Education outlay rises sharply

The new budget has proposed a sharp increase in education spending for the next fiscal year, but experts said a larger allocation would mean little unless the money is spent efficiently and translated into better learning outcomes.

For education, Finance Minister Amir Khosru Mahmud Chowdhury yesterday proposed an allocation of Tk 1,36,606 crore, equivalent to 2 percent of GDP, for the 2026-27 fiscal year. That is Tk 49,400 crore higher than the Tk 87,206 crore earmarked in the current fiscal year.

However, the allocation is not limited to the Ministry of Primary and Mass Education and the two divisions under the Ministry of Education. It also includes allocations for education-related institutions run by other ministries, including textiles, railways, defence, agriculture, fisheries and ICT.

The core education budget, covering the primary ministry and the two education divisions, has been set at Tk 1,22,495 crore, up about 28 percent from Tk 95,644 crore in FY2025-26.

“The allocation will be good if it can be spent properly,” said Prof Mustafizur Rahman, distinguished fellow at the Centre for Policy Dialogue (CPD). “But so far, under the existing structure and even in the current budget, we see that what is being allocated is not being spent.”

In his budget speech, the finance minister said the government has set a goal of raising the education sector allocation to 5 percent of GDP over the next five years.

He said the curriculum would be transformed to develop ethical values, social responsibility, leadership qualities and humane character among students.

The minister added that the government would prioritise technical and vocational education, third-language instruction, sports and culture, technology-enabled learning and “Learning with Happiness”.

He said that technical education would be introduced gradually from class VI, while a mandatory third language would be taught alongside Bangla and English.

Khosru also mentioned free education for girls up to graduation, support for poor students, inclusive education for children with disabilities, midday meals and technology-based classroom initiatives.

INCREASE DRIVEN BY PROJECTS

An analysis of the budget documents shows that the increase in education budget is largely being driven by development expenditure.

Development spending is set to rise to Tk 52,597 crore from Tk 32,191 crore, an increase of about 63 percent from the ongoing fiscal year. Operating expenditure will increase to Tk 69,898 crore from Tk 63,452 crore, up around 10 percent.

Among the three core areas, the Secondary and Higher Education Division will receive the largest allocation at Tk 57,301 crore, compared with Tk 47,564 crore in the current fiscal year.

The Ministry of Primary and Mass Education will receive Tk 46,737 crore, up from Tk 35,403 crore, while the Technical and Madrasa Education Division will get Tk 18,457 crore, against Tk 12,678 crore in the ongoing fiscal year.

The sharp rise in development spending has brought implementation capacity into focus.

A policy brief by local think tank Centre for Policy Dialogue (CPD) found that education budget utilisation fell from 111 percent in FY2010 to 88 percent in FY2023. Over the same period, development expenditure utilisation dropped from 102 percent to 79 percent.

The broader picture also points to weak implementation.

According to data from the Implementation Monitoring and Evaluation Division (IMED), ministries and divisions spent Tk 75,607 crore, or 36.19 percent, of the revised ADP allocation of Tk 2,08,936 crore between July 2025 and March 2026, the first nine months of FY2025-26.

‘ACCOUNTABILITY TEST’

Regarding the issue, Prof Mustafizur said the key question was how the education sector would spend the money properly and ensure good value for money. “That aspect of institutional capacity is not reflected in budget distribution or allocation. They [govt] will have to pay attention to institutional capacity.”

“They are saying they will increase manpower. There are around five lakh vacant posts in different government offices. But along with that, the litmus test will be whether these institutions run with accountability and efficiency,” he said.

Contacted, Rasheda K Choudhury, executive director of the Campaign for Popular Education, said the larger budget and the treatment of education as a single sector deserved appreciation because it would reduce confusion over how much money was actually being allocated to education.

She said the allocation should be viewed as an investment in human capital development rather than merely a budget increase.

On spending, Rasheda raised three major concerns: proper utilisation, transparency and accountability, and monitoring from the programme design stage. “Spending the allocation on time is not enough. The money has to be spent in a transparent and accountable manner.”

She added that allocating 2 percent of GDP to education showed progress, but spending should gradually rise to 3 percent and then move towards 6 percent over the next five years.

“We can spend a lot of money, but if quality does not improve, there will be no real benefit.”