Adequate investment in human capital development is critical for enabling Bangladesh to reach its goal of becoming an upper middle-income country. Bangladesh, currently a lower-middle country with an annual per capita gross national income (GNI) of USD 1,470 (WDI 2019), aims to attain upper-middle income status by 2021 and eliminate poverty by 2030. Recognizing the importance of investing in education for building its human capital base, the government of Bangladesh (GoB) has been allocating a large portion of the national budget to the education sector each year during the past two decades. Effective utilization and equitable distribution of allocated public spending is important for ensuring adequate progress in education outcomes. This report analyzes major spending and outcomes trends in the overall education sector in recent years, with a focus on primary and secondary education. Responding to the recommendation of the 2015 Bangladesh Public Expenditure Review Update for more analytical work on public spending in different sectors, including education, the current study analyzes the trends in major education expenditures, access to education, quality of education, and disparities in education outcomes in the past two decades. It also looks at the composition of education expenditure, consistency between budget allocations and actual expenditures, equity in education spending, and potential links between spending and key educational outcomes. Because of data limitations, this report focuses mainly on primary and secondary education. It is expected that this analysis will add to the literature on investments in the Bangladesh education sector and inform discussions on identifying policy priorities and making resource allocation decisions in the sector.

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