When the interim government led by Dr Muhammad Yunus assumed office following the mass popular uprisings of July–August 2024, it pledged to curb wasteful spending, enhance project implementation efficiency, and ensure prudent management of national development projects. Yet, recent analyses reveal a starkly contrasting reality. According to data from the Executive Committee of the National Economic Council (ECNEC) and the Ministry of Economic Relations, the costs of at least 65 ongoing projects have surged abnormally, resulting in an additional expenditure of approximately BDT 79,834 crore within just 18 months.
Revised Project Expenditure Overview
ECNEC convened 19 sessions during this period, reviewing and amending 87 ongoing projects. On average, each meeting adjusted the budgets of five projects. The expenditure changes are summarised below:
| Project Category | Number of Projects | Reduction (BDT crore) | Increase (BDT crore) | Unchanged/Time Extension |
|---|---|---|---|---|
| Projects with Increased Costs | 65 | – | 79,834 | – |
| Projects with Reduced Costs | 7 | 950 | – | – |
| Projects with Unchanged Costs | 15 | – | – | Extended duration |
Initially, the total approved budget for these 65 projects was BDT 2,24,000 crore. Following the revisions, it escalated to BDT 3,04,000 crore, representing an average cost increase of 35.67%.
Significant Project Cost Escalations
Several major projects have seen notable budgetary inflations:
Gas pipeline construction: BDT 1,305 → 1,571 crore
Women’s empowerment IT programme: BDT 1,490 → 1,630 crore
Nuclear power plant: BDT 1,13,000 → 1,39,593 crore (22.63% increase)
Dhaka Water Treatment Plant (Phase 3): BDT 4,597 → 16,015 crore
SASEC Road Connectivity-2 (four lanes): BDT 7,155 crore
Matarbari Seaport development: BDT 6,604 crore
Chittagong Sewage Project: BDT 1,410 crore
Rohingya Crisis Response Projects: BDT 1,324 crore
Upazila Stadium (Phase 2): BDT 1,649 → 2,855 crore
The Dhaka Metro Rail Project was the sole exception, where costs were reduced from BDT 33,472 crore to 32,718 crore.
New Projects and Economic Context
Over the same period, the interim government approved 135 new projects with a cumulative budget of BDT 2,03,000 crore, with Chittagong receiving the highest priority. No new projects were allocated to 21 districts.
By contrast, the previous administration, prior to its departure, spent nearly BDT 7,20,000 crore under ADP projects, of which 40% was reportedly wasted. Domestic and foreign debt surged from BDT 2,76,830 crore to BDT 18,36,000 crore.
Economists note that while the interim government aimed to improve investment efficiency and enforce stricter project approvals, the budgetary revisions have paradoxically led to substantial cost escalations. The additional BDT 79,834 crore spent on 65 projects raises pressing questions about fiscal management and accountability.
The focus now shifts to the current government: whether it can absorb these extra costs, introduce meaningful reforms, and ensure that future development projects are executed efficiently and transparently.