Higher allocations for health, education and social protection in the proposed FY2026-27 budget could provide greater support to vulnerable groups, but economists and development experts warned on Monday that weak implementation capacity, ambitious revenue targets and persistent inflation may limit the impact of those measures.
The observations came at a media briefing titled “National Budget 2026-27: What Is in It for Disadvantaged People?” organised by Citizen’s Platform for SDGs, Bangladesh at BRAC Centre Inn in Dhaka.
Presenting the keynote paper, Citizen’s Platform Convener and economist Debapriya Bhattacharya said the budget contained several positive policy commitments but rested on a fragile financial foundation.
“The policy framework contains several positive commitments, but the financial structure supporting it remains weak,” he said, arguing that inflation, slow wage growth and declining household savings were creating a triple burden for low- and middle-income families.
He said increased allocations for health, education and social protection signalled greater attention to social sectors, but warned that governance, institutional capacity and accountability would determine whether those benefits reached intended recipients.
Questions over the budget’s underlying assumptions were also raised by Centre for Policy Dialogue Additional Research Director Toufiqul Islam Khan, who said the government’s Tk6,95,000 crore revenue target and investment projections appeared difficult to reconcile with prevailing economic conditions.
He said inconsistencies within official budget documents themselves raised concerns about planning quality and could complicate implementation during the fiscal year.
Tax expert Snehasish Barua welcomed the increase in the tax-free income threshold to Tk375,000 from Tk350,000 and tax exemptions for entrepreneurs with disabilities earning up to Tk7 million annually. He also cited incentives for donations to selected charitable organisations as positive measures.
However, he warned that generating nearly Tk200 billion in additional revenue would be challenging and that any shortfall could ultimately affect development spending.
One of the budget’s most significant proposals was a sharp increase in health-sector allocations, according to Dhaka University health economist Shafiun Nahin Shimul.
He welcomed the emphasis on preventive healthcare, additional support for poor patients suffering from complex diseases and lower taxes on pharmaceutical raw materials and medical devices.
At the same time, he cautioned that nearly 60 per cent of the health allocation had been kept as block allocations, which have historically faced utilisation challenges.
“People in Bangladesh still pay more than 70 per cent of healthcare costs out of pocket,” he said, noting that medical expenses continue to push many households into poverty.
Concerns were also raised about access to safe drinking water. WaterAid Bangladesh Head of Policy Advocacy Fayazuddin Ahmad said the budget lacked targeted initiatives for water-stressed regions such as hill tracts, char and haor areas despite a recent High Court ruling recognising access to safe water as a constitutional right linked to the right to life.
He criticised the concentration of resources on large urban water projects while many poorer and marginalised communities continued to face inadequate water and sanitation services.
Education advocates welcomed higher spending and the government’s plan to raise education expenditure to 5 per cent of GDP over the next five years. However, Cholo Pori founder Zarin Mahmud Hossain said digital initiatives would remain ineffective without reliable electricity, internet connectivity and teacher training.
Participants also highlighted the continued exclusion of child labourers, indigenous children, urban poor children and students with disabilities from mainstream education opportunities.
The overarching message from the briefing was that larger budget allocations alone would not guarantee better outcomes for disadvantaged groups.
Speakers urged the government to strengthen transparency, improve local delivery systems, reduce leakages and ensure social protection programmes were targeted more effectively.
Citizen’s Platform said it would continue monitoring implementation through its proposed Reform Tracker initiative, parliamentary engagement and public accountability activities.
