Bangladesh's health budget slashed by $750M, threatening dengue prevention efforts

Bangladesh's health sector faces a major funding crisis after the government slashed its budget for 2025-26. The revised Annual Development Programme (ADP) cuts Tk 8,129.50 crore from the original allocation, reducing the total to Tk 4,753.78 crore. The move has raised concerns over stalled projects, including efforts to combat dengue and improve urban health services.

The planning ministry justified the cuts by pointing to poor performance in the first half of the fiscal year. Both the Medical Education and Family Welfare Division and the Health Services Division struggled with low ADP implementation rates between July and December 2025. Officials blamed inefficiency within the agencies responsible for executing the projects.

The budget reduction will hit around two dozen projects, many focused on hospital construction and expansion. Among the hardest hit is the Improvement of Urban Public Health Preventive Services Project, which lost Tk 230 crore—its funding now stands at Tk 54.70 crore. This initiative, backed by a World Bank loan, includes mosquito control measures critical for dengue prevention.

Health experts have criticised the government for failing to address long-standing structural issues in the sector. They argue that weak leadership and the absence of skilled personnel have hindered project execution. Meanwhile, out-of-pocket healthcare costs have surged, rising from 55.9% of total expenditure in 1997 to 68.5% in 2020. Over the same period, government spending on health dropped from 36.1% to just 23.2%.

The revised budget leaves key health programmes underfunded, with dengue prevention and hospital infrastructure among the most vulnerable. Without additional resources or reforms, the cuts risk worsening service gaps and increasing financial strain on patients. Officials have yet to outline alternative plans to cover the shortfall.