- Since independence, 53 budgets have been presented by 14 finance ministers or officials
- Tajuddin Ahmed presented the first budget of Bangladesh in 1972
- The ADP budget has grown exponentially from 501 crore taka in FY1972-73 to 265,000 crore taka in FY2024-25
Bangladesh’s impressive journey from a war-torn country to a rising economic power in South Asia shows its strength and dedication to growth. The Bangladesh National Budget is a crucial financial plan that outlines the government’s revenue, expenditure, and development priorities for a specific fiscal year. The 2024-2025 budget is the 53rd in the country’s history and the 25th presented by the Awami League government across its six terms.
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At the heart of this amazing change is the Annual Development Program (ADP), a key part of the national budget that has shaped the country’s economy for over 50 years. Since it began in 1972, the ADP has been the main way to carry out the government’s development plans, directing money into important areas to boost economic growth, reduce poverty, and improve the lives of its people.
As Bangladesh stands ready for its next big step forward, aiming to become an upper-middle-income country by 2031 and a developed nation by 2041, the ADP becomes even more important. The ADP for the 2024-25 financial year marks a big moment in this journey, with a huge allocation of 2.65 trillion taka (about $24.5 billion).
From the early days after independence, when rebuilding was the main focus, to today’s targeted investments in infrastructure, education, and technology, the ADP in the national budget has remained a flexible but powerful tool for policymakers. Various tenures have implemented diverse budgetary strategies over the years, each contributing uniquely to the nation’s development. Let’s explore the evolution of these budgets across different tenures.
Prime Minister Sheikh Hasina’s 22 Budgets: From Poverty Reduction to Smart Bangladesh
Prime Minister Sheikh Hasina was head of the government 22 times when the national budget was announced. She took the hot seat of the Prime Minister’s office on 23rd June 1996, when the country was in a state of major political instability, high poverty, a national economy depended on foreign aid, and very little development plan. Within 7 days of taking power, then Finance Minister SAMS Kibria had to announce the national budget under her guidance for fiscal year 1996-97. The total budget value was 24,603 crore taka with an ADP of 12,500 crore taka.
The value of the total budget for the latest 2024-25 Fiscal Year is 7,97,000 crore taka with an ADP budget of 2,65,000 crore taka. Under her leadership, the national budget had a staggering growth of 3239% and ADP growth of 2120%. Four Finance Ministers have given the budget under her leadership. They are SAMS Kibria (6 Times), AMA Muhith (10 times), AHM Mustafa Kamal (5 times), and Abul Hasan Mahmud Ali (1 time).
Awami League’s Five Decades of Stability
- Early Years and Awami League (AL) Era (1972-1975): Tajuddin Ahmed, as the finance minister of the post-independence Bangabandhu government, delivered the first budget in 1972. Bangladesh prioritized reconstruction, reflected in the high ADP allocation of 63.74% in FY1972-73. These budgets aimed to rebuild a war-torn nation after the Liberation War of 1971. The ADP focused on development projects, such as roads, schools, and hospitals, benefiting citizens directly.
- AL (1996-2001): During Shah Abu Muhammad Shamsul Kibria’s tenure as Finance Minister, there was a notable evolution in budget priorities. The budget increased from Tk 24,603 crore in 1996-97 to Tk 27,786 crore in 1997-98, and further to Tk 29,537 crore in 1998-99. Similarly, the allocation for ADP increased from Tk12,500 crore in 1996 to a remarkable Tk19,000 crore in 2001, indicating a positive trajectory of economic growth.
- AL (2009-Present): This period, characterized by political and economic stability, can be divided into two distinct phases:
Abul Maal Abdul Muhith’s Tenure (2009-2018):
As finance minister, Muhith announced a total of 12 national budgets—more than any other minister in Bangladesh.
During Muhith’s tenure, Bangladesh experienced a consistent upward trend in fiscal allocations, reaching a peak from Tk113,819 crore in 2009-2010 to a substantial Tk434,573 crore in 2018-19. This period also marked significant growth in absolute ADP allocation, rising from Tk28,500 crore to Tk173,000 crore. These increases underscored Bangladesh’s economic expansion and heightened emphasis on infrastructure development.
The ADP allocations played a pivotal role in sustaining Bangladesh’s robust economic growth, averaging around 6-7% annually. This growth was instrumental in generating employment, reducing poverty, and enhancing the quality of life for many Bangladeshis.
AHM Mustafa Kamal’s Tenure (2019-2024):
- During this period, Bangladesh experienced a significant increase in both the national budget and Annual Development Program (ADP) allocations. Starting from a national budget of Tk46,4573 crore and an ADP of Tk202,721 crore for major infrastructural projects, allocations rose to Tk761,785 crore and Tk245,000 crore respectively by 2023-2024.
Key projects completed during this period include the Padma Bridge, the Metro Rail Project, and elevated expressways.
In the 2022-2023 fiscal year, revisions were made to the ADP budget. Transport and communications received the highest allocation at Tk69,869 crore, followed by the power and energy sector with Tk39,412 crore, and the education sector with Tk29,100 crore. Housing and community facilities were allocated Tk24,697 crore, while the health sector received Tk19,000 crore, reflecting the priorities set forth during this period.
National Budget and ADP Allocation During the Tenure of Other Parties
Military Rule and Democratic Transition (1975-1990): The era of military rule under Ziaur Rahman and the subsequent transition period, with ADP allocations generally exceeding 50% of the total budget. M Saifur Rahman’s tenure as finance minister during this period was notable, overseeing a peak ADP allocation of 65.73% in FY1980-81.
BNP Government (1991-1996): M Saifur Rahman’s return as finance minister under the BNP government, consistently maintained 50-52% for ADP of the total budget.
BNP Government (2001-2006): M Saifur Rahman’s final stint as finance minister saw a continuation of the downward trend in ADP allocation percentage, reaching 37.28% by FY2006-07.
Caretaker Government (2007-2008): Under Mirza Azizul Islam, ADP allocation hit a historic low of around 25% of the total budget. This dramatic decrease coincided with political instability and global economic turbulence, highlighting the vulnerability of development spending to external factors.
2024-25’s History-Making Budget
Abul Hasan Mahmud Ali has presented the largest budget in Bangladesh’s history for the fiscal year 2024-25. The proposed budget amounts to Tk 797,000 crore.
The Annual Development Program (ADP) for the 2024-25 financial year is set at Tk 265,000 crore. Additionally, the National Economic Council (NEC) has approved an ADP of Tk 13,288.91 crore for autonomous bodies and corporations, making the total ADP for 2024-25 Tk 2,78,288.91 crore.
The new ADP includes a total of 1,321 projects, comprising 1,133 investment projects, 21 survey projects, 87 technical assistance projects, and 80 projects from autonomous bodies and corporations.The Local Government Division has received the highest allocation in the new ADP, totaling Tk 38,808.88 crore, which constitutes 15% of the overall ADP outlay.
A significant portion of the ADP, approximately Tk 1,86,965 crore (72% of the total), has been allocated to 10 ministries or divisions.
Sector-wise allocation shows that the transport and communication sector has received the highest amount, Tk 70,687.75 crore (26.67% of the total ADP outlay). Following this, the power and energy sector received Tk 40,752 crore (15.38%), the education sector Tk 31,529 crore (11.36%), housing and community facilities Tk 24,868 crore (9.38%), the health sector Tk 20,683 crore (7.8%), local government and rural development Tk 17,986 crore (6.79%), agriculture sector Tk 13,220 crore (4.99%), environment, climate change, and water resources b crore (4.18%), industry and economic services Tk 6,492 crore (2.45%), and science and information technology sector Tk 4,786 crore (1.25%).
The path of Bangladesh’s national budgets from 1972 to 2024 mirrors the changing economic terrain and the hurdles navigated by successive administrations. Looking back over the past fifty years, Bangladesh’s steadfast dedication to progress and advancement hints at a future where prosperity and ingenuity could become commonplace, potentially serving as a model for other developing countries.
