Bangladesh’s development budget has taken a massive hit, with the Annual Development Programme (ADP) for 2024-25 slashed by Tk 49,000 crore.

Originally set at Tk 2,65,000 crore, the revised ADP (RADP) now stands at Tk 2,16,000 crore—a steep reduction that has sparked concerns over its implications for critical sectors like health and education.

While transport and infrastructure dominate the spending priorities, essential social services have been left reeling from deep cuts.

The RADP was approved on Monday at a National Economic Council (NEC) meeting in Dhaka, chaired by Chief Adviser Professor Dr Muhammad Yunus.

The cuts bite deep

The health sector bore the brunt of the reductions, with its allocation nearly halved—from Tk 11,153 crore to just Tk 5,668 crore, accounting for a mere 2.62% of the total revised budget. Education also suffered significant setbacks: primary and mass education funding fell from Tk 16,135 crore to Tk 12,764 crore, while secondary and higher education plummeted from Tk 11,388 crore to Tk 5,000 crore.

The power sector saw its allocation drop sharply from Tk 33,717 crore to Tk 21,475 crore.

Planning Adviser Wahid Uddin Mahmud justified the cuts, citing corruption as the primary culprit. “We’ve found evidence that many health and education projects were riddled with corruption, so we’ve had to shut them down,” he said after the NEC meeting.

Critics, however, argue that slashing these vital sectors risks undermining long-term human development and exacerbating existing inequalities.

In stark contrast, the Local Government Division (LGD) secured the largest share of the RADP budget —Tk 36,196 crore—outstripping the combined allocations for health and education.

The transport and communication sector emerged as the top priority, receiving Tk 48,253 crore (22.34% of the total), followed by power and energy at Tk 31,898 crore (14.77%), education at Tk 20,349 crore (9.42%), and housing and community services at Tk 19,646 crore (9.16%).

Key allocations within transport include Tk 18,624 crore for roads and highways, Tk 10,228 crore for railways, and Tk 7,154 crore for shipping.

Why it stings

The Tk 5,485 crore cut to health is particularly alarming, given the country’s ongoing struggles with inadequate healthcare infrastructure. Hospitals remain under-resourced, and patients continue to seek treatment abroad in countries like India and Singapore. Similarly, the Tk 9,759 crore reduction in education funding—Tk 3,371 crore less for primary education and Tk 6,388 crore less for secondary and higher education—threatens the future of millions of students. Power’s Tk 12,242 crore trim further dims hopes for energy security and industrial growth.

Wahiduddin Mahmud iterated that corruption forced the government’s hand, but critics remain unconvinced. Allocating just Tk 5,668 crore to health feels grossly insufficient for a sector grappling with systemic challenges. Lingering inefficiencies from last year’s ADP—where 89 projects spent zero taka and 121 projects achieved only 1% progress—cast a shadow over this year’s revised plan.

The money map

The Tk 2,16,000 crore RADP is divided into Tk 1,35,000 crore from domestic funds and Tk 81,000 crore from foreign loans, down from the original target of Tk 1,00,000 crore in overseas borrowing. The number of projects has increased from 1,326 in the original ADP to 1,437 in the RADP, including: 1,212 investment projects, 28 feasibility studies, 11 technical assistance initiatives, and 85 self-financed projects.

Planning Adviser Mahmud emphasised that the RADP prioritises per capita income growth, poverty alleviation, and employment generation.

Transport’s hefty Tk 48,253 crore allocation—such as Tk 18,624 crore for roads and Tk 10,211 crore for water resources—is aimed at enhancing connectivity and fostering economic integration.

Winners and losers

While the LGD’s Tk 36,196 crore dwarfs the combined allocations for health (Tk 5,668 crore) and education (Tk 20,349 crore), the imbalance raises serious questions about the government’s priorities. Transport and infrastructure dominate the RADP, but the severe cuts to health and education—totalling Tk 23,432 crore compared to LGD’s haul—risk leaving Bangladesh weaker, sicker, and less educated in the long run.

What’s next?

With the Tk 2,16,000 crore RADP now in motion, all eyes are on execution. Chief Adviser Yunus has stressed the need for sustainable growth, yet the meagre allocations for health (Tk 5,668 crore) and education (Tk 20,349 crore) signal potential neglect of critical human development pillars. While transport’s Tk 48,253 crore may pave roads, it remains to be seen whether it can truly pave the way to progress.

The Tk 49,000 crore cut from the original ADP underscores the government’s efforts to align spending with available resources. However, the success of this revised plan hinges on transparency, accountability, and effective implementation. With 1,437 projects now in play, the stakes are high—not just for budgets, but for Bangladesh’s future.