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The government is set to propose a Tk 2,65,000 crore Annual Development Plan (ADP) for FY2024-25 on Thursday, which is just 0.76 per cent or Tk 2,000 crore higher than the current fiscal year’s ADP.
The original budget for the upcoming ADP was Tk 2,63,000 crore, reflecting an 8.16 per cent increase from the Revised ADP (RADP) of Tk 2,45,000 crore for the outgoing fiscal year (FY2023-24).
For FY25, the transport and communications, and power and energy sectors are given the highest priority, with 1,223 projects recommended for inclusion, according to planning ministry sources.
The ADP budget is set to be approved at the National Economic Council (NEC) meeting, chaired by Prime Minister Sheikh Hasina, on Thursday.
The ADP has been formulated with the goals of achieving higher growth, reducing poverty, improving the standard of living, addressing health and safety issues including the Covid-19 situation, building a Digital Bangladesh, and making Bangladesh a developed country by 2041.
According to officials, government funding will account for Tk 1,65,000 crore or 62.26 per cent of the ADP allocation. The target for foreign loans and grants is set at Tk 1,00,000 crore or 37.74 per cent.
In the RADP for the FY24, the amount of foreign loans was Tk 83,500 crore. Therefore, the amount of foreign loans in the ADP is increasing by Tk 16,500 crore.
The new ADP includes a total allocation of Tk 2,58,671.32 crore for projects under 57 ministries and divisions, covering 15 sectors. This includes Tk 1,64,000 crore from the government and Tk 94,671.32 crore in project loans and grants.
Additionally, Tk 9,958 crore is allocated for 10 development assistance sectors. Projects funded by the self-financing of autonomous bodies or corporations are proposed to receive Tk 13,286 crore.
Including self-financed projects, the total proposed ADP budget for FY25 stands at Tk 2,78,286 crore.
Similar to previous years, the planned ADP has taken into account the recent uncertainties in the global economy.
The Planning Commission stated that the ADP has been formulated to ensure the optimal use of limited domestic resources while mitigating the impact of global incidents, aiming to maintain the continuity of achieving higher growth.
Power and transport sectors prioritised
The planned ADP has given the highest priority to the transport and communications, and power and energy sectors. The total allocation for the transport and communications sector is Tk 70,687.76 crore, which is 28.88 per cent of the total ADP.
The second-highest allocation is for the power and energy sector at Tk 40,751 crore. The education sector is allocated Tk 31,528 crore, while the health sector is proposed to receive Tk 20,682 crore.
The general public services sector may receive Tk 2,00,133 crore, the defence sector Tk 710 crore, the public order and safety sector Tk 3,308 crore, and the industrial and economic services sector Tk 6,492 crore.
The agriculture sector is allocated Tk 13,220 crore, the local government and rural development sector Tk 17,986 crore, the environment, climate change, and water resources sector Tk 11,089 crore, the housing and community amenities sector Tk 24,682 crore, the religion, culture, and entertainment sector Tk 3,491 crore, the science and technology sector Tk 4,786 crore, and the social protection sector Tk 3,304 crore.
1,223 projects recommended to include
After reviewing 1,894 new unapproved projects from various ministries and divisions, 1,223 projects have been recommended for inclusion in the ADP for FY25.
These new unapproved projects will receive ADP funding once they are approved by the appropriate authorities or if additional funds are required for ongoing projects.
To this end, the proposed ADP for FY25 will have a block allocation of Tk 16,872.14 crore under various sectors for different ministries and divisions.
Allocations for autonomous bodies, corporations
The proposed ADP for the next fiscal year includes 79 projects to be implemented entirely with the own funds of autonomous bodies or corporations.
Additionally, 102 projects will be co-funded by the government, project assistance, and the corporations' own funds.
A total allocation of Tk 13,286 crore has been proposed for these projects.
Current economic context
In light of the current global economic context, priority has been given to projects related to food security, agriculture, agro-based industries, the power and energy sector, skill enhancement of the workforce, poverty reduction, and rehabilitation from natural disasters such as cyclones, tidal surges, floods, and heavy rains.
To maintain macroeconomic stability, the proposed ADP has focused on creating employment opportunities, improving communication infrastructure, increasing power and energy supply, human resource development, maintaining self-sufficiency in food, agricultural development and mechanisation, ensuring healthcare and health education for all, strengthening local government, empowering women, crime control, establishing good governance, rural infrastructure development, sanitation and safe water supply, providing quality education (primary, secondary, and vocational), and expanding and developing information and communication technology programmes.
