Record allocations for health, education and social security – but will quality improve?
Value for money must be ensured by accurately identifying beneficiaries, says Fahmida
The proposed budget for the fiscal 2026-27 has prioritised record allocations for health, education and social protection, alongside a renewed emphasis on improving service quality in these key sectors.
The budget reflects commitments made in the BNP's election manifesto, which pledged higher public spending and qualitative improvements in social services.
The finance minister, placing the budget proposal in parliament yesterday, sought to align fiscal priorities with those commitments.
Under the proposed plan, the health sector receives an allocation to 1% of GDP, the highest in the country's history. Education spending has been raised to 2% of GDP for the first time.
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The government's flagship Family Card programme, along with existing relief and food assistance schemes, has also expanded a rights-based cash transfer approach.
Overall allocation for social security has been increased by 14% from the current fiscal year, with a focus on life-cycle support for vulnerable groups.
Experts, however, cautioned that higher allocations alone will not guarantee improved outcomes unless implementation capacity and governance are strengthened.
They said spending in education and health must go beyond infrastructure development and instead prioritise service delivery, quality improvement and accountability mechanisms.
Fahmida Khatun, executive director of the Centre for Policy Dialogue (CPD), said higher allocations do not automatically translate into better results.
"Simply spending more money does not deliver benefits; what is needed is quality spending," she said.
She added that the health has long struggled with weak budget execution. Strengthening institutional systems and improving service quality must therefore be prioritised, she added.
On education, she called for greater focus on improving learning outcomes and aligning skills with labour market needs. On social protection, she stressed the importance of accurate beneficiary identification and value-for-money spending.
"A large volume of funds will be spent on social security, but value for money must be ensured by accurately identifying beneficiaries. A digital database of beneficiaries should be developed," she said.
Bangladesh, once widely recognised for its progress in poverty reduction, has seen poverty levels rise in the post-Covid period. At the same time, weak education outcomes have widened the gap between graduates and labour market demands.
Despite large investments in health infrastructure, service quality concerns persist, with experts questioning whether increased allocations can address structural inefficiencies.
The budget also proposes duty and tax incentives on the import of medical equipment and raw materials for medicines, aimed at reducing treatment costs.In education, the minister has promised curriculum reforms to better align learning with industry requirements.
Experts said the health sector's inability to fully utilise allocated funds remains a long-standing concern, with procurement inefficiencies and underused medical equipment frequently cited as key challenges.
In education, they added, spending has historically favoured infrastructure expansion over research, teacher training and skills development.
They stressed that breaking from these entrenched patterns and ensuring effective use of public funds will be essential to achieving the intended benefits of higher allocations.
