Will an increase of 27% be enough to address the challenges of the education sector? Experts doubt

The government has proposed a significant 27% increase in funding for the education sector in the budget for the coming financial year. This is a significant increase from the Tk 74,597 crore allocated in the revised budget for FY24, with the new proposal reaching Tk 94,711 crore.

However, education experts have expressed concerns that the increase is insufficient to address the challenges facing the sector, especially given rising inflation and the rising costs of educational materials.

Additionally, they criticized the proposed 20% withholding tax on savings interest, up from the current 10%, for public universities and MPOs (institutions receiving government subsidies).

Experts believe the additional taxes could negatively impact teachers’ ability to perform daily classroom duties at some 57 public universities and more than 29,000 MPOs, including schools, in the country.

“Due to the rising cost of living, teachers, like any other profession, are already struggling financially. Increasing the source tax on savings from 10% to 20% now is like adding insult to injury,” said Dr Mohammad Ali Zinnah, professor at the University of Dhaka Institute of Education and Research.

“The ongoing attempt to include teachers in the general pension system has already caused public dissatisfaction. If the government now focuses on their savings, it will likely lead to a negative psychological reaction, potentially making it harder for them to fully devote themselves to their classroom responsibilities,” he explained.

He added that if most teachers are forced to take on additional work outside of teaching to cover their living costs, this will inevitably reduce the attention they can give to their students.

The need for increased financing is further emphasized by rising inflation in the education sector itself. According to the Bangladesh Bureau of Statistics, education inflation reached 5.73% in May 2024, up significantly from 4.58% in the previous month.

A recent study by Education Watch, a civil society research platform, sheds light on the additional financial burdens placed on families. Their findings show that in the first half of 2023, spending on external secondary education increased by 51%, while spending on primary education increased by 25%.

The study attributes this increase to the perceived inadequacy of classroom teaching, which causes students to rely on expensive private lessons, coaching centers and guides.

UNESCO’s Global Education Monitoring Report 2022 further notes the financial burden on families, finding that families in Bangladesh contribute a staggering 71% of total education expenditure.

The budget division proposed on Thursday (June 6) indicates an increase in funds at individual levels of education in response to these challenges.

An amount of Tk 38,819 crore has been allocated for primary education as against Tk 30,481 crore in the revised budget for the current financial year.

Secondary and higher education saw an increase to Tk 44,109 crore from Tk 34,132 crore.

Technical and madrasa education also received support with an allocation of Tk 11,783 crore as against the previous Tk 9,984 crore.

However, University of Brac professor Dr. Mohammad Kaykobad told TBS: “The increase in sectoral allocation is minimal, especially considering the rising costs of living and educational materials. Moreover, the allocation remains below 2% of GDP, which shows that education is not receiving the priority it deserves.”

“A skilled and educated workforce is essential if we are to achieve our goal of becoming a developed, middle-income country. “The current level of education funding is simply not fit for purpose to achieve these goals,” he added.

The education budget accounts for 11.9% of the total budget, which is less than the 20% recommended by UNESCO. It remains at 1.7% of GDP, i.e. below the 4-6% suggested under the “Education 2030” measure.

Over the past two decades, the education budget has consistently fallen below 2% of GDP.

Compared to other South Asian countries, Bangladesh ranks second in education spending, trailing only Sri Lanka.

According to the latest World Bank data, Bhutan is the leader in the region with 8.14% of GDP invested in education (2022). The Maldives (4.58%), Nepal (3.65%) and Pakistan (1.97%) allocate a much larger share of their GDP to education. Even India allocated 4.64% of GDP in 2021 while Afghanistan allocated 4.34% in 2017.

In an additional effort to support education, the government also focused on improving student nutrition. During the presentation of the state budget for FY25 yesterday, Finance Minister AH Mahmood Ali announced that under the ‘School Feeding in Poverty-Stricken Areas’ project, school feeding program has been completed for over 27 lakh students in 104 upazilas.

Subsequently, a new project was undertaken to launch the ‘School Feeding Program’ in all primary schools in 150 upazilas in the country.