ADP trims key social sectors
Despite longstanding concerns over human development, the interim government of Bangladesh is set to reduce allocations for education and health in the upcoming Annual Development Programme (ADP) for the 2025–26 fiscal year.
This move comes as a surprise to many who expected reforms and increased funding for these critical sectors under the transitional administration.
According to draft documents finalized by the Planning Ministry on May 6, the education sector is poised to receive Tk 28,557 crore across 91 projects. This marks a reduction of Tk 2,971 crore compared to the Tk 31,528 crore allocated in the current fiscal year. Similarly, the health sector will see its allocation fall to Tk 18,148 crore for 35 projects—down from Tk 20,682 crore.
The overall ADP size is being significantly reduced by Tk 35,000 crore. The proposed budget stands at Tk 2.30 trillion, compared to the current Tk 2.65 trillion. Of the total, Tk 1.44 trillion will come from domestic resources and Tk 860 billion from foreign project assistance. A total of 1,142 development projects are included in the plan.
Government officials argue that the cuts are a result of lower-than-expected revenue collection and a decline in foreign aid inflows. Additionally, they cite inefficiencies in project implementation capacity, especially in education and health sectors, as justification for the reduced budgets.
However, economists and policy experts see this as a missed opportunity. Dr. Selim Raihan, Executive Director of SANEM, noted that the interim government had a chance to shift away from traditional budget structures and prioritize essential services. He warned that the reduced allocations could further weaken already struggling sectors.
International organizations echo these concerns. The World Bank has identified Bangladesh as one of the countries that spend the least on education relative to the size of its economy. Meanwhile, the World Health Organization recommends $88 per person annually for basic health services—well above Bangladesh's current per capita spending of $58.
Despite widespread public demand, the proposed ADP signals that education and health remain low on the government’s list of priorities.