Staff Reporter
Rtnn: 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 approved a Tk2.65 lakh crore proposed Annual Development Programme (ADP) for the upcoming fiscal year 2024-25, with most priority once again being given to transport infrastructure projects.

The ADP was approved today (16 May) at the National Economic Council (NEC) meeting chaired by Prime Minister Sheikh Hasina.

This marks an 8.16% increase compared to the ADP of FY24, confirmed Planning Minister Major General (retd) Abdus Salam.

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 allocation of government funds in the proposed ADP has decreased by Tk4,000 crore or 2.37% compared to the current fiscal year's ADP. 

However, when compared to the current fiscal year's revised ADP, the allocation of government funds has increased by 2.17%. 

Meanwhile, the amount of foreign aid in the proposed ADP has increased by 6.38% and 19.76% compared to the current fiscal year's ADP and revised ADP.

According to Planning Commission sources, the demand of the ministries and departments for government funds for the next financial year was Tk185,391 crore and the demand of foreign loans and grants was Tk91,011 crore.

However, the government has decided on the allocation while considering the economic situation of the country. Presently, the country's economic situation prioritises foreign financing over government funds due to various reasons, including revenue collection, inflation, and the dollar crisis.

Sectors with 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 Metrorail MRT Line-5 and the Padma Rail Link Project in the proposed ADP.

Additionally, 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.

Furthermore, 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.

Following these, the local government and rural development sector received 6.79% of the proposed ADP allocation, the agriculture sector received 4.99%, and the environment and climate sector received 4.18%. The industry and economic services received 2.45%, while the information technology sector received 1.81%.

According to the planning minister, the government has prioritised the transportation, power and energy, housing, and community sectors in recent years, resulting in increased allocations to these areas. However, in the proposed Annual Development Programme, allocations to these sectors have been reduced compared to the current financial year. Additionally, allocations for the local government, science, and information technology sectors have also decreased.

For instance, in the current financial year, the allocation for the transport and communication sector was Tk75,944.62 crore, whereas in the new ADP, it has decreased to Tk70,687.76 crore. Similarly, the allocation for the power and energy sector has decreased from Tk44,393 crore to Tk40,751.86 crore in the proposed ADP.

Meanwhile, 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.

In the education sector, the allocation in the new ADP is Tk 31,528.6 crore, compared to Tk 29,889 crore in the current fiscal year's ADP. Similarly, an additional allocation of Tk 4,478.84 crore has been made in the health sector for next year's ADP compared to the current year's allocation.