Originally posted in The Business Standard on 4 June 2024
Good human capital relies on quality education and healthcare, yet budget allocations in these areas remain stagnant
Education, health and technological adaptation are all enabling factors for human development. We need to prioritise these areas in our budget planning.
Currently, the budget allocations for education and health are very low, with education receiving less than 2% and health less than 1% in the last budget. This is far below the standards for developing countries.
A study from last year showed that between 2016 and 2022, our average education expenditure as a percentage of GDP was the fifth-lowest among 41 least-developed countries (LDCs).
Most of these countries, 35 out of 41, spent at least 2% of their GDP on education. The situation is similarly poor in the health sector.
Good human capital relies on quality education and healthcare, yet budget allocations in these areas remain stagnant. The Ministry of Youth’s training and capacity development projects are inadequate, with some funds going unspent.
Although there are efforts to enhance skills in trade and technology and targets like employment in high-tech parks or skilling women in advanced technology, these initiatives are small and infrequent.
To achieve human development, we need a long-term integrated strategy.
First, we must increase the budget for education, focusing not just on university degrees but also on vocational training and practical knowledge relevant to the job market.
More vocational training centres are needed, especially in remote areas, and we must provide technological knowledge as well.
We also need to train our workforce going abroad for employment. Simply increasing the budget is not enough; we must ensure its proper use.
Quality training is more important than quantity, and this requires well-prepared trainers.
Additionally, the government has imposed a tax on imported foreign books, making it more expensive for those who wish to read, even as reading declines. The logic behind this tax needs reconsideration.
The 8th Five-Year Plan targets public spending on education to reach 3.5% of GDP by FY25, and the Prospective Plan for 2041 sets a target of 4%. These targets should guide our budget planning.
Dr Fahmida Khatun is the executive director of the Centre for Policy Dialogue (CPD).