Govt Unveils Massive Education Boost and Medical Student Loans in New Budget

The newly formed government has unveiled a massive BDT 9.38 lakh crore national budget for the 2026–2027 fiscal year, introducing sweeping financial allocations and pioneering loan schemes aimed at revolutionizing both primary education and the health education sector.

Placing the budget in the parliament, Finance and Planning Minister Amir Khosru Mahmud Chowdhury announced a major structural overhaul for the country's medical and dental education system. 

To make higher healthcare education more inclusive, the government is set to introduce dedicated student and bank loan facilities. 

Furthermore, a special financing scheme will be launched to support talented students pursuing higher medical studies abroad, ensuring that financial constraints no longer hinder academic advancement. 

This initiative aligns with a broader reform strategy that features a BDT 69,409 crore allocation for the health sector—nearly doubling the previous fiscal year’s revised budget of BDT 35,477 crore. 

The funds will be utilized to modernize government medical colleges, upgrade older medical campuses, and revamp academic buildings, dormitories, laboratories, and training infrastructure for trainee physicians.

Simultaneously, the proposed budget has allocated BDT 46,738 crore for the Ministry of Primary and Mass Education, marking a substantial increase from the outgoing financial year’s revised budget of BDT 31,781.82 crore. 

Out of this total primary education funding, BDT 25,297.34 crore has been earmarked for operational expenditure, while BDT 21,440.58 crore is set aside for development spending. 

A central pillar of this allocation is the implementation of the Fifth Primary Education Development Programme (PEDP-5), which aims to fulfill the new BNP government's electoral commitments by building a smarter, technology-driven elementary schooling system.

To elevate primary schooling to international standards, the government plans to completely revise the pre-primary and primary curriculum, alongside streamlining the preparation, printing and free distribution of updated textbooks. 

The budget also addresses student welfare by prioritizing health and nutrition through a nationwide expansion of the School Feeding Programme to boost attendance and curb dropout rates. 

Additionally, primary student stipends will continue into the next fiscal year. Infrastructure development remains a core focus, with extensive plans outlined for need-based renovations of existing government primary schools, alongside the targeted construction of brand-new school facilities across Dhaka city and Purbachal.