Amid concerns of potential budget cuts to education and health in the upcoming fiscal year’s Annual Development Program (ADP), experts are emphasizing the critical need for a people-centric policy approach to optimize reduced allocations. This perspective emerged today during a dialogue titled “National Budget for Education and Health,” organized by the non-government think tank Unnayan Shamannay.
Historically, macroeconomic pressures have often led budget planners to reduce allocations for these vital sectors. However, participants at the dialogue underscored that any such reductions, if unavoidable, must be accompanied by innovative strategies to ensure funds are spent effectively. Relying on conventional approaches, they argued, will not yield positive outcomes.
The panel of expert discussants included Dr. Md. Fazlur Rahman, Professor at the Institute of Education and Research, University of Dhaka; Kazi Faruq Hossain, Assistant Professor at the Institute of Education and Research, Jagannath University; Dr. Kamrul Hasan Mamun, Professor of Physics, University of Dhaka; and Dr. Halida Hanum Akhter, a Public Health Specialist.
Abdullah Nadvi, Research Director at Unnayan Shamannay, highlighted a significant disparity in Bangladesh’s investment in education and health compared to other countries transitioning from least developed to developing status. He noted that such nations, on average, allocated 16% and 9% of their national budgets to education and health, respectively, in the years leading up to their graduation. In contrast, Bangladesh, slated to achieve developing country status in 2026, has seen average allocations of only 12% for education and 3% for health in recent years. This suggests Bangladesh may enter the global market as a developing country without sufficient preparatory investment in these crucial sectors.
Dr. Halida Hanum Akhter addressed the common argument that health ministries are often unable to fully utilize allocated funds. She pointed out that over two-thirds of total health expenditure in Bangladesh comes directly from citizens’ pockets, while only 23% originates from the government budget. To alleviate the financial burden on low-income citizens, she stressed the imperative of prioritizing the health sector in the national budget. Dr. Akhter specifically emphasized that increasing allocations for free medicine and medical supplies would likely lead to better fund utilization and significantly reduce out-of-pocket health expenses, given that 67% of citizens’ health-related spending goes towards these items.
Dr. Kamrul Hasan Mamun challenged the notion that education receives the largest share of the budget in recent years. He argued that a substantial portion of this allocation is not directly related to actual educational quality. Even within the direct education budget, he noted, most funds are spent on infrastructure and procurement. As an example, in the current fiscal year, 82% of the education development budget (investment projects) is being directed towards infrastructure and purchases. Consequently, adequate funding for improving the quality of education remains insufficient.
The dialogue concluded with an open discussion segment, engaging young researchers, representatives of civic organizations, university students, and members of the media. The session was moderated by Dr. Mahbub Hasan, Senior Research Associate at Development Coordination.
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