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Bangladesh Slashes Health, Education Budgets by 74% and 55% in Major Cuts

Bangladesh's National Economic Council has significantly downsized the Annual Development Programme by about 12.5 percent. The health sector faces a drastic 74 percent reduction from its original allocation, while secondary and higher education is cut by 55 percent. The report cites slow spending, lower revenue mobilisation, and slower external fund flow as key reasons for the cuts. These reductions could delay essential medical treatments and risk pushing more children out of school.

Key Points: Bangladesh Cuts Health, Education Budgets in Revised ADP

  • 12.5% overall ADP budget cut
  • Health sector allocation slashed by 74%
  • Education sector allocation reduced by 55%
  • Cuts due to slow spending and low revenue
  • Local government division receives highest allocation
2 min read

Bangladesh makes largest Budget cuts to health, education sectors: Report

Bangladesh's NEC cuts ADP by 12.5%, with health sector reduced 74% and education 55%, citing slow spending and revenue issues.

"The slow implementation rates of the two biggest social sectors... prompted the NEC to cut down their allocation - The Daily Star report"

New Delhi/ Dhaka, Jan 29 Bangladesh's National Economic Council has significantly downsized the health and education sector in the Annual Development Programme, according to a media report.

In the tradition of reviewing the performance of the Annual Development Programme (ADP) at the mid-point of each fiscal year, the NEC downsized the ADP by about 12.5 per cent, to 208,935 crore taka (3.3 per cent of GDP) from its original budget allocation of 230,000 crore taka (3.7 per cent of GDP), reported The Daily Star, a Bangladeshi English-language daily.

It cited slow spending, lower than expected revenue mobilisation, slower external fund flow, and a shortage of projects as major reasons for the ADP budget cut.

While the health sector saw a 74 per cent reduction from its original allocation of 18,148 crore taka, secondary and higher education was reduced by 55 per cent from the original allocation of 28,557 crore taka.

"The slow implementation rates of the two biggest social sectors, over the first six months of the current financial year, prompted the NEC to cut down their allocation in fear of underutilisation, which may improve the overall ADP implementation rate at the end of the year," the report said.

"While this makes immediate sense, the underlying causes of historically low ADP implementation of these two sectors should be assessed properly, and measures should be taken to ramp up the performance of the two prime social sectors in the country in the future," it added.

The substantially reduced allocations for health in the RADP could significantly affect the population, with a delay in essential medical treatments for cancer, kidney, and heart conditions. Further, the Budget cuts in the education sector could push more children out of school.

The Revised Annual Development Programme (RADP) consists of a total of 1,330 projects, including 1,108 investment projects, 35 feasibility studies, and 121 technical assistance projects. Another 66 projects are being implemented by autonomous bodies and corporations, using their own funds, the report said.

Notably, the local government division received the highest allocation of 37,534 crore taka in the RADP. This includes social safety net programmes and other community-based interventions focusing on poverty alleviation, infrastructure development, and operation and maintenance in city corporations, municipalities, and unions, the report added.

- IANS

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Reader Comments

R
Rohit P
While the reasons given are slow spending and fund flow, the impact on the common people will be severe. Delays in cancer and heart treatments? More children out of school? This seems like a short-sighted move for balancing the books. The focus should be on fixing the implementation issues, not cutting funds.
A
Aman W
It's a complex situation. If the money wasn't being spent effectively, maybe reallocating it to local government for poverty alleviation and infrastructure (which got the highest allocation) makes some practical sense. But the cuts are too deep. Hope they have a solid plan to improve project execution next year.
S
Sarah B
As a neighbour, India should watch this closely. A stable and prosperous Bangladesh is in everyone's interest. Social sector cuts can lead to long-term instability. Perhaps there's scope for bilateral cooperation or knowledge sharing on efficient public fund utilization?
K
Karthik V
The report itself says the underlying causes of slow implementation should be assessed. That's the key. Just cutting budgets because departments can't spend is treating the symptom, not the disease. They need to fix the administrative bottlenecks. Wishing strength to our Bangladeshi brothers and sisters.
N
Nisha Z
Very sad news. Education is the only way to break the cycle of poverty. A 55% cut is devastating. As an Indian, I feel for the families there. We have our own challenges, but such drastic cuts in basic sectors are never a good sign for any developing economy.

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