Financing for equity in primary and secondary education
1. Education resources to subnational governments
2. Education resources to schools
3. Education resources to students and families
4. Social policies and family support programmes
Introduction
In Bangladesh, education financing is centrally managed. The Ministry of Finance (MoF) allocates the national education budget to two key ministries: the Ministry of Primary and Mass Education (MoPME), responsible for pre-primary and primary education (up to Grade 5), and the Ministry of Education (MoE), which oversees secondary and higher education. These ministries operate through their respective directorates - Directorate of Primary Education (DPE) for primary and Secondary, and Higher Education Division (SHED) for secondary.
Once funds are allocated, they flow through a top-down mechanism. The directorates distribute the budget to the district and Upazila education offices, which coordinate with schools. School Level Improvement Plan (SLIP)grants are directly transferred to school accounts to support small-scale needs. Stipends for students - especially girls and disadvantaged groups - are disbursed via mobile financial services. Local governments have a limited role, primarily in infrastructure support, while major financial and administrative decisions remain with the central authorities. Although some decentralisation efforts exist, overall financial control stays with the national government.
Furthermore, the government adopted the Climate Fiscal Framework (CFF) in 2014 and updated in 2020 to ensure that budget allocations address climate vulnerabilities and promote resilience across sectors, including education. According to the 2023–24 Climate Financing for Sustainable Development Budget Report, the Ministry of Primary and Mass Education Division and the Secondary and Higher Education Division demonstrate a marginal but steadily increasing commitment to climate-relevant budgeting.
1. Education resources to subnational governments
Formula-Based and Non-Formula-Based Transfers
Bangladesh employs both formula-based and non-formula-based transfers to allocate resources to local governments.According to the 2016 Public Financial Management Performance Report (PEFA), formula-based transfers account for just over 51% of all transfers from the central government to subnational entities, while the rest are distributed through discretionary grants or additional aid. Local governments may also submit development project proposals to the Planning Commission, which, if approved, receive co-financing from the central government, with final approval by the Executive Council of the National Economic Council.
2. Education resources to schools
Resource allocation to schools is primarily managed by the Ministry of Education (MoE) and the Ministry of Primary and Mass Education (MoPME) through annual budgetary provisions. Funding is distributed according to need, taking into account factors such as student enrolment, geographic disparities, and gaps in school infrastructure.
Fourth Primary Education Development Programme (PEDP4)
Launched in 2018, the Fourth Primary Education Development Programme (PEDP4) aims to reduce classroom overcrowding and support single-shift operations. The programme includes the construction of 50,500 classrooms, teachers’ rooms, and head teacher rooms. It also seeks to enhance water, sanitation, and hygiene facilities by building 58,000 gender-segregated and disability-accessible WASH blocks and installing 15,000 safe water sources. To support students’ recreational needs, play items will be provided to 10,000 schools, while 5,000 schools will receive boundary walls and gates for improved security. Routine maintenance will be carried out for 42,000 schools annually, with 23,000 schools and thousands of WASH blocks receiving yearly repairs to ensure continuous functionality.
3. Education resources to students and families
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4. Social policies and family support programmes
Bangladesh has implemented several conditional cash transfer (CCT) programmes to improve educational outcomes for children from low-income and marginalised communities.
Female Secondary School Assistance Programme (FSSAP)
Launched in 1994, FSSAP targeted unmarried girls in secondary schools. Beneficiaries received a stipend of Tk 906 for non-government schools and Tk 847 for government schools, paid directly into the girl’s bank account twice a year. Students were required to maintain at least 75 per cent attendance, achieve a minimum of 45 per cent in tests, and remain unmarried. The programme was administered by the Ministry of Education through the Directorate of Secondary and Higher Education. FSSAP has since concluded.
Harmonised Stipend Programme (HSP)
Started in 2018 as part of a consolidation of earlier programmes including FSSAP, the Harmonised Stipend Programme is ongoing as of 2025. It targets disadvantaged students, both girls and boys, in secondary and higher secondary schools, including madrasas, covering approximately 5.09 million students across all 64 districts. Students or their guardians receive an annual stipend of Tk 12,000 through direct digital transfer to bank or mobile financial accounts, paid quarterly so that the cumulative annual amount totals Tk 12,000. Eligible students must maintain a minimum of 75 per cent attendance, demonstrate satisfactory academic performance, and female students must remain unmarried. The programme is administered by the Prime Minister’s Education Assistance Trust under the Secondary Education Development Programme (SEDP).
Primary Education Stipend Programme (PESP)
Launched in 2002, PESP provides financial support to poor families with primary school-age children. Around 5.3 million beneficiaries receive stipends each year, with payments of Tk 100 per month for one student and Tk 125 per month for two or more students, paid directly to the guardian’s bank account on a monthly basis. Eligible students must maintain at least 85 per cent attendance and achieve a minimum of 40 per cent in examination marks. The programme is administered by the Department of Primary Education. PESP is currently in its third phase and remains active.
Reaching Out-of-School Children (ROSC)
Launched in 2004, ROSC targets out-of-school children in remote areas. Children or their guardians receive payments of Tk 100 per month or, alternatively, schools receive between Tk 25,000 and Tk 55,000 per year. Participation requires enrolment and attendance. The programme is administered by the Ministry of Primary and Mass Education and can support children for up to five years of primary education. The programme’s total costs are largely financed through external grants and credit, with only a smaller portion provided directly by the government. ROSC is currently in its second phase (ROSC II).
5. School meal programmes
Since 2011, the Government of Bangladesh, in collaboration with the United Nations World Food Programme (WFP), has been jointly implementing the ‘School Feeding Programme in Poverty-Prone Areas’.
Approved in 2019, the National School Meal Policy provides a framework for comprehensive school meals rather than single-item snacks, with the aim of improving both nutrition and educational outcomes for pre-primary and primary school children aged 3 to 12 years. The policy envisions a gradual introduction of cooked meals five days a week during school hours, complemented by fortified biscuits once a week.
All school meals are aligned with national nutritional guidelines to meet established dietary standards. Each meal is required to supply at least 30 per cent of a child’s daily calorie intake and 50 per cent of their daily micronutrient needs. To ensure dietary diversity, meals must include items from a minimum of four different food groups, including at least one animal-based food source.
To ensure long-term sustainability, the National School Meals Commitments stipulate that school meals will be formally integrated into the broader primary education strategy through inclusion in the fifth Primary Education Development Programme (PEDP5), which is scheduled to begin in July 2025. The programme also aligns with Vision 2041, which aims to provide free, nutritious meals to all students as a key component of inclusive and equitable education.
