Education, Health Sectors See Tk5,471cr Slash in ADP Allocation

Govt Set to Approve FY26 ADP with Major Cuts in Education, Health

In an effort to craft a realistic and implementable budget, the government is preparing to approve the Annual Development Programme (ADP) for FY26, featuring notable funding cuts across several sectors.

The draft ADP is scheduled to be placed today at a meeting of the National Economic Council (NEC), chaired by Chief Adviser Prof Muhammad Yunus.

Finalised by the planning ministry, the proposed ADP slashes allocations for education and health — two sectors long highlighted as crucial for human capital development. Despite repeated calls from experts and development partners to boost spending in these areas, the government plans to cut a total of Tk5,471 crore from them.

According to the draft, education will see its allocation fall by Tk2,971 crore to Tk28,557 crore, down from Tk31,528 crore in the current fiscal year. The health sector’s budget will be reduced by Tk2,534 crore, bringing it to Tk18,148 crore for FY26.

Economists and policy analysts have raised concerns, warning that such cuts may jeopardise the country’s long-term development goals. Dr Selim Raihan, Executive Director of SANEM, termed the move a missed opportunity for the interim government to shift away from an infrastructure-dominated budget and prioritise the social sector.

Bangladesh ranks low globally in education and health investment. The World Bank lists it among the ten lowest spenders on education relative to GDP. The WHO recommends at least $88 per capita on health, while Bangladesh currently spends only about $58 — much of it out-of-pocket.

Planning ministry officials argue that the reductions reflect fiscal constraints, including sluggish project execution, lower-than-expected revenue collection, and dwindling foreign loan commitments. They maintain that the ADP has been structured to ensure available funds can be effectively utilized within the fiscal year.

The proposed FY26 ADP stands at Tk2.3 lakh crore — Tk35,000 crore less than the Tk2.65 lakh crore in the current fiscal year. Of this, Tk1.44 lakh crore is expected from domestic sources and Tk86,000 crore from foreign assistance. The plan includes 1,143 projects: 969 investment projects, 97 technical assistance initiatives, and 19 survey efforts.

Despite the overall reduction, infrastructure remains the top priority. Transport and communication will receive the largest allocation at Tk58,973 crore, followed by power and energy at Tk32,392 crore. Education remains the third-largest allocation at Tk28,557 crore, ahead of housing and community facilities (Tk22,776 crore) and health (Tk18,148 crore).

Among administrative bodies, the Local Government Division tops the list with Tk36,098 crore, followed by the Roads and Highways Division (Tk32,329 crore) and the Power Division (Tk20,283 crore). The Secondary and Higher Education Division is set to receive Tk13,625 crore, with major allocations also going to the ministries of Health Services, Primary and Mass Education, and Science and Technology.

Planning Adviser Dr Wahiduddin Mahmud recently remarked that this year’s budget will be conservative, emphasizing financial viability and implementability. “We’re not aiming for ambitious targets,” he said. “We’re focused on crafting a budget grounded in reality.”

Still, experts continue to stress the need for stronger investments in education and health to build human capital and ensure sustainable, inclusive development.