The national budget for FY 2026�"27 has delivered one of the most significant increases in education spending in recent years. The government has proposed a total allocation of Tk 136,606 crore for the broader education sector, equivalent to approximately 2 per cent of GDP. More importantly, the core education budget�"covering the Ministry of Primary and Mass Education, the Secondary and Higher Education Division, and the Technical and Madrasa Education Division�"has increased to Tk 122,495 crore from Tk 95,644 crore in the previous fiscal year. For a country long criticised for underinvesting in education relative to its development ambitions, this increase represents a welcome commitment to human capital development.
The headline figures are certainly encouraging. The Secondary and Higher Education Division (SHED) has received the largest allocation, amounting to Tk 57,301 crore, compared with Tk 47,564 crore in the previous fiscal year. The Ministry of Primary and Mass Education has been allocated Tk 46,737 crore, up from Tk 35,403 crore. Meanwhile, the Technical and Madrasa Education Division (TMED) has received Tk 18,457 crore, compared with Tk 12,678 crore last year, representing the highest percentage increase among the three divisions.
These allocations suggest that the government recognises the need to invest across the educational continuum�"from primary schooling to higher education and technical skills development. They also reflect an understanding that Bangladesh’s future competitiveness will depend heavily on the quality of its human capital.
Perhaps the most striking feature of the budget, however, is not the increase itself but the nature of that increase. Traditionally, Bangladesh’s education budgets have been dominated by recurrent expenditures, particularly salaries and administrative costs. This year marks a notable departure from that pattern. Development expenditure has risen from Tk 32,191 crore in FY 2025�"26 to Tk 52,597 crore in FY 2026�"27�"an increase of approximately 63 per cent. In contrast, operating expenditure has increased by around 10 per cent, from Tk 63,452 crore to Tk 69,898 crore.
As a result, development spending now accounts for roughly 43 per cent of the core education budget, while operating expenditure constitutes about 57 per cent. This shift suggests a stronger emphasis on projects, infrastructure, system modernisation, and reform initiatives.
At first glance, this appears positive. Many schools, colleges, and educational institutions continue to struggle with inadequate facilities, overcrowded classrooms, limited technological resources, and insufficient learning materials. Development spending can help address these deficiencies and improve educational environments.
Yet the increase in development expenditure also raises important questions. Development budgets can finance a wide range of activities, including construction projects, technology procurement, curriculum reform, teacher training, and digital learning initiatives. The information available so far does not clearly indicate how much of the additional allocation is directed towards improving learning outcomes and how much will be absorbed by infrastructure projects.
This distinction matters because Bangladesh’s most pressing educational challenge today is not access but learning.
Over the past several decades, Bangladesh has achieved remarkable progress in expanding educational participation. School enrolment has increased significantly, gender disparities have narrowed, and educational institutions have expanded into previously underserved areas. These achievements deserve recognition.
However, the most important question is whether the additional development spending will directly improve learning quality. Will it strengthen teacher development, modernise curricula, improve assessment systems, and enhance classroom practices? Or will it focus primarily on physical infrastructure with limited impact on what students actually learn?
The answer will determine whether this budget becomes transformative or merely expansive.
The substantial increase in allocation for the Technical and Madrasa Education Division is particularly noteworthy. Its budget has increased by nearly 46 per cent, reflecting growing recognition of the importance of skills development. Bangladesh’s economy is undergoing rapid transformation driven by digitalisation, technological change, industrial diversification, and integration into global markets. Employers increasingly seek workers who possess practical skills, digital literacy, adaptability, and technical competencies.
At the same time, many graduates continue to face difficulties securing employment despite possessing academic qualifications. The mismatch between education and labour market demands has become a persistent concern. The larger allocation for technical and skills-oriented education therefore signals an important policy shift towards preparing learners for emerging economic opportunities.
Consequently, increasing allocations alone is insufficient. The effectiveness of education spending depends equally on the capacity to utilise resources efficiently and strategically. Greater transparency, stronger accountability mechanisms, improved planning, and evidence-based decision-making are essential if these increased allocations are to produce meaningful results.
The FY 2026�"27 education budget therefore represents a significant step forward, but it should be viewed as the beginning rather than the culmination of reform. Reaching approximately 2 per cent of GDP in education spending is an important milestone, yet Bangladesh still spends a relatively modest share of national income on education compared with many countries at similar stages of development.
Ultimately, the most important questions are not how much has been allocated but how effectively the resources will be used. How much will reach classrooms and learners? How much will improve learning quality? How much will strengthen teacher capacity? How much will reduce household costs? And how effectively will institutions utilise the funds entrusted to them?
The purpose of education financing is not simply to produce larger budget figures. It is to improve learning, expand opportunity, reduce inequality, strengthen human capabilities, and prepare citizens for productive and meaningful lives. If the increased investment leads to better learning outcomes, stronger educational quality, improved affordability, and greater equity, the FY 2026�"27 budget may be remembered as a turning point in Bangladesh’s educational development. If not, it risks becoming another example of increased spending without transformative impact.
The writer is a PhD Researcher at the Institute of Education and Research (IER), University of Dhaka
