HRD share up 6.7 percentage points in FY 27 budget

Human resource development (HRD) has received a major boost in the proposed FY2026-27 national budget, with its share rising by 6.72 percentage points to 27.69 per cent of total expenditure from 20.97 per cent in the revised FY2025-26 budget, reflecting the government's increased focus on education, healthcare and skills development.
Finance Minister Amir Khosru Mahmud Chowdhury unveiled the allocation as part of the proposed Tk 9.38 trillion national budget, signalling a stronger focus on social infrastructure, education, health and skills development.
The government has proposed allocating Tk 2.587 trillion for human resource development in FY27, which is Tk 934.53 billion higher than the revised allocation for the outgoing FY26.
According to budget documents, the proposed allocation accounts for 27.69 per cent of the total national budget, marking one of the highest shares ever dedicated to the sector.
Officials say the move reflects a policy shift by the Tarique Rahman-led government to prioritise investment in human capital after years of criticism over inadequate spending on education and healthcare.
For years, economists and international development institutions have pointed to the chronic underfunding of Bangladesh's social sectors, arguing that low investment in human capital has constrained productivity and long-term economic growth.
Data from the Ministry of Finance show that allocations for human resource development accounted for between 20 per cent and 25 per cent of the national budget over the past five years.
In the revised FY26 budget, the government allocated Tk 1.65 trillion for human resource development, equivalent to 20.97 per cent of total expenditure.
The corresponding shares were 20.88 per cent in FY25, 22.14 per cent in FY24, 22.60 per cent in FY23 and 24.73 per cent in FY22.
A senior finance ministry official said the government aims to build a healthier, more skilled and productive workforce capable of supporting sustained economic growth.
"Investment in quality education, healthcare and skills development is essential for building a resourceful nation," the official said.
The proposed FY27 budget has therefore set aside Tk 2.587 trillion for developing the country's human resources, with particular emphasis on education, healthcare and technical training.
Another official said higher allocations have been proposed for primary, secondary and tertiary education, as well as for strengthening healthcare services and expanding technical and vocational education.
Bangladesh continues to lag behind many comparable countries in public spending on education and health, a factor that analysts say has affected the competitiveness of its workforce in both domestic and international labour markets.
"If we want to build the nation, we must invest in our people. The government has taken that consideration seriously in framing the FY27 budget," the official added.
The human resource sector has also received the largest share of the Annual Development Programme (ADP), securing Tk 1.284 trillion, or 42.8 per cent of total development spending.
The biggest beneficiaries of the increased allocation are the education and health sectors.
Funding for education has risen by more than 56 per cent to Tk 1.366 trillion, equivalent to around 2.0 per cent of gross domestic product (GDP).

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