TUHIN SHUBHRA ADHIKARY

The health sector received the biggest boost in the proposed national budget for the next fiscal year, with a sharp increase in allocation and a package of tax concessions aimed at lowering healthcare costs for ordinary people.

Finance Minister Amir Khosru Mahmud Chowdhury proposed raising the health ministry’s allocation to Tk 62,852 crore, up 50 percent from this year’s original budget and 124 percent from the revised budget.

Of the total allocation proposed, Tk 35,026 crore has been earmarked for the development budget and Tk 27,826 crore for the operating budget.

Of the Tk 35,026 crore development allocation, Tk 23,522 crore has been kept as a block allocation, suggesting that the government may undertake new projects to fulfil its election pledges.

Separately, around Tk 6,557 crore has been earmarked for health-related activities under other ministries.

This brings the total health budget to Tk 69,409 crore, which is equivalent to 1.01 percent of GDP -- marking the first time that it has crossed this threshold.

Among all sectors, the health budget recorded the highest year-on-year increase, according to the budget document.

Health economists and sector insiders welcomed the move, saying it signals a stronger policy focus on healthcare after years of relatively low public spending.

The development is in line with the ruling party’s electoral manifesto, where the party promised to increase the health budget to 5 percent of GDP gradually.

Implementing such a large budget would be a major challenge given the health ministry’s poor track record in utilising its development budget, said Shafiun Nahin Shimul, professor and director of the Dhaka University’s Institute of Health Economics.

For instance, in the first 10 months of this fiscal year, the two divisions of the health ministry could not spend one-tenth of their development budget.

Inefficiency, corruption and bureaucratic hurdles often delay project implementation, and the new government would need to overcome these obstacles to ensure that the allocated funds are spent effectively, he said.

“Otherwise, people will not benefit from the substantial

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