• Friday, Oct 22, 2021
  • Last Update : 12:45 pm

Budget FY21: Wage, infrastructure, machinery major expenses in health budget

  • Published at 08:53 pm June 11th, 2020

Allocation reduced for personnel training

More than one-third of the total health budget will be allocated for paying wages while paying for infrastructure and machinery or equipment will also make a huge dent in it.

Finance Minister AHM Mustafa Kamal announced a health budget of Tk29,247 crore in the 2020-21 fiscal year to overhaul the country’s health sector overwhelmed by the coronavirus pandemic.

This upcoming health budget saw a 23% increase compared to the current fiscal year’s revised budget.

According to the proposed budget, the Health Services division would get a total of Tk22,883 crore, containing operating expenditure (Tk12,830 crore) and development expenditure (Tk10,053 crore from the Annual Development Program).

The Medical Education and Family Welfare Division will get a total of Tk6,363 crore for operating expenditure (Tk3,917 crore) and development expenditure (Tk2,446 crore).

From the ‘Demands for Grants and Appropriations 2020-21’, it can be seen that most of the allocated budget would be spent on wages, infrastructure development, machinery and equipment.

More than one-third of the budget would be spent on paying salary. 

Around 34% of the Health Services Division’s expenditure is allocated for paying wages, while the rate is 43% for Medical Education and Family Welfare Division’s expenditure.

For wages and salaries, administrative expenses, repair and maintenance, buildings and structures, lands, and machinery and equipment would account for 71% of the Health Services Division’s expenditure and some 66% of Medical Education and Family Welfare Division’s expenditure.

The two divisions will spend some Tk5,494 crore for medical and surgical supplies—Health Service Division Tk4,518.04 crore and Medical Education and Family Welfare Division Tk975.96 crore. The amounts are around 15% of the total amount allocated to each division.

Besides, the Health Service Division will spend Tk2,526 crore, some 8.74% of its budget, for machinery and equipment, while the other division will spend Tk449 crore, at about 7.16%.

Although the minister, in his speech, said the budget is focusing on human resource development, the government has allocated some Tk400.58 crore to Health Service Division and Tk203.97 crore to Medical Education and Family Welfare Division for personnel training.

Almost all the recurrent and capital expenditures have seen a rise while training is the only sector in the expenditure list which saw reduction of allocation in both the divisions.

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