Education budget expectations: A call for prioritisation and efficiency
To realise its development goals, Bangladesh must go beyond increasing education funding and prioritise smarter investments in teacher training, AI education, and technical skills
As Bangladesh prepares to announce its draft National Budget for FY 2025-26 in early June, the country's education sector stands at a crucial crossroads. Education has long been the foundation of national development, yet our investment remains modest by global standards. Currently, we allocate approximately 2% of our GDP to education — far lower than the 3.4% average seen among Low- and Middle-Income Countries (LMICs).
Why efficiency matters
While increasing the education budget is necessary, ensuring efficient use of resources is equally vital. UNESCO's Education Finance Watch 2022 highlights that much of the education budget in LMICs, including Bangladesh, is consumed by administrative overheads rather than reaching classrooms.
Moreover, our budget execution rate is only about 85%, according to the World Bank's Public Expenditure Review. Delays, bureaucratic inefficiencies, and weak project management reduce impact. Simply spending more without improving governance and oversight would risk wasting opportunities for transformation.
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Prioritisation over expansion: A vision-aligned master plan
Rather than attempting to do everything at once, we must craft a vision-aligned master plan that clearly defines the citizens and workforce we aim to build by 2030 and beyond. Budget prioritisation should be strategic, focusing on the sectors that will yield the highest returns for the economy and society.
Improving teacher quality and training
The quality of teachers is the foundation of any education reform. Yet about 23% of primary and 30% of secondary teachers in Bangladesh lack professional training. Without skilled teachers, infrastructure, or curriculum, reforms will achieve little. Investments must focus on pre-service education, continuous professional development (CPD), modern pedagogical techniques, and performance incentives to attract and retain talent.
Upskilling for employment: Bridging education and the job market
We must bridge the gap between education and employment if we want to harness our demographic dividend. Currently, over 4 million students are enrolled in 9,256 madrasas, yet English language proficiency among them remains critically low compared to the other two streams. Integrating Arabic and English language instruction within madrasas would create pathways for employment in the Middle East.
Similarly, the global economy's pivot to Artificial Intelligence (AI) demands urgent action. China mandated AI education for all schools by 2025, while Vietnam and Malaysia are embedding AI modules across secondary schools. We must introduce AI basics into the school curriculum to prepare students for jobs in automation, data science, and digital services.
Technical education must also be realigned. About 71% of Bangladeshi overseas workers are classified as low and semi-skilled, limiting income potential. Meanwhile, sectors such as healthcare, IT, construction, and garments face a shortage of skilled workers domestically. Mapping labour market demands and modernising technical education programs can turn both challenges into opportunities.
Research and development in higher education
Our spending on Research and Development stands at only 0.03% of GDP, compared to a global average of 2.68%. Strengthening university research funding, fostering industry-academia partnerships, and incentivising data-driven projects will build a stronger foundation for a knowledge-based economy.
A new approach for a new Bangladesh
The upcoming budget must mark a fundamental shift — from scattered spending to strategic investment based on a clear national vision. Efficiency, accountability, and measurable outcomes should be guiding principles.
A budget of hope
We aspire to become an upper-middle-income country by 2031. Education remains its most powerful instrument to achieve this dream. The 2025-26 budget offers a critical opportunity not just to invest more, but to invest smarter —prioritising teachers, skills, employability, research, and innovation.
A national vision aligned with strategic spending will unlock the potential of our young population and secure a brighter, more competitive future on the global stage.
Zareen Mahmud Hosein is a Partner of Snehasish Mahmud & Co, a Chartered Accountants and Founder of CholPori, a blended learning platform.
Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the opinions and views of The Business Standard.
