The reliance on foreign aid in the government’s Annual Development Programme (ADP) has been steadily increasing, reflecting a growing proportion of foreign financing in development projects. In the approved ADP for the fiscal year 2024-25 (FY25), foreign aid accounted for 37.7% of the total, with the remaining 62.3% financed by the government. This marks an upward trend from previous years, where foreign aid constituted 35.74% of the ADP fund in the current fiscal year, later reduced to 34.1%.
The government’s prioritization of foreign financing is evident in the allocation of funds for the next fiscal year, with a decrease of Tk 4,000 crore in government funds compared to the current fiscal year, while the share of foreign aid has increased by Tk 6,000 crore. The foreign aid allocation proposed in the new ADP is Tk 100,000 crore.