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The proposed budget for the financial year 2025-26 contains Tk 41,908 crore in allocation to the health and family welfare sector. The allocation is 5.3 per cent of the proposed total budget worth Tk7.9 lakh crore.

Finance adviser Salehuddin Ahmed on Monday proposed the national budget for FY2025-26.


The proposed allocation to the sector in FY2025-26 is 1.03 per cent higher than the proposed budget of Tk 41,407 crore to the sector in FY2024-25.

Salehuddin hinted that free medical services would be provided to the poor population in the upcoming financial year to ensure their healthcare.

‘I propose allocating an additional Tk 4,166 crore for providing free medical services to the poor people,’ he said.

He also proposed that the existing duty concessions for the import of raw materials for all types of pharmaceutical products, including cancer drugs and active pharmaceutical ingredients, be expanded.

The speech highlights a focus on expanding services, upgrading infrastructure and hiring skilled personnel to achieve the universal health coverage by 2030.

Rashid E Mahbub, former president of the Bangladesh Medical Association, told ¶¶Òõ¾«Æ· on Monday that given the current inflation rate, the proposed health sector allocation had not really increased.

The Health Sector Reform Commission, formed by the interim government, has recommended that a 15 per cent of the national budget be allocated to the health sector.

The commission also recommended a zero VAT on the medicines for cancer, diabetes, high blood pressure, and listed antibiotics, along with a free access to essential medicines at primary health centres.

Commission member Syed Md Akram Hossain told ¶¶Òõ¾«Æ· on Monday that while the proposed health sector allocation remains inadequate for reform needs, it must increase over the next five years.

Appreciating the allocation for the poor patients, he said, ‘It’s a good start. But to make primary healthcare free for all, the sector needs greater funding.’

 In the proposed budget, the Health Service Division is set to receive Tk 31,022 crore. The amount comprises Tk19,405 crore for operational expenses and Tk11,617 crore for development.

In FY2024–25, the division was initially allocated Tk30,125 crore. The allocation was later revised down to Tk21,116 crore. The proposed allocation marks a nearly 3 per cent increase from the original and a 38 per cent increase from the revised budget for FY2024-25.

Rashid slammed the increased budget allocation to operational purposes, leaving patients’ interests neglected. He said, ‘A significant amount of the operational budget will be spent on salaries because of the dearness allowance of the public employees.’

In FY2024–25, the Medical Education And Family Welfare Division received Tk11,283 crore, which was later slashed to Tk6,807 crore. For FY2025-26, the finance adviser proposed Tk10,886 crore for the division.

The proposed allocation is 3.65 per cent lower than the original allocation for the outgoing year, but 37.48 per cent higher than the revised allocation.

The finance adviser proposed Tk 1,000 crore for the Expanded Programme on Immunization.

He also proposed a full exemption of value-added tax on the import and local purchase of materials and spare parts used in manufacturing hospital beds and continuation of existing VAT exemption on raw materials used for sanitary napkins and diapers until June 30, 2030.

His additional proposals include reducing duties and taxes on imported equipment and machinery for referral hospitals and for setting up hospitals with more than 50 beds.