In a bold mid-year overhaul, Bangladesh’s economic planners have drastically curtailed the Annual Development Program (ADP), targeting underperforming sectors like health and education with unprecedented reductions. The total ADP envelope now stands at 208,935 crore taka, down 12.5% from 230,000 crore taka, dipping to 3.3% of GDP from 3.7%.
The health sector’s budget has been gutted by 74%, plummeting from 18,148 crore taka, while secondary and higher education sees a 55% chop from 28,557 crore taka. Officials cite sluggish expenditure, revenue shortfalls, tardy foreign aid inflows, and insufficient project pipelines as key drivers behind the decision.
First-half fiscal data revealed abysmally low execution rates in these vital areas, leading NEC to prune allocations and redirect resources. Local government scores the top allocation of 37,534 crore taka, fueling social security, anti-poverty drives, infrastructure builds, and local governance upkeep.
Comprising 1,330 projects—1,108 core investments, 35 studies, 121 technical aids, and 66 autonomous ventures—the revised plan prioritizes efficiency. Yet, the cuts raise alarms: postponed treatments for critical illnesses like cancer, kidney failure, and heart disease loom large, alongside potential surges in school dropouts.
Short-term fiscal discipline might stabilize ADP targets, but without tackling entrenched bottlenecks in social sector delivery, Bangladesh risks deepening vulnerabilities. A thorough review of systemic flaws is imperative to fortify these foundational pillars of progress.