Education remains the most powerful tool for individual empowerment and societal transformation. In a country like Bangladesh, where more than a third of the population is under 25, investment in education is not just a moral imperative-it is a strategic necessity. The fiscal year 2025-26 budget offers a critical opportunity to reflect on the government's priorities in this regard. This year's allocation to the education sector stands at Tk95,644 crore, marking a 27% increase from the revised Tk74,597 crore in FY 2024-25. In percentage terms, education now commands 12.1% of the total national budget and 2.1% of the Gross Domestic Product (GDP).This upward revision, while encouraging, raises fundamental questions about whether the allocation is sufficient to address the deep-rooted structural and qualitative challenges that continue to plague Bangladesh's education system.
A closer examination of the budget breakdown shows a clear attempt at supporting a balanced approach across different educational levels. Of the total education allocation, the Ministry of Primary and Mass Education has received Tk35,403 crore, the Ministry of Education's Secondary and Higher Education Division is allocated Tk47,563 crore, and the Technical and Madrasa Education Division is granted Tk12,678 crore. This distribution suggests a continued emphasis on foundational and secondary education while also recognizing the growing need for skills-based technical education and inclusivity through religious schooling.
Despite this substantial increase in nominal terms, Bangladesh's investment in education remains far below international benchmarks. UNESCO recommends that countries allocate 4-6% of their GDP and 15-20% of their national budget to education. By comparison, Bangladesh's education spending remains stagnant at just around 2% of GDP. Even the revised 11.9% of the national budget, while an improvement from previous years, falls short of the levels necessary to drive transformational change. Neighboring countries present more encouraging figures. Bhutan, for instance, invests over 8% of its GDP in education, while the Maldives allocates 4.58%. These comparative figures underscore the structural underinvestment in Bangladesh's education sector and highlight a critical policy gap.
One of the most pressing issues facing the education budget is not merely how much is allocated, but how much is actually spent. Historically, 15-20% of the education budget remains unutilized each year. This recurring under-expenditure is often attributed to administrative inefficiencies, project delays, and inadequate capacity at local and institutional levels. When essential funds meant for infrastructure, teacher recruitment, curriculum development, and technology integration go unspent, the potential benefits of budgetary increases are severely undermined. The need to enhance absorptive capacity-especially at the Upazila and school levels-cannot be overstated.
Another contentious point in this year's budget is the introduction of a 20% source tax on savings interest for public universities and Monthly Pay Order (MPO) institutions. This is double the previous rate and has sparked concern among educators and university administrators. Teachers' associations have argued that this will discourage academic savings, erode financial autonomy, and further complicate the already tenuous financial conditions faced by public institutions. More importantly, the policy risks demoralizing educators, many of whom already contend with inadequate salaries, limited career progression, and resource constraints. If the goal is to improve the quality of education, disincentivizing the teaching profession is a regressive step.
There is also growing concern about the continued fragmentation within the education system. Bangladesh's education landscape is divided into distinct streams: Bengali-medium general education, English-medium private education, and madrasa education. This segmentation reinforces social divisions and perpetuates inequality. For example, students in English-medium institutions often have better access to global opportunities and higher education, while madrasa students, despite receiving religious education, often struggle to integrate into mainstream employment markets. Experts have long called for an integrated, inclusive national curriculum that reduces disparities and fosters a common national educational standard while respecting diversity. However, the current budget does little to address these structural divisions.
Equity remains a significant challenge, particularly in rural and climate-affected regions. In the coastal and haor areas, frequent flooding and displacement disrupt schooling for thousands of children. Urban slums, meanwhile, are plagued by overcrowded classrooms and lack of qualified teachers. While the budget does mention increased allocations for infrastructural improvements, the absence of a targeted approach for climate-resilient and context-sensitive education infrastructure is a glaring omission. Given Bangladesh's vulnerability to climate change, integrating educational resilience into national planning is both timely and essential.
In light of these challenges, several strategic actions are imperative if Bangladesh is to maximize the effectiveness of its education budget. First, there must be a long-term commitment to increasing the overall size of the education budget, aligning it progressively with UNESCO guidelines. This commitment must go beyond electoral cycles and become part of the nation's broader development vision. Second, administrative and institutional capacities must be strengthened to ensure timely disbursement and utilization of funds. Decentralization and local capacity building-particularly in rural and disadvantaged areas-will be key to ensuring that funds translate into tangible improvements.
Third, the government must review its taxation policies, especially those affecting educators and academic institutions. Creating an enabling environment for teachers is fundamental to educational quality. Better salaries, professional development opportunities, and financial incentives for remote postings can attract and retain quality teachers. Fourth, reforms must be undertaken to address disparities across the three major educational streams. This includes developing a unified national curriculum, improving equivalence across streams, and ensuring all students are equipped with critical thinking and job-relevant skills.
Finally, a renewed emphasis must be placed on the quality of education. Merely increasing enrollment rates is no longer sufficient. The focus must now shift to improving learning outcomes. This means investments in teacher training, digital learning tools, updated textbooks, student assessment reforms, and safe learning environments. Moreover, the integration of life skills, climate education, and gender-sensitive approaches should be central to curriculum development.
In conclusion, the FY 2025-26 budget represents a step forward in acknowledging the importance of education in Bangladesh's national development. The increase in allocation sends a positive signal, but it remains far from sufficient when measured against both the needs of the population and global standards. More importantly, meaningful transformation will depend not just on how much is spent, but how wisely and equitably it is spent. The education budget must be viewed not merely as an expense, but as the most strategic investment in the country's future-one that determines whether Bangladesh can truly harness its demographic dividend and build a just, prosperous, and knowledge-based society.
The writer is a PhD Researcher and former Country Representative of the Malala Fund
