The Revised Annual Development Programme (RADP) for the fiscal year 2024-25 has been set at Tk216,000 crore, reflecting an 11.83% reduction from the previous year’s allocation.
The National Executive Committee (NEC), chaired by the chief adviser, approved the revised budget on Monday (3 March).
The government spent Tk196,111 crore, or 80% of the Tk245,000 crore RADP allocation in the last fiscal year.
Compared to the original Annual Development Programme (ADP) for the current fiscal year, the RADP has been slashed by Tk49,000 crore, a reduction of 18.49%.
Government funding has been trimmed by Tk30,000 crore (18%), while foreign assistance has decreased by Tk19,000 crore (19%).
Consequently, the revised RADP now allocates Tk135,000 crore from government funds and Tk81,000 crore from external sources.
The original ADP had stood at Tk265,000 crore, with Tk165,000 crore from domestic resources and Tk100,000 crore from foreign assistance.
The RADP is also Tk18,000 crore lower than last fiscal year’s ADP, representing a 6.84% decline.
Government funding has dropped by Tk7,500 crore (4.44%), while foreign assistance has shrunk by Tk10,500 crore (11.17%).
Project delays and economic factors behind the cut
Officials at the planning commission noted that this year’s demand was only Tk191,113 crore, but the RADP size was expanded by Tk26,000 crore through block allocations to accelerate project approvals and enhance spending.
Previously, ADP revisions were made within a range of Tk500-600 crore.
The decline in demand has been attributed to contractors withdrawing from projects due to the political upheaval during July and August, as well as the change in government, which necessitated fresh tenders for contractor appointments.
Furthermore, the departure of numerous project directors has stalled implementation, despite new appointments.
The sharp increase in construction material costs and the depreciation of the taka against the dollar have also hindered progress, prompting ministries and departments to lower their budgetary demands out of concern that funds would remain unutilised.
Sector-wise budget adjustments
The RADP allocation has been restructured, with transport, power, and energy witnessing reductions, while education has received an increased share.
The transport and communication sector, despite receiving the highest allocation of Tk48,253 crore (22.34% of ADP), saw a decline from 28.87% in the previous year’s RADP.
The power and energy sector experienced a sharp cut, dropping to 14.77% from 34.24% last year.
Conversely, allocations have risen for education, housing, local government, rural development, agriculture, health, science and technology, and industry.
The education sector, now the third-largest recipient of RADP funds, has seen its share rise to 9.42% from 3.90% in the previous fiscal year.
Meanwhile, health sector funding has marginally decreased to 3.92% from 4.18%.
Other sectoral allocations include housing and community facilities at 9.10%, local government and rural development at 7.85%, agriculture at 4.46%, industry and economic services at 2.06%, and science and technology at 2%.
