United News of Bangladesh

Planning Adviser Wahiduddin Mahmud on Sunday said that the upcoming national budget (FY25-26) will focus on restoring economic stability, curbing inflation, ensuring discipline in budget management, and making public finance sustainable. “The main strategy of this budget is to avoid falling into a debt trap — whether local or foreign — and ensure that loan repayments and development or operational expenditures do not exert additional pressure on the economy,” he said. Wahiduddin made the remarks while briefing reporters after a meeting of the National Economic Council (NEC). He acknowledged that the government is trying to break free from a vicious cycle of poor fiscal management seen in the past. While revenue collection cannot be increased overnight, the government will work to contain expenditures and limit the budget deficit to within four percent of GDP. The planning adviser said that due to ongoing inflationary pressures, the interim government cannot immediately reduce subsidies across all sectors. However, he noted that the new budget will be a responsible one, with no populist expenditures aimed at short-term public appeasement that could lead to long-term liabilities. He also said that no new mega or long-term development projects have been included in the upcoming Annual Development Programme (ADP), with the exception of the Matarbari Deep Sea Port project funded by Japan. Despite some financial constraints, Dr. Wahiduddin added that the government is continuing to repay longstanding dues to development partners and foreign contractors. NEC approves Tk 230,000 crore ADP for FY 25-26 Regarding the implementation of the Revised Annual Development Programme (RADP) for the current fiscal year, he noted that progress has been slower. This is due to the interim government’s post-August 5 scrutiny of ongoing projects, which resulted in reduced allocations and efforts to prevent fund misuse. He criticised several mega projects such as Payra Port, Karnaphuli Tunnel, and the Bus Rapid Transit (BRT) system, saying these were launched during the previous Awami League government without proper long-term assessment. ADP Size and Sectoral Priorities According to Planning Commission officials, the size of the new ADP for FY26 stands at Tk 2,30,000 crore — an increase of Tk 14,000 crore or 6.48 percent over the revised ADP for FY25, which was slashed from the original Tk 2,65,000 crore to Tk 2,16,000 crore. The new ADP emphasises sustainable, environmentally-friendly development with goals that include higher economic growth, increased per capita income, poverty reduction, job creation, and progress toward the Sustainable Development Goals (SDGs). Priority has been given to sectors such as agriculture and agro-industries, education, health, ICT, transport, power and energy, and region-based balanced development. Among the sectors, transport and communication received the highest allocation with Tk 58,973.39 crore, followed by power and energy with Tk 32,392.26 crore (14.08%), education with Tk 28,557.43 crore (12.42%), housing and community facilities with Tk 22,776.40 crore (9.90%), and health with Tk 18,148.14 crore (7.89%). These five sectors account for 70 percent of the total allocation. Finance Adviser to discuss NBR reforms with officials Tuesday Top Allocated Ministries and Divisions The Local Government Division received the highest allocation among ministries and divisions with Tk 36,099 crore. It was followed by: Road Transport and Highways Division: Tk 32,329.57 crore Power Division: Tk 20,283.62 crore Secondary and Higher Education Division: Tk 13,625.03 crore Ministry of Science and Technology: Tk 12,154.53 crore Health Services Division: Tk 11,617.17 crore Ministry of Primary and Mass Education: Tk 11,398.16 crore Shipping Ministry: Tk 9,387.62 crore Water Resources Ministry: Tk 8,489.86 crore Ministry of Railways: Tk 7,714.99 crore Projects under New ADP The new ADP includes 1,171 projects, comprising: 993 investment projects 19 feasibility study projects 99 technical assistance projects 60 projects financed from the concerned organization’s own funds Additionally, 79 projects will be implemented under the Public-Private Partnership (PPP) model and 228 under the Bangladesh Climate Change Trust Fund. A total of 258 projects have been earmarked for completion during the fiscal year, including: 212 investment projects 11 feasibility studies 18 technical assistance projects 17 organisation-financed projects

Planning Adviser Wahiduddin Mahmud on Wednesday said he has instructed the secretary of the Implementation, Monitoring and Evaluation Department (IMED) under the Ministry of Planning to visit the Matarbari Road project site to investigate allegations of corruption and irregularities. Speaking to reporters after the regular meeting of the Executive Committee of the National Economic Council (ECNEC) at the NEC conference room, Mahmud referred to recent media reports that highlighted unusually high costs associated with the construction of a road in the Matarbari area—reportedly the most expensive in the country’s history on a per-kilometre basis. Defending the cost, he explained that much of the road passes through uneven terrain, requiring the construction of numerous bridges and culverts. “More than half of the road comprises bridges and culverts, which naturally increased the cost. So, the expense is not as excessive as it might seem,” he said. He added that a high-powered committee will soon be formed to oversee the project and ensure proper monitoring. The planning adviser also mentioned that an audit of the Matarbari power plant project, which cost Tk 6,571 crore, remains incomplete as the former project director is absconding. “We are unable to get necessary answers because the project director is on the run,” he said. Mahmud further noted that although the Matarbari power plant has a generation capacity of 1,200 MW, the Power Development Board (PDB) is currently drawing only 185 MW from it. Prof Yunus welcomes investment proposals from UAE in various sectors “It’s unfortunate that the plant’s full capacity is not being utilised,” he said, adding that coal needs to be imported twice a week to keep the plant operational. He also revealed that low-quality coal imported from Indonesia has been sent to Bangkok for testing, but those responsible have yet to share the results. In a related development, the government has already formed a committee to investigate possible irregularities in the construction of embankments in the Sunamganj and Satkhira regions. The 27.2-kilometre Matarbari link road, designed to connect the under-construction deep seaport in Maheshkhali with Cox’s Bazar, has drawn national attention due to its staggering cost of Tk 12,942 crore. That translates to approximately Tk 4.76 billion per kilometre, making it the most expensive road project in Bangladesh’s history. Primarily funded by the Japan International Cooperation Agency (JICA), the project features a two-lane road for most of its length, a four-lane segment near the port, 14 bridges, 45 culverts, and a railway overpass. Originally slated for completion by 2026, the project deadline has now been pushed to 2029 due to delays and escalating costs. According to the Roads and Highways Department (RHD), the high cost is largely due to challenging soil conditions in the coastal region and the stringent construction standards imposed by Japanese consultants and contractors. While the Matarbari link road is considered a crucial infrastructure project intended to boost cargo handling and ease pressure on the Chattogram Port, its rising cost and delays have sparked public concern over governance and financial oversight in major national development efforts.

Planning Adviser Dr Wahiduddin Mahmud on Sunday said he is confused whether Teesta water mega plan would be a good project without any help from India. “The water that comes through Teesta… without help from India what will happen,” he said while responding to a question during briefing reporters regarding the outcome of the regular ECNEC meeting. He said that there were some surface level talks in the ECNEC meeting regarding the Teesta mega project proposed to be done by China. Chief Adviser Professor Muhammad Yunus recently had a visit in China where the discussion of the construction of Teesta mega project featured. The adviser said that the water that cones through the river Teesta has to be utlised fully. In this connection, he mentioned that there should be a reservoir to store the water. But till now no final plan has been made for this purpose. BNP backs reform efforts, says Salahuddin “A surface level plan was presented from Chinese side some years back, but this cannot be said a project,” he said. The adviser said that in principle the interim government is still at that stage till now. “Actually, can we make a project here?  Can it be a good project with the current water flow in the river?” he questioned. But he confirmed that China has agreed in principle to take up a project here. “There should be a feasibility study first, and that has not been done,” Mahmud added. He also said that there are blue print type papers for this, but there is no actual plan for this project.

Planning Adviser Dr Wahiduddin Mahmud on Monday acknowledged that the level of extortion in the country has not significantly changed compared to the previous Awami League regime. “Corruption itself is an economy,” he said while briefing reporters at the NEC conference room on the outcome of the Ecnec meeting. In this regard, the Adviser mentioned that if there is a large number of archways being built or a huge number of people being transported by bus, it also creates a flow of money. “Money also circulates in the politics of patronage and tender politics. Those activities have, I do not know, surely been reduced.” Govt prioritising quality over quantity in development spending: Planning Adviser He said that the wastage associated with evil politics temporarily created a flow of money in the current economy. “But that does not mean that these practices need to be reintroduced again.” The Planning Adviser said that economic activities in rural areas need to be further reactivated if employment generation is to be ensured. “Generally, there is a scarcity of employment (in the country),” he added.