Bangladesh reduces annual development budget by 7.89% for FY22

Bangladesh recently reduced the annual development budget by 7.89 per cent to Tk 2.07 trillion, with cuts in foreign assistance by Tk 175 billion. The National Economic Council (NEC) approved the revised annual development programme (RADP) for this fiscal. The original ADP size for fiscal 2021-22 was Tk 2.25 trillion. Prime Minister Sheikh Hasina presided over the NEC meeting.

Many foreign-aided projects reportedly lost momentum due to lax execution.

NEC also approved a Tk 96.13-billion RADP outlay for autonomous and semi-autonomous public bodies from the current Tk 114.69-billion allocations in the ADP.

All government ministries and agencies executed 30.21 per cent of the ADP during the first seven months (July 2021 to January 2022) of the current fiscal, which is nearly 2 percentage points higher than the last fiscal's rate, according to Bangla media reports.

In the revised RADP, 1,770 development projects have been kept with inclusions. In the original ADP, the total number of projects was 1,534.