Despite pledging fiscal discipline and efficiency in public spending, the interim government led by Chief Adviser Muhammad Yunus has increased project costs by nearly Tk 80,000 crore (Tk 800 billion) across 65 development projects over the past eighteen months.
An analysis of meeting minutes from the Executive Committee of the National Economic Council (ECNEC) reveals a pattern of substantial cost revisions that appear to contradict the administration’s initial commitment to reduce waste and ensure stricter oversight of public expenditure.
ECNEC Review Findings
Since assuming office on August 8, 2024, the interim government has held 19 ECNEC meetings, during which 87 ongoing projects were revised. Of these, only seven projects saw cost reductions, resulting in total savings of Tk 950 crore — just 2.45 percent of their previous allocations.
In contrast, 65 projects experienced significant cost increases. The original combined allocation for these projects stood at Tk 2.24 lakh crore, but revisions pushed the total to Tk 3.04 lakh crore — an average increase of 35.67 percent. The financial impact amounts to approximately Tk 79,834 crore in additional expenditure.
Meanwhile, 15 projects retained their original budgets but received extensions in implementation timelines.
Major Cost Escalations
Among the most notable revisions is the Rooppur Nuclear Power Plant project. Initially approved in 2016, its revised cost has now been set at Tk 1.39 lakh crore — an increase of Tk 25,593 crore, or 22.63 percent.
The third phase of Dhaka’s potable water treatment plant project recorded one of the sharpest hikes. Originally estimated at Tk 4,597 crore, its cost has more than tripled to Tk 16,015 crore — an increase of Tk 11,417 crore.
Other major projects with increased allocations include:
SASEC Road Connectivity-2 (Elenga–Rangpur Highway): Tk 7,155 crore increase
Matarbari Deep Sea Port Project: Tk 6,604 crore increase
Chattogram Sewerage Project: Tk 1,410 crore increase
Rohingya crisis response project: Tk 1,324 crore increase
The Upazila Stadium Construction Project (2nd phase) also saw its budget rise by 48 percent, from Tk 1,649 crore to Tk 2,855 crore.
Metro Rail an Exception
A notable exception is the Dhaka Metro Rail project. Following the exclusion of certain station-area development components and land acquisition expenses, its total cost was reduced from Tk 33,472 crore to Tk 32,718 crore — generating savings of Tk 754 crore.
New Approvals and Regional Disparities
During the same period, the government approved 135 new projects with a combined estimated cost of Tk 2.03 lakh crore. While Chattogram district received the highest allocation among new initiatives, 21 districts reportedly did not receive any specific project approvals.
White Paper and Expert Concerns
Soon after taking office, the interim administration formed a white paper committee led by economist Debapriya Bhattacharya. The committee’s report alleged that nearly Tk 2.75 lakh crore had been wasted under the previous Awami League government, with up to 40 percent of development spending lost to inefficiency and corruption.
Against that backdrop, the interim government had vowed to avoid large and non-essential projects and to strengthen monitoring mechanisms.
However, analysts argue that despite the change in leadership, the longstanding culture of revising projects upward has persisted. They question how the government intends to manage the additional Tk 80,000 crore burden and whether meaningful reforms in project governance will follow.
The coming months are likely to test the administration’s credibility on fiscal prudence and structural reform.
