The Ministry of Finance has earmarked Tk 1.17 trillion, or 39 per cent of the proposed Tk 3.0-trillion Annual Development Programme (ADP), for the next fiscal year, as block and special allocations across various sectors.
The remaining Tk 1.83 trillion, or 61 per cent of the ADP, is set to be allocated to ongoing projects under different ministries and divisions, according to sources at the Ministry of Planning.
Officials said the Finance Division on Tuesday sent the final ministry-wise expenditure ceilings for ADP allocations for the next fiscal year to the Programming Division of the Planning Commission.
The allocations will be finalised after distribution among projects before being placed at a meeting of the National Economic Council (NEC) for approval.
A review shows that more than Tk 1.07 trillion of the proposed allocation has been kept as block allocation to facilitate approval of new projects. In addition, Tk 97.98 billion has been set aside to meet special needs of local government bodies.
Around 80 per cent of the proposed allocations for several ministries and divisions -- including the Medical Education and Family Welfare Division, Health Services Division, and the Ministry of Primary and Mass Education -- has been kept as block allocation.
Experts and economists say several ministries and divisions often fail to utilise even their project-specific allocations, raising concerns that block allocations may remain underutilised and merely inflate the size of the ADP.
The Local Government Division has proposed the highest allocation in the proposed ADP at Tk 362.28 billion, reflecting continued priority on local infrastructure and service delivery.
It is followed by the Road Transport and Highways Division with Tk 310.65 billion, underscoring strong emphasis on transport connectivity.
The Health Services Division ranks third with Tk 268.08 billion, while Tk 213.48 billion has been proposed for the Ministry of Primary and Mass Education.
The Secondary and Higher Education Division has been allocated Tk 208.35 billion, indicating sustained focus on human capital development.
In the energy sector, the Power Division has been earmarked Tk 192.86 billion, while the Science and Technology Division will receive Tk 173.16 billion. The shipping sector has received the lowest allocation among the listed divisions at Tk 109.69 billion.
Overall, the allocation pattern highlights continued priority on infrastructure, energy and social sectors.
In terms of block allocation, the Health Services Division tops the list with Tk 208.0 billion, accounting for 77.59 per cent of its total allocation, followed by the Ministry of Primary and Mass Education with Tk 162.99 billion.
Secondary and Higher Education has received Tk 115.0 billion, representing 55.19 per cent of its total allocation, while the Medical Education and Family Welfare Division shows the highest reliance on block allocation at Tk 68.0 billion, or 80.52 per cent.
In other key sectors, the Technical and Madrasha Education Division has received Tk 30.79 billion in block allocation, more than half of its proposed allocation, while agriculture shows a relatively lower share at Tk 17.0 billion, or 25.99 per cent.
Economist Dr Mustafa K Mujeri, former director general of the Bangladesh Institute of Development Studies (BIDS), said several ministries -- particularly in health and education -- are unable to utilise even their project-based allocations effectively.
"In this context, it is questionable what role block allocations would play for such ministries," he said, raising concerns over their efficiency and absorption capacity.
"Utilisation of block allocations depends on approval of new projects, which is very difficult," he added,
warning that such allocations may only serve to expand the size of the ADP.
Former Planning Division secretary Md Mamun Al Rashid also criticised the practice, saying block allocations are not earmarked for specific projects and may lead to inefficient spending.
"When there is no defined project or sector, such funds often end up being spent on unnecessary areas later," he said, adding that large block allocations create scope for misuse and wastage of public resources.
Sources said the ADP size for the current fiscal year was initially set at Tk 2.3 trillion but later revised to Tk 2.0 trillion.
The proposed ADP for the next fiscal year stands at Tk 3.0 trillion, with Tk 1.9 trillion expected from domestic sources and Tk 1.1 trillion from external financing.
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