Bangladesh’s National Economic Council (NEC) has delivered a shock to the nation’s social sectors, announcing steep cuts to health and education budgets midway through the fiscal year. The Annual Development Program (ADP) has been scaled back by 12.5%, shrinking from 230,000 crore taka to 208,935 crore taka, now representing just 3.3% of GDP.
Health takes the hardest hit, with allocations slashed by a staggering 74% from the original 18,148 crore taka. Secondary and higher education fares little better, suffering a 55% reduction from 28,557 crore taka. These moves come after dismal spending rates in the first half of the fiscal year, prompting NEC to reallocate funds to boost overall ADP implementation by year-end.
Slow revenue collection, delayed foreign funding, and a shortage of viable projects fueled the revisions. Local government division emerges as the big winner, securing the largest chunk at 37,534 crore taka for social safety nets, poverty alleviation, infrastructure, and municipal operations.
The revised ADP encompasses 1,330 projects, including 1,108 investment initiatives, 35 feasibility studies, and 121 technical assistance efforts, plus 66 self-funded by autonomous bodies. While this fiscal prudence aims to hit spending targets, experts warn of dire long-term consequences.
Cancer treatment, kidney care, and cardiac services could face severe delays due to health budget evisceration. In education, reduced funding risks higher dropout rates among students, exacerbating inequality. The core issue—chronic implementation failures in social sectors—demands urgent root-cause analysis to prevent recurring crises and safeguard Bangladesh’s human development trajectory.