The National Economic Council has approved a development program worth approximately three lakh crore taka for the upcoming 2026-27 fiscal year.
The budget was approved on Monday (May 19) at a meeting held in the National Economic Council’s conference room in Agargaon, Dhaka, presided over by Prime Minister Tarique Rahman. The meeting emphasized the government’s development plans, economic restructuring, social protection, and regionally balanced development.
According to the Planning Commission’s working paper, the total size of the development program for the upcoming fiscal year has been set at three lakh crore taka. Of this, the government’s own funding accounts for one lakh ninety thousand crore taka, and foreign loans and grants for one lakh ten thousand crore taka. Additionally, with another eight thousand nine hundred twenty-four crore taka added from projects implemented through the self-financing of autonomous bodies and corporations, the total development expenditure will exceed three lakh eight thousand nine hundred twenty-four crore taka.
The proposal presented at the meeting stated that this year’s development program has been formulated in light of a five-year reform and development strategic framework. The development plan has been divided into five main pillars: state system reform, equitable socio-economic development, reconstruction of a fragile economy, regionally balanced development, and strengthening social cohesion based on religion, society, sports, and culture.
The state system reform section emphasizes the expansion of judicial and legal services, digitalization of administrative activities, modernization of public investment management, and enhancement of law enforcement agencies’ capabilities.
Plans for launching multi-year public investment programs were also presented.
Equitable socio-economic development has been given the highest priority in this year’s development program. Significant allocations have been made for education, health, agriculture, technical education, skilled workforce development, and social security programs. Among sector-wise allocations, the transport and communication sector receives the largest share, with fifty thousand ninety-two crore taka allocated, accounting for 16.70 percent of the total development program.
Allocations for the education sector are forty-seven thousand five hundred ninety-one crore taka, health sector thirty-five thousand five hundred thirty-five crore taka, power and energy sector thirty-two thousand six hundred ninety-one crore taka, and housing and community facilities sector twenty thousand three hundred sixty-one crore taka.
Among ministry and division-wise allocations, the Local Government Division receives the largest amount, with thirty-three thousand seven hundred thirty-five crore taka allocated. The Road Transport and Highways Division is in second place with an allocation of thirty thousand seven hundred forty-one crore taka. Additionally, the Health Services Division, Secondary and Higher Education Division, Ministry of Primary and Mass Education, and Power Division have also received significant allocations.
However, the most discussed and controversial aspect of this year’s development program is the extensive expansion of block allocations. Approximately one lakh eighteen thousand two hundred eighty-eight crore taka has been set aside as block allocations for various ministries, special development assistance, and social development assistance. In contrast, direct project-based allocations amount to approximately one lakh eighty-one thousand seven hundred eleven crore taka.
According to experts, a large portion of the development budget being outside specific projects could raise questions about financial transparency and accountability.
The working paper shows that thirty-eight thousand twenty-seven crore taka has been allocated for development assistance for special needs and another seventeen thousand crore taka for social development assistance. Fifty-nine thousand two hundred ninety-six crore taka has been kept as block allocation under various ministries. Such unspecified allocations have significantly increased this time compared to the past.
Alongside allocations for health and education sectors, large block allocations have also been made. Six thousand eight crore taka has been allocated for ongoing projects in the Health Division, but a block allocation of twenty thousand eight hundred crore taka has been set aside for the same division. Similarly, while the Ministry of Primary and Mass Education has an allocation of five thousand forty-eight crore taka for ongoing projects, its block allocation is fourteen thousand three hundred ninety-two crore taka. The Technical and Madrasa Education Division also has a block allocation of three thousand seventy-nine crore taka.
Special allocations have also been made under social protection programs in this year’s development program. Of the seventeen thousand crore taka in the social development assistance sector, fourteen thousand five hundred crore taka has been allocated for the Family Card program under the Ministry of Social Welfare. One thousand four hundred crore taka has been allocated for the Farmer Card under the Ministry of Agriculture. Additionally, another one thousand one hundred crore taka has been allocated through the Ministry of Religious Affairs as honorariums for those responsible for mosques and other places of worship.
The proposed development program includes a total of one thousand one hundred twenty-one projects. Among these, there are nine hundred forty-nine investment projects, one hundred seven technical assistance projects, and forty-three projects funded by autonomous bodies’ own resources. In addition, one thousand two hundred seventy-seven new unapproved projects have been listed, which will be considered for approval gradually. Furthermore, the goal has been set to complete two hundred twenty-three projects by next June.
Special emphasis has also been placed on regionally balanced development in the development program. Northern regions, coastal areas, hilly regions, and port-centric development activities have been prioritized. Plans to develop Chittagong and Mongla as goods transportation hubs, construct coastal protection infrastructure, expand renewable energy, and establish economic zones are also included.
However, questions have already been raised about the implementation capacity of such a large development budget. The implementation rate of the development program during the nine months from July to March of the current 2025-26 fiscal year has been only 36.19 percent. The implementation rate with government’s own funding was slightly over 33 percent, and the utilization of foreign loans and grants was approximately 40 percent. In this context, concerned analysts have expressed doubt about how effectively a larger development program can be implemented.
At the meeting, directives were given to accelerate project implementation, ensure financial discipline, and swiftly complete projects that are due for completion by June 2027. Concurrently, a decision was made to limit new expenditures on overdue projects. The government hopes that by increasing administrative efficiency, human resource development, expanding social protection, and reducing regional disparities, the new development program will play a significant role in the country’s long-term development and economic recovery.
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