Govt prioritises education, power, transport in FY25 ADP

The government has greenlit substantial funding for 10 key projects in different sectors – including education, power, transport and healthcare – in the upcoming fiscal 2024-2025 to propel infrastructure development and economic growth.

With an allocation totalling Tk51,975.47 crore, equivalent to approximately 20% of the proposed Annual Development Programme (ADP) for FY25, these projects have been earmarked to receive a significant financial boost.

The proposed ADP is set to be approved during a National Economic Council (NEC) meeting chaired by Prime Minister Sheikh Hasina today.

Topping the list of projects with biggest funding is the Fourth Primary Education Development Program (PEDP4) project, which is set to receive Tk11,055.97 crore.

Following it is the Construction of Rooppur Nuclear Power Plant, securing Tk10,502.90 crore. Additionally, the Matarbari 2x600 MW Ultra Super Critical Coal Fired Power Plant Project has been allocated Tk6,005.45 crore.

Infrastructure projects also feature prominently in the development plan, with allocations for initiatives such as the Dhaka-Ashulia Elevated Expressway, Dhaka Mass Rapid Transit Development Project (Line-1), and the Padma Bridge Rail Link.

Moreover, investments in essential utilities like the Power Grid Network Strengthening Project and the Dhaka Power System Expansion and Strengthening Project highlight the government’s commitment to ensuring robust and reliable energy infrastructure.

The government’s ambitious agenda also extends to healthcare, with the establishment of a 500-bed hospital and ancillary buildings in strategic locations across the country, further bolstering the healthcare infrastructure and access to quality medical services.

Adequate allocations are being provided to ensure the completion of 289 projects, including 10 major projects, in FY25. Despite some challenges, efforts are underway to ensure timely completion, aligning with the prime minister’s directives, said officials concerned.

According to sources at the Planning Commission, sufficient allocations are being provided to expedite project completion, reflecting the government’s commitment to efficient project execution and national development.

The government has outlined a Tk265,000 crore ADP for FY25, with the highest allocation of Tk70,687.76 crore (26.67% of the total) designated for the transport and communication sector.

A Planning Commission official told the Daily Sun that of this amount, Tk165,000 crore will be sourced locally, while Tk100,000 crore will come from foreign sources. Additionally, an allocation of Tk13,286.19 crore from autonomous bodies brings the overall ADP size to Tk278,286.19 crore.

The ADP includes 1,223 new projects, including 919 funded by the government, 257 projects supported by foreign funds, and 47 projects financed by autonomous bodies and corporations. There will a total 1,337 projects in the next ADP.

The education sector is also slated to receive a 5.48% increase in ADP allocation for FY25. This boost aims to mitigate the impact of COVID-19 by addressing dropout rates, enhancing education quality, and improving infrastructure and higher education.

Furthermore, the health sector is poised for growth with a proposed allocation of Tk20,682.88 crore, reflecting a 27.64% increase from the current fiscal year.

Notably, the transport and communication sector tops the allocation list with Tk70,687.76 crore, followed by the power and energy sector with Tk40,751.86 crore. Priority is given to projects aimed at enhancing transmission and distribution networks, as well as to initiatives such as the Rooppur Nuclear Power Plant and Matarbari coal power projects.

In FY24, the government initially planned to allocate Tk263,000 crore for development works but later reduced the budget by Tk18,000 crore to Tk245,000 crore in revised annual development programme (RADP).

Dr Zahid Hussain, former lead economist at the World Bank’s Dhaka office, told the Daily Sun that despite significant budget allocations in the ADP each year, there is a recurring shortfall in expenditure. He underscored the challenges faced by crucial sectors in effectively utilising their allocated funds, leading to increased project costs and delays in completion.

Dr Hussain emphasised the missed opportunity of reallocating funds from previously unfinished projects to subsequent ADPs to ensure their timely completion. He also expressed disappointment at the fact that such reallocations are not commonly implemented.

He stressed the critical importance of improving spending capacity and reducing corruption-related irregularities to achieve more favourable outcomes.