Bangladesh Economic Update, March 2015
The current issue of Bangladesh Economic Update aims at assessing the trend of public spending in connection with the allocations for social development – improvement in education, health, social security and welfare, and housing. The Update finds that on the one hand public spending assumes an increasing trend in Bangladesh, but yet the country lags far behind other developing countries in accumulating the public spending up to the mark in order to expedite economic growth and accelerate the declining rate of poverty. On the other hand, allocations of public spending for social sectors as percentage of the total programme spending have recently undergone decreasing trends signaling inadequate investments in social development and posing challenges to the formation of human capital in the country. The Update puts particular emphasis on the necessity of an effective fiscal management system that would help the government increase public spending and thus channel adequate resources to such sectors as education, health, social security and welfare, and housing, thereby ensuring the provision of public services and facilitating the formation of human capital in Bangladesh.