Bangladesh to Allocate 50 Million Taka per Constituency for Local Infrastructure Development

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The government is moving to empower lawmakers with significant discretionary funds for local infrastructure development, proposing an allocation of 50 crore taka per parliamentary seat over the next five years. Under a new initiative titled “Development of Important Rural Infrastructure on Priority Basis,” the Local Government Engineering Department (LGED) has submitted a project proposal worth approximately 15,000 crore taka to the Ministry of Local Government.

The plan allows each Member of Parliament to direct funds toward specific regional projects, including road construction, bridges, culverts, and marketplaces, based on their own assessment of local priorities. According to internal documents, the total budget for the 279 parliamentary seats is set at 13,950 crore taka, with an additional 1,000 crore taka earmarked for administrative expenses, including personnel and implementation management.

To ensure more effective oversight compared to previous administrations, the government intends to split the national initiative into eight separate departmental projects, each managed by a dedicated project director. Officials cited the logistical burden of managing a singular national project as the primary driver for this decentralized approach. The allocation increase—doubling the previous 25 crore taka proposal from the last government—is being attributed to persistent inflation and the rising costs of construction materials.

The practice of providing discretionary funds to lawmakers dates back to the 2005-06 fiscal year. While proponents argue that these funds are essential for addressing neglected regional needs, the policy has long faced scrutiny from governance experts and watchdog organizations. Transparency International Bangladesh (TIB) has previously documented significant irregularities within such projects, including allegations of nepotism, substandard work quality, and “commission trading” involving both contractors and political affiliates.

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Constitutional experts have also raised concerns regarding the fundamental role of parliamentarians versus local government bodies. Under the Constitution, the primary mandate of an MP is legislative, while local infrastructure development is legally assigned to local government institutions such as district, upazila, and union councils. Critics argue that diverting funds through MPs undermines these local bodies, which are already struggling with institutional efficacy.

Despite these debates, supporters maintain that the intervention is necessary. Lawmakers frequently contend that constituents expect them to deliver tangible development projects, and in the absence of fully empowered local councils, these funds serve as a vital lifeline for rural connectivity. As the project heads to the Planning Commission for approval, officials at LGED have pledged that the new funding will not overlap with existing road works, aiming to optimize the impact of the massive capital injection.