power sectors experienced moderate cuts.

In contrast, the environment, climate change and water resources sector saw an increase of around 20% in the revised programme, signalling a shift towards climate-related priorities and water management projects.

At the ministry level, the Local Government Division emerged as the largest recipient of RADP funds, followed by the Roads Transport and Highways Division and the Power Division, though all three saw lower allocations than in the original ADP.

Planning Commission sources said the revised ADP includes 1,330 projects, with priority given to ongoing and near-completion schemes. A total of 286 projects have been earmarked for completion during the fiscal year, while new and low-priority projects have seen reduced funding.

Officials said the revised programme aims to ensure more realistic budgeting, improve project discipline and contain fiscal risks, while keeping critical development activities on track amid economic and implementation challenges.

FP/MI