Public spending on education in Bangladesh has slipped to about 1.7 per cent of gross domestic product (GDP), far below global standards, prompting fresh concern among policy experts about the country’s ability to build the skilled workforce needed for the future.
The findings were presented by economist Towfiqul Islam Khan, additional director (research) at the Centre for Policy Dialogue (CPD), at a discussion organised by the Citizens' Platform for SDGs, Bangladesh.
The event, titled “Education for Tomorrow in Light of the Election Manifesto: New Thinking, New Structure and New Initiatives,” examined the current state of education financing and the policy direction needed to strengthen the sector.
Spending far below the global benchmark
According to the CPD analysis, the actual utilisation of education spending dropped further to around 1.3 per cent of GDP in fiscal year 2025.
This is significantly lower than the 4-6 per cent of GDP benchmark recommended by UNESCO for countries seeking to build strong and inclusive education systems.
Researchers said the gap reflects a persistent mismatch between policy commitments and real budget allocations.
While successive government documents have described education as a national priority, the ambition in budgetary terms has gradually weakened over time.
The country’s Sixth Five-Year Plan once set a target of raising education spending to 4 per cent of GDP by 2015. But that target has repeatedly been pushed back in later policy frameworks.
Under the current Perspective Plan 2041, the goal of reaching 4 per cent of GDP in education spending has effectively been deferred to 2041.
Limited fiscal space
The study points to Bangladesh’s limited fiscal capacity as a major barrier to expanding public investment in education.
Bangladesh’s tax-to-GDP ratio stood at only 6.8 per cent in FY2025, one of the lowest in the region. Economists say such a narrow revenue base leaves little room for large increases in social sector spending.
As a result, the education sector has struggled to secure greater public investment despite growing demand for better schools, universities and technical training.
The analysis also found that development spending in education has declined sharply in recent years. Instead, operating expenditures such as salaries and administrative costs now dominate the sector’s budget.
While these expenditures are necessary to keep institutions running, experts warn that declining development spending can slow progress in improving infrastructure, technology, research and curriculum reform.
A warning for the future
Researchers cautioned that underinvestment in education could have long-term consequences for Bangladesh’s economic transformation.
As the labour market evolves with technological change, countries increasingly need a workforce equipped with higher levels of skills, innovation and adaptability.
Without stronger investment in education, Bangladesh could struggle to prepare its population for that transition.
The CPD analysis stressed that strengthening the education system will require a combination of stronger domestic resource mobilisation, improved spending efficiency and better programme management.
It recommended gradually increasing education spending to around 5 per cent of GDP by 2031 through improved budget execution and expanded fiscal capacity.
Policy analysts at the event warned that the country’s demographic advantage could weaken if the education system fails to keep pace with economic change.
For Bangladesh, they said, the challenge is not only to expand education access but also to ensure adequate financing that can support quality learning, skills development and research in the decades ahead.