Bangladesh proposes lower transport budget amid implementation concerns

Bangladesh's government has proposed a Tk 55,939 crore budget for key transport sectors in FY2026-27, marking a 7.87% reduction from the previous year's allocation. The Road Transport and Highways Division, Ministry of Railways, and Ministry of Shipping will collectively receive Tk 4,780 crore less than in FY2025-26. However, this figure is still higher than the revised allocation for the outgoing fiscal year.

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The size of the budget is not the main issue. What matters most is whether we can implement it.

Despite the proposed budget, experts like Prof Md Hadiuzzaman from Buet's Civil Engineering department emphasize that the size of the allocation is less critical than the government's ability to implement projects effectively. He points to past instances where large budgets did not translate into timely progress, suggesting that capacity building and efficient spending are paramount for generating economic benefits and jobs.

Concerns about poor implementation are highlighted by low fund utilization in major transport projects. For example, the Annual Development Programme (ADP) saw significant allocations for two metro rail projects, but actual expenditures fell far short of the budgeted amounts. This underutilization may have influenced the government's more conservative spending plans for the upcoming fiscal year.

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Even when large budgets are prepared, implementation remains slow. Instead of preparing a big budget, the key question is whether we have the capacity to implement the allocation and generate real economic benefits and jobs.

Hadiuzzaman warns that large allocations without sufficient institutional capacity can lead to waste, with a tendency to rush spending at year-end to meet targets. He stresses that healthy progress requires effective implementation and real economic gains, not just the spending of allocated funds.

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If a large allocation is made without building institutional capacity, it creates room for waste. Often, towards the end of the fiscal year, there is a tendency to show hurried progress simply to spend the money. That is not healthy.