The finance ministry proposed a development budget of BDT 3 trillion under the Annual Development Programme (ADP) for the upcoming FY 2026–27. The proposal is expected to be placed soon at a meeting of the National Economic Council (NEC) for approval.
BDT 2.26 trillion has been allocated for development projects, while the remaining BDT 740 billion will be kept as a block allocation for development assistance and social development support to meet special needs. Planning Commission Secretary SM Shakil Akhtar shared the information with Bonik Barta.
The secretary said, “A proposal has been made to allocate BDT 3 trillion for the upcoming development budget. Of this, BDT 1.1 trillion will come from foreign loans and assistance, while the government will finance the remaining BDT 1.9 trillion. We had sought demand from various ministries and divisions, and they requested a total of BDT 2.26 trillion for development projects. The remaining BDT 740 billion has been kept as a block allocation. Since BDT 2.26 trillion will be allocated, the rest won’t be distributed arbitrarily; it has been kept as a block provision.”
Sources said the final proposal will be presented at the NEC meeting for the prime minister’s approval. The first NEC meeting of the current government is scheduled to be held on May 11 at the NEC building of the Planning Commission.
“The development budget will be presented before the prime minister at the upcoming NEC meeting. She may make some adjustments. If the allocations sought by ministries for projects are insufficient for implementation, funds may be provided from the block allocation. At times, approved allocations may also remain unspent,” SM Shakil Akhtar said.
According to source-wise financing documents of the ADP sent from the Ministry of Finance to the Planning Commission, the Finance Division and the Planning Commission have formulated an ADP of BDT 3 trillion for the 2026–27 fiscal year. A review of the proposal shows that a larger share of block allocations has been kept for various divisions under the health and education sectors, as well as the Local Government Division.
Among them, BDT 60.08 billion has been allocated for ongoing development projects under the Health Services Division, while BDT 208 billion has been proposed as block allocation. For the Health, Education and Family Welfare Division, a total of BDT 84.45 billion has been allocated, of which BDT 68 billion is set aside as block allocation. Officials concerned said the current government plans to recruit 100,000 health workers and increase investment in technical education, which will require flexible funding.
For the Ministry of Primary and Mass Education, BDT 50.48 billion has been proposed for ongoing development projects, alongside BDT 162.99 billion as block allocation. In addition, BDT 93.35 billion has been proposed for ongoing projects under the Secondary and Higher Education Division, with BDT 115 billion kept as a block allocation. The proposal also includes block allocations of BDT 75.62 billion for the Local Government Division and BDT 30.79 billion for the Technical and Madrasa Education Division for special purposes.
Commenting on the proposed development budget, Hossain Zillur Rahman, executive chairman of the Power and Participation Research Centre (PPRC) and a former adviser to the caretaker government, said, “If the block allocations size becomes too large, it may increase the tendency for discretionary spending. It can even be used to allocate funds based on political influence or preference-driven projects. It may be kept at a limited level — for flexibility. But if it becomes large, it indicates weaknesses or inadequacies in planning. In other words, it creates a tendency to plan after the fact, which should be avoided. But the current government has major plans in the health sector. As these plans haven’t yet been fully developed into projects, block allocations may be kept to allow for future implementation. But before everything else, attention should be given to strengthening the capacity of officials in the health and education ministries.”