The government has outlined plans to increase capital expenditure in the medium term (2025-26 fiscal year) to drive sustained economic growth, according to an official document from the finance ministry.
Recognizing the significant impact of capital expenditure on the economy’s production level, the government aims to raise capital expenditure to 6.68% of GDP by the fiscal year 2025-26.
This target marks an increase from the estimated 6.41% of GDP for the 2024-25 fiscal year and 6.50% for the 2023-24 fiscal year.
Capital investment is allocated through either the Annual Development Program (ADP) or non-ADP capital expenditure, with a focus on enhancing infrastructure, establishing a social protection system, and addressing infrastructure constraints to boost private investment.
Efforts to enhance implementation efficiency include the introduction of the iBAS++ digital platform, empowering project directors to release government funds promptly, and aligning the size of the ADP with the objectives of the 8th Five-Year Plan.
The estimated size of the development budget, which constitutes 36.4% of the total budget, is Tk2,77,582 crore, with the ADP accounting for 94.7% of related expenses.
By prioritizing capital spending and implementing efficiency-enhancing measures, the government aims to maximize the utilization of project funds, reduce wastage, and accelerate project implementation, paving the way for sustained economic growth in the medium term.
