B Mirror Report: A sharp and unprecedented increase in development budget allocations for Bangladesh’s education and health sectors in the upcoming fiscal year has triggered concerns among economists and policy experts over the government’s ability to implement such large-scale spending effectively.
The National Economic Council (NEC) recently approved the Annual Development Programme (ADP) for FY2026–27, featuring significant increases for key social infrastructure sectors. However, analysts have described the move as a “high-stakes gamble” due to the historically weak execution records of the ministries involved.
Under the new ADP, the Health Services Division has received an allocation of Tk 268.06 billion, marking a staggering 760 percent increase compared to the revised ADP of FY2025–26. The Health Education and Family Welfare Division also saw its allocation rise sharply to Tk 82.21 billion, a 511 percent increase.
The education sector has similarly received major boosts. The Secondary and Higher Education Division has been allocated Tk 208.35 billion, up 237 percent from the revised budget, while the Primary and Mass Education Ministry received Tk 194.41 billion, a 141 percent increase.
Overall, the government has set a Tk 3.0 trillion development budget for FY2026–27, which is 30.43 percent higher than the original ADP and 50 percent higher than the revised ADP of the previous fiscal year.
Despite the ambitious allocations, experts have raised concerns about chronic inefficiencies in project implementation. Historically, both health and education sectors have struggled with bureaucratic delays, weak procurement systems, shortage of skilled project directors, and governance issues, often leading to underutilization of funds and mid-year budget cuts.
According to the Implementation Monitoring and Evaluation Division (IMED), the Health Services Division executed only 21.68 percent of its ADP allocation during the first nine months of the current fiscal year one of the lowest among all ministries.
Economist Dr Debapriya Bhattacharya cautioned that funding alone is insufficient without institutional reform. “Allocating funds is only half the battle; the real challenge lies in execution,” he said, adding that without stronger accountability and monitoring systems, the increased allocations may fail to deliver tangible outcomes.
Government officials, however, defended the expansionary ADP, saying it reflects a long-term strategy to strengthen human capital, improve rural healthcare infrastructure, and address learning losses in the education sector.
Finance and Planning Minister Amir Khosru Mahmud Chowdhury compared the investment approach to restoring economic momentum, arguing that large-scale spending is necessary to overcome stagnation.
Despite the optimism, analysts warn that Bangladesh’s persistent gap between planned and actual development spending remains a structural challenge. Critics argue that without addressing systemic inefficiencies, the record allocations risk remaining largely unutilised, undermining their intended developmental impact.
