Climate programmes get higher allocation in nat'l budget

The allocation makes up the 10.07 percent of the funds earmarked for 25 ministries and divisions for the running FY26.

This allocation was 10.9 percent in the previous 2024-25 fiscal while 8.99 percent in 2023-24 fiscal, 8.56 percent in 2022-23 fiscal and 8.09 percent in 2021-22 fiscal.

According to the Climate Financing Budget Report for 2025-26 fiscal of the finance ministry, the operating budget of the 25 ministries/divisions is Tk 2,2,1610.51 crore in 2025-26 fiscal. Of the amount Tk 14,451.41 crore has been allocated for climate relevant allocation which is 6.52 percent of the budget.

The development budget of these 25 ministries and divisions is Tk 1,87,689.18 crore. Some Tk 26,757.56 crore has been allocated for climate relevant allocation, which is 14.26 percent.

The 25 Ministries/Divisions Environment, Forest and Climate Change Ministry, Water Resources Ministry, Agriculture Ministry, Fisheries and Livestock Ministry, Disaster Management and Relief Ministry, Rural Development and Cooperatives Division, Housing and Public Works Ministry, Women and Children Affairs, Energy and Mineral Resources Division, Local Government Division, Chattogram Hill Tracts Affairs Ministry, Primary and Mass Education Ministry, Land Ministry, Industries Ministry, Health Services Division, Power Division, Food Ministry, Secondary and Higher Education Division, Social Welfare, Road Transport and Highways Division, Shipping Ministry, Defence Ministry, Textiles and Jute Ministry, Science and Technology Ministry and Technical and Madrasa Education Division.

The development budget consistently allocates a higher percentage to climate initiatives compared to the operating budget, peaking at 14.26 percent in FY 2025–26, according to the Climate Financing Budget Report for 2025-26 fiscal.

“Climate-relevant allocations within the operating budget also show an upward trend, rising from 6.26 percent in FY 2021–22 to 7.04 percent in FY 2023–24, then slightly declines.”

This trend reflects growing government commitment towards addressing climate challenges through targeted budgeting, the report said. 

The operating budget of the 25 ministries/divisions in 2024-25 fiscal was Tk 2,06,292.67 crore. Of the amount Tk 13,980.56 crore had been allocated for climate relevant allocation which is 6.78 percent of the budget.

The development budget of these 25 ministries and divisions was Tk 2,11,867.97 crore. Of the total sone Tk 28,226.33 crore had been allocated for climate relevant allocation, which is 13.32 percent.

The report mentioned that climate expenditure against revised allocations reflects how effectively allocated funds are used for climate-related activities.

Higher utilisation indicates strong implementation capacity and alignment between planning and execution, it said adding that Tracking this matrix helps identify gaps in fund utilization and areas for improving climate finance governance.

An evaluation of climate relevant budget utilization efficiency reveals that in FY 2019- 20, climate-related expenditures amounted to 77 percent of the revised allocation, increased to 90 percent in FY 2023–24.

On an average, from FY 2019-20 to FY 2023–24, total expenditures constituted 87 percent of revised climate allocations.

Within this, average operating expenditure achieved a utilisation rate of 95 percent, while development expenditure averaged 82 percent.

“There is a pressing need for Ministries and Divisions to enhance the execution of development-oriented climate investments,” the report added.

In 2019-20 fiscal it was 71 percent, in 2020-21 fiscal was 84 percent, in 2021-22 fiscal 84 percent, in 2022-23 fiscal it was 85 percent and in 2023-24 fiscal was 87 pwrcent, reports UNB.