Ten budget goals and the road to better healthcare

The proposed national budget allocates BDT 69,409 crore to the health sector, representing 1.02 per cent of GDP.

This marks a historic milestone, as Bangladesh has never before allocated more than 1 per cent of GDP to health. In the revised budget for FY 2025-26, the allocation stood at only 0.58 per cent of GDP.

Although the World Health Organization recommends allocating at least 5 per cent of GDP to health, this is the first time Bangladesh has proposed an allocation exceeding the 1 per cent threshold.

Furthermore, the health sector has been allocated 7.4 per cent of the national budget, another unprecedented achievement.

The 2026 budget identifies ten national development goals, each of which is directly or indirectly linked to the health sector.

A healthy population forms the foundation of a productive, prosperous, and developed nation. The unprecedented emphasis on healthcare in this budget reflects the government’s humane, visionary, and welfare-oriented approach to state-building.

Health is not merely a social service; it is a key driver of human capital development, economic growth, and sustainable development. The relationship between healthcare and the ten national goals is outlined below.

The first goal of the national budget is to establish an equitable and inclusive economy. Ensuring quality healthcare for the poor, women, children, the elderly, persons with disabilities, and marginalized communities is a prerequisite for inclusive development.

The increased health allocation aims to: Ensure universal and equitable healthcare; Shift from a treatment-oriented to a prevention-oriented healthcare system; Expand healthcare access to rural and marginalized populations; Strengthen maternal and child health, nutrition, and immunization services; and Promote health technology and the medical industry.

To make treatment more affordable, customs duties on dialysis filters used by kidney patients have been waived. A 10 per cent VAT exemption has also been provided for cardiac stents and intraocular lenses.
The budget also proposes: Increasing bed capacity in Upazila Health Complexes; Expanding maternal, newborn, child, reproductive, and physiotherapy services; andIntroducing a modernized MBBS curriculum by 2030.

Serious illnesses and healthcare expenditures often push families into poverty. To address this challenge, health insurance, maternity protection, elderly healthcare services, and treatment assistance for low-income populations have been recognized as essential components of the social protection system.

Universal healthcare coverage will reduce financial risks for citizens and strengthen the foundation of a welfare-oriented state and it has been identified as the 3rd priority.

A healthy workforce is a cornerstone of economic growth. Illness reduces working hours and productivity, while investment in healthcare creates employment opportunities for physicians, nurses, health workers, technologists, and professionals in the pharmaceutical industry.

The budget announces plans to recruit: 5,000 physicians, and100,000 healthcare workers. To promote the domestic medical equipment industry, import duties ranging from 5 per cent to 15 per cent have been proposed on certain imported raw materials.

At the same time, import duties on 51 raw materials used for producing Active Pharmaceutical Ingredients (APIs) have been completely withdrawn.As a result, the health sector itself can become a significant engine of economic growth.

A secure energy sector, the 7th goal of the budget plays a role in strengthening the healthcare system. Modern healthcare cannot function without reliable and uninterrupted energy supplies.

Virtually every critical component of healthcare delivery depends on electricity. Hospital services such as intensive care units (ICUs), operating theatres, laboratories, oxygen plants, and digital health systems require continuous and reliable power to operate effectively.

Renewable and environmentally friendly energy sources can further enhance the efficiency and sustainability of healthcare facilities. Critical systems such as ventilators, patient monitors, infusion pumps, anesthesia machines, surgical equipment, diagnostic imaging devices, telemedicine platforms, servers, cloud systems, billing software, and pharmacy management systems all depend on uninterrupted electricity.For this reason, every hospital must maintain IPS, UPS, and high-capacity generator backup systems to ensure that services are never interrupted, even for a second.

The 8th goal of the government is digital transformation and ICT development. Advances in information and communication technology support: Digital healthcare services, Telemedicine, Electronic health records, Artificial intelligence-based diagnostics, and Health information management systems. ICT development makes healthcare more accessible, efficient, and patient-centered while simultaneously fostering the growth of the health technology industry.

Due importance has been accorded to life, nature, and water resource management which constitute the 9th goal of the proposed budget. Health and the environment are deeply interconnected.

Safe water, sanitation, air quality management, climate change adaptation, and biodiversity conservation are all essential for protecting public health. Climate change is increasing the risks of dengue, heat waves, floods, and waterborne diseases. Consequently, the health sector must strengthen its capacity to respond to these emerging challenges.

Without good governance, transparency, and accountability, citizens cannot receive the quality healthcare they deserve. Merit-based recruitment, efficient management, anti-corruption measures, and accountable institutions are critical for improving healthcare quality.

A strong and transparent healthcare system increases public trust and enhances the effectiveness of public services. Therefore, transparent and accountable institutions have been identified as the 10th critical goal in the budget.