New Delhi: Bangladesh’s National Economic Council (NEC) has announced significant budget cuts in the health and education sectors while revising the Annual Development Programme (ADP) for the current financial year. According to a report from the English daily The Daily Star, the overall size of the ADP has been reduced by nearly 12.5 percent.
The revised ADP allocation now stands at 2,08,935 crore taka, equivalent to 3.3 percent of the country’s GDP, down from the earlier 2,30,000 crore taka or 3.7 percent of GDP. This cut reflects concerns over slow spending rates, lower-than-expected revenue collection, delays in foreign funding, and a shortage of viable projects.
The health sector has faced the steepest reduction, with its allocation slashed by 74 percent from the initially planned 18,148 crore taka. Similarly, the budget for secondary and higher education has been cut by 55 percent, reduced from 28,557 crore taka.
The report highlights that the implementation rates for these two key social sectors were extremely low during the first half of the fiscal year. This underutilisation prompted the NEC to lower the budgets to ensure better overall execution of the ADP by year-end.
While the short-term budget cuts may seem justified, experts caution that a thorough assessment of the chronic implementation weaknesses in health and education is essential. Addressing these fundamental issues is crucial for improving long-term performance in these vital sectors.
The sharp reduction in health funding is expected to delay treatment for serious diseases such as cancer, kidney, and heart ailments. Likewise, cuts in education spending could increase the risk of higher dropout rates among children.
The revised ADP encompasses a total of 1,330 projects, including 1,108 investment projects, 35 feasibility studies, and 121 technical assistance initiatives. Additionally, 66 projects are being implemented by autonomous agencies and corporations using their own resources.
Among various sectors, local government divisions have received the highest allocation in the revised ADP, amounting to 37,534 crore taka. This funding supports social security schemes, poverty alleviation programs, infrastructure development, and the operation and maintenance of municipalities, city corporations, and unions.
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