Health and social protection allocations slashed by 74%

Bangla Press Desk:  The Planning Commission has finalised an Annual Development Programme (ADP) worth Tk2 trillion after cutting Tk300 billion. The biggest reductions—up to 74 per cent—have been made in the health and social protection sectors. Major cuts have also affected education, transport, religion and agriculture, while allocations have been increased for the environment, local government, and science and technology.

The revised ADP was approved at an extended meeting of the Bangladesh Planning Commission held on Monday (5 January) at the NEC conference room in Sher-e-Bangla Nagar, chaired by Planning Adviser Wahid Uddin. Of the total Tk2 trillion, Tk720 billion will come from foreign loans and Tk1.28 trillion from the government exchequer. The Chief Adviser is set to approve the revised ADP at a meeting of the Executive Committee of the National Economic Council (ECNEC) on 12 January.

Explaining the sharp cut in the health sector, a secretary of the Planning Commission said the government had decided to cancel the sector’s largest programme as it was not proving sufficiently effective. The programme is now being implemented as separate projects, resulting in reduced allocations. Funding was cut after it was announced that progress was too slow to justify spending the allocated amounts.

A comparison between the ADP for fiscal year 2025–26 and the Revised ADP (RADP) shows significant changes in allocations for the 15 highest-funded ministries and divisions. While some sectors have seen notable increases under the RADP, several key social sectors have suffered substantial cuts.

Under the RADP, the Ministry of Water Resources has received the highest allocation, with funding increased by 28 per cent. The Local Government Division has seen an 8 per cent rise. These two sectors are the main beneficiaries of increased funding.

The steepest reductions at the ministry and division level—up to 77 per cent—have been made in health, education and family welfare. Allocations to the Health Services Division have been cut by 73 per cent, while funding for secondary and higher education has fallen by 55 per cent. Other cuts include electricity (27 per cent), primary education (29 per cent), shipping (36 per cent), railways (36 per cent) and agriculture (36 per cent).

Sector-wise analysis shows that health and social protection, along with education-related sectors, have faced the largest reductions. Funding for health education has been slashed by 74 per cent—the highest reduction among the 15 ministries and divisions—followed by social protection at 73 per cent. Education, transport and religious affairs have each seen cuts of 35 per cent. Allocations for road transport, a key infrastructure sector, have been reduced by 38 per cent.

Overall, the environment, climate change and water resources sector has recorded the largest increase under the RADP compared with the ADP, at 20 per cent. In contrast, the health sector has suffered the largest cut at the sector level, with a 74 per cent reduction.

Urban transport projects have been hit particularly hard, especially metro rail schemes. Funding for the Metro Rail Line-1 project has been cut by nearly 91 per cent, falling from Tk86.31 billion to just Tk8.01 billion. The Kishoreganj elevated road project has seen a reduction of more than 95 per cent, while allocations for the Meghna–Dhonagoda Bridge project on the Matlab North–Gajaria road have been cut by around 97 per cent. Officials fear these cuts could slow road connectivity improvements in the northern and eastern regions.

Funding for the Matarbari Port Development Project has been reduced from Tk40.68 billion to Tk10.85 billion. Similarly, allocations for the expansion of Hazrat Shahjalal International Airport have fallen from Tk10.39 billion to Tk3.06 billion. The Bus Rapid Transit (BRT) project has also seen a sharp reduction, from Tk4.25 billion to Tk1.68 billion. Funding for the conversion of the Chattogram–Dohazari metre-gauge railway line to broad gauge has been cut by nearly 98 per cent.

Allocations for social protection and urban development projects have also been significantly reduced. Funding for the food programme for primary school students has been cut by around 50 per cent. The Dhaka Sanitation Development Project has seen a reduction of more than 41 per cent, while allocations for preventive public health services in urban areas have been cut by over 80 per cent.

Economists warn that although some reductions are understandable amid revenue constraints, such deep cuts in health and higher education could have a negative impact on human resource development in the medium term. They caution that university research, healthcare infrastructure and innovation capacity may decline, ultimately harming long-term productivity.

Officials involved in the RADP process said many projects are progressing more slowly than expected, foreign aid disbursements are being delayed, and pressure on foreign exchange reserves is increasing. Rising debt servicing costs have also forced the government to rein in development spending.

Commenting on the issue, Dr Fahmida Khatun, Executive Director of the Centre for Policy Dialogue (CPD), said it was “disappointing” that allocations were being cut at a time when spending on health, education and social protection should have been increased. She noted that higher investment in these sectors accelerates human resource development, raises household incomes, and ensures that additional resources reach poorer communities through development projects.

BP/SP