Budget FY27: Record Health Layout; Defense, Youth Boosted as Info Slashed

Finance and Planning Minister Amir Khosru Mahmud Chowdhury on Thursday placed a historic BDT 9.38 lakh crore national budget for the fiscal year 2026-27 (FY27) in the National Parliament. 

The fiscal blueprint outlines significant financial layouts across crucial state sectors, highlighted by a record-breaking doubling of the healthcare budget, robust increases for defense, youth and sports, and a streamlined approach to information and broadcasting.

Health Budget Nearly Doubles with Focus on Grassroots Infrastructure

In the most dramatic shift of the fiscal package, the Finance Minister proposed a record allocation of BDT 69,409 crore for the Ministry of Health and Family Welfare. 

This nearly doubles the revised allocation of BDT 35,477 crore in FY25-26, as the BNP government moves aggressively to implement major health-sector pledges outlined in its election manifesto.

Placing the national budget in the parliament, the Finance Minister explained that the proposed health allocation will account for 1.01 percent of the country's Gross Domestic Product (GDP), up from 0.58 percent of GDP in the revised budget of the outgoing fiscal year.

“I propose an allocation of BDT 69 thousand and 409 crore for the Ministry of Health and Family Welfare in the fiscal year 2026-27, which is equivalent to 1.02 percent of GDP. In the revised budget for fiscal year 2025-26, the allocation for this sector was BDT 35 thousand and 477 crore, representing 0.58 percent of GDP,” the Minister told parliament.

Chowdhury described the massive cash injection as the first major step towards fulfilling the BNP government's electoral commitment to gradually raise health spending to 5 percent of GDP within the next five years.

“Building a healthy nation is the prerequisite for sustainable development and a prosperous Bangladesh,” he said, adding that years of neglect, corruption, political interference and lack of accountability had weakened the country's healthcare system.

Transition to Preventive Care, Health Cards and Recruitment Drives

Outlining the government's policy direction, Khosru said the administration aims to transform Bangladesh's healthcare system from a treatment-centred model to a prevention-focused one. 

This will be achieved by strengthening primary healthcare, expanding immunisation, improving maternal and child health services, enhancing nutrition programmes, and ensuring early detection of non-communicable diseases.

Grassroots Care: The government plans to establish modern primary healthcare units in every union and urban ward. Each unit will be supported by three community clinics providing preventive healthcare, maternal and child services, nutrition support, and primary medical care.

Digital Health Cards: A nationwide digital Health Card system will be introduced under universal health coverage. Linked to an Integrated Patient Management System and Referral System, this platform will allow healthcare providers across the country to instantly access patients' medical histories, prescriptions, and diagnostic records.

Secondary Care Reorganization: District hospitals and upazila health complexes will be integrated into comprehensive healthcare units. Complex surgeries and specialised treatment will be concentrated at district headquarters hospitals, supported by a newly established National Ambulance Pool and Emergency Services Network.

Immunisation & Personnel Expansion: The government will continue strengthening immunisation programmes, building on its first 100 days in office where it successfully administered measles-rubella vaccines to nearly all eligible children following a nationwide outbreak. To support this workforce, the recruitment of 5,000 MBBS doctors has begun alongside the process of hiring 100,000 additional health workers—approximately 80 percent of whom are planned to be women.

Educational & Pharma Reforms: Medical education will see the introduction of a modern competency-based MBBS curriculum by 2030, enhanced use of artificial intelligence in training, and an expansion of nursing and midwifery education. Concurrently, the budget outlines support for pharmaceutical exports, the development of an Active Pharmaceutical Ingredient (API) industrial park, and initiatives to develop a domestic medical equipment manufacturing industry.

Calling healthcare investment a cornerstone of human resource development, Khosru said the increased allocation marked “the beginning of a people-centred, accountable and future-oriented healthcare system.” He added that the proposed budget seeks not only to improve services but also to ensure that “no poor family is ruined by the cost of medical treatment.”

Defence Sector Receives BDT 42,497 Crore Layout

To maintain territorial integrity and bolster national security infrastructure, a total of BDT 42,497 crore has been proposed for the Ministry of Defence for FY2026-2027.

This financial layout marks an increase of BDT 1,835 crore compared to the BDT 40,662 crore allocated in the revised budget of the outgoing FY2025-2026. 

The Finance Minister presented this allocation as part of the government's ongoing effort to modernise the armed forces.

Youth and Sports Ministry Allocation Raised by BDT 782 Crore

Reflecting the government's policy priority on youth empowerment, employment generation, and athletic development, the Ministry of Youth and Sports has been allocated BDT 2,586 crore in the proposed budget.

This funding represents a significant boost of BDT 782 crore over the revised allocation of BDT 1,804 crore in the FY2025-2026 budget. 

The increased funding is intended to complement ongoing projects, including freelancing and language skills training, to create a highly capable local youth workforce.

BDT 1,190 Crore Proposed for Information and Broadcasting Ministry

Conversely, the government has streamlined its spending on state media apparatuses and public information. A total of BDT 1,190 crore has been proposed for the Ministry of Information and Broadcasting for the upcoming FY2026-2027.

(Note: While the initial BSS bulletin title mentioned BDT 1,110 crore, the official budget documentation placed in parliament explicitly allocates BDT 1,190 crore). 

This layout is BDT 33 crore less than the revised allocation earmarked for the ministry in the FY2025-2026 fiscal package.