Tk2.3 lakh crore allocated for development in 2025-26 budget

For the 2025-26 fiscal year, the government has planned a development budget of Tk2.3 lakh crore. The revised Annual Development Program (ADP) for the current fiscal year stands at Tk2.16 lakh crore. As usual, 70 percent of the development budget is allocated to the five major sectors, with the transport and communication sector alone receiving 25 percent of the total allocation.

To cut unnecessary expenses, Tk35,000 crore has been deducted from the original ADP for the current fiscal year, bringing this year’s ADP to Tk2.3 lakh crore. Of this amount, Tk1.44 lakh crore will come from government funds, while Tk86,000 crore will be sourced from foreign loans. A total of Tk2.15 lakh crore has been allocated to various projects under the ADP.

As usual, the transport and communication sector receives the highest priority in the budget allocation, with Tk58,973 crore allocated, representing 25.64 percent of the total budget. The power and energy sector gets the second highest allocation of Tk32,392 crore, or 14.08 percent. Education is allocated Tk28,557 crore, accounting for 12.42 percent, while housing and community facilities receive Tk22,776 crore (9.90 percent). The health sector is allocated Tk18,148 crore, which is 7.89 percent of the total budget.

Other sectors include local government and rural development with an allocation of Tk13,472 crore, agriculture with Tk10,795 crore, environment, climate change, and water resources with Tk10,641 crore, industry and economic services with Tk5,038 crore, science and information technology with Tk3,894 crore, religion, culture, and entertainment with Tk3,675 crore, public order and safety with Tk2,777 crore, social protection with Tk2,018 crore, general public services with Tk1,877 crore, and defense with Tk475 crore.

It is also important to note that the original ADP allocation for the current fiscal year was Tk2.65 lakh crore, which was later reduced to Tk2.16 lakh crore in the revised ADP. Although the development budget for the next fiscal year is Tk35,000 crore less than this original ADP, it is Tk14,000 crore higher than the revised ADP. For the current fiscal year, ministries and divisions had requested Tk2.54 lakh crore. The original ADP included Tk1.65 lakh crore from government funding and Tk1 lakh crore as the foreign loan target. For the next fiscal year, government funding in the development program has decreased to Tk1.44 lakh crore, and the foreign loan target has been reduced by Tk14,000 crore to Tk86,000 crore.