REJAUL KARIM BYRON and AHSAN HABIB

The government may allocate Tk 83,557 crore for development works in the education and health sectors in the fiscal year 2026-27, accounting for more than one-fourth of the proposed Annual Development Programme (ADP).

The Planning Division placed the proposal yesterday at a meeting to finalise the ADP for FY27, chaired by Finance Minister Amir Khosru Mahmud Chowdhury.

Allocation and implementation of ADP in the two major sectors were almost stagnant at low levels in recent years.

In line with the BNP’s election manifesto, the government intends to gradually raise spending in both sectors to 5 percent of GDP each.

For the upcoming fiscal year, the combined allocation for education and health is nearly double the original budget allocation for the current fiscal year and about four times the revised budget.

In the current fiscal year, the combined allocation for health and education stood at Tk 45,822 crore, which was later revised down to Tk 21,873 crore.

According to the Planning Division’s proposal, the total ADP for FY27 is set to rise to Tk 3 lakh crore, up 50 percent from the revised ADP of Tk 2 lakh crore for the current fiscal year.

Of the total ADP allocation for FY27, the government will finance Tk 1.9 lakh crore, while Tk 1.1 lakh crore is expected to come from development partners.

The ADP will be finalised at a National Economic Council meeting on May 18, to be presided over by Prime Minister Tarique Rahman. Before that, planning and finance ministry officials will meet again on May 16 to refine the draft.

At yesterday’s meeting, the Planning Division was directed to submit a proposal benchmarking allocations against GDP, according to planning ministry officials. It was also directed to assess whether projects are aligned with the BNP’s election manifesto.

This year, a structural change has been introduced by allocating a higher share of funds to new projects. For instance, Tk 1.07 lakh crore has been set aside for unapproved projects and programmes, of which Tk 17,000 crore is designated for social development covering special needs.

Planning ministry officials said the allocation covers spending on family cards, farmer cards, tree plantation, canal digging, and monthly honoraria and festival allowances for religious leaders of different faiths.

For ongoing projects, Tk 1.92 lakh crore may be allocated under the ADP. The government has also decided to review around 1,300 ongoing projects to determine whether they remain necessary, with those found redundant to be removed from the ADP.