Government Cuts Allocations for Mega Projects, Saving 12,255 Crore Taka

In a significant move, the interim government has reduced the allocations for various major infrastructure projects initiated during the previous Awami League government's tenure. The cuts, particularly for high-budget mega projects, are expected to save the government over 12,255 crore Taka. The revised Annual Development Program (ADP) for the fiscal year 2025-26 reflects these changes, including significant cuts to several high-cost projects.

Out of the 10 mega projects listed in the revised ADP, 8 will see reduced allocations. The most significant cut has been made to the Metro Rail MRT-1 project, where funding has been slashed by 91%. The Metro Rail Line-5 (North) project will also see a 60% reduction in its budget. On average, allocations for these mega projects have been cut by about 36%. Originally, 33,952 crore Taka was allocated for these projects, but the revised ADP now stands at 21,697 crore Taka.

The Planning Commission's draft report for the revised ADP has already been finalized. The final approval is expected at the upcoming National Economic Council (NEC) meeting, which will be chaired by Chief Advisor Professor Muhammad Yunus. The revised ADP is expected to reduce the size of this year's development program by 30,000 crore Taka, bringing it down to 200,000 crore Taka.

While the cuts are expected to save money in the short term, experts have expressed concerns about the long-term effects. Professor Mostafizur Rahman, a senior fellow at the Center for Policy Dialogue (CPD), warned that cutting funds for large infrastructure projects could delay implementation, leading to higher costs in the future. The full impact of the cuts, particularly on the completion timelines of these projects, is yet to be seen.