Bangladesh has reversed a three-year decline in water, sanitation and hygiene (WASH) development spending in FY2026-27, but the recovery is driven largely by urban infrastructure while rural delivery agencies face cuts, exposing persistent equity gaps in public investment, according to a joint policy review.
The analysis by Power and Participation Research Centre (PPRC) and WaterAid Bangladesh, presented in Dhaka on Tuesday with the Network of WASH Networks, shows WASH annual development programme (ADP) allocation rising 25 per cent to Tk13,618 crore in FY2026-27 from Tk10,901 crore in FY2025-26.
The increase follows a fall from a peak of Tk18,228 crore in FY2022-23.
Despite the rebound, the sector’s share of the total development budget rose only 0.13 percentage points, even as the national budget expanded 9.38 per cent and the ADP 3.16 per cent, indicating limited structural reprioritisation.
Urban systems continue to dominate the allocation structure. Around 72 per cent of total WASH ADP spending is directed to urban areas, with Water Supply and Sewerage Authorities (WASAs) receiving Tk6,673 crore, or nearly half of total sector allocation.
Dhaka WASA alone accounts for Tk5,010 crore, or about 36.8 per cent of total WASH spending, reflecting continued concentration in large capital-intensive urban water and sewerage projects.
In contrast, the Department of Public Health Engineering (DPHE), the principal rural service delivery agency, saw its allocation cut to Tk2,408 crore from Tk3,427 crore in FY2025-26, despite its mandate covering rural and hard-to-reach communities.
The imbalance sits against persistent national service deficits. According to Bangladesh Bureau of Statistics–UNICEF Multiple Indicator Cluster Survey 2025, about 41.8 per cent of the population lacks safely managed sanitation, while a similar share faces gaps in safe drinking water access, with rural coverage significantly lower than urban areas.
Geographic targeting shows similar asymmetry. The Chittagong Hill Tracts Regional Council saw allocation surge to Tk1,785 crore from Tk206 crore, signalling increased attention to access constraints in hill areas.
However, there is no dedicated allocation for haor regions, coastal funding has declined despite rising salinity intrusion, and char areas remain largely unaddressed in the budget structure, leaving key climate-vulnerable geographies outside targeted financing.
At sub-sector level, climate adaptation and risk reduction increased to Tk3,143 crore, faecal sludge management (FSM) to Tk1,904 crore and capacity building to Tk1,336 crore. Hygiene remains without a dedicated budget line, limiting traceability and weakening policy focus on behavioural health outcomes.
Policy experts said the absence of a separate hygiene allocation reduces accountability and weakens integrated WASH delivery, particularly in schools and low-income settlements where service gaps are most acute.
The brief also highlights structural financing gaps, including the absence of dedicated operation and maintenance (O&M) budgets, weak targeting of marginalised groups and no structured WASH cash support for ultra-poor households.
Among recommendations, the report calls for a dedicated climate-vulnerable WASH financing window covering coastal, char, haor, hill and drought-prone regions, alongside stronger and protected allocations for DPHE and expanded roles for local government institutions.
It also proposes a WASH allowance through social protection systems, expansion of gender-segregated school sanitation facilities and a shift from conventional canal-digging programmes towards surface water restoration in salinity-affected regions.
Speaking at the briefing, PPRC Executive Chairman Hossain Zillur Rahman said allocation increases alone are insufficient without stronger monitoring, clearer budget coding and improved implementation discipline, particularly in large infrastructure and maintenance-heavy projects.
