Repurposing Agricultural Public Spending for Quality Growth and Jobs in Bangladesh’s Agrifood System : Policy Brief

Overview & Synopsis

Agriculture remains central to Bangladesh’s economy, jobs, and food security, but the sector has been losing momentum in recent years and public spending needs to be realigned to address emerging challenges. It employs nearly half of all workers and contributes over one‑tenth of gross domestic product (GDP), making it critical for growth, poverty reduction, and rural livelihoods. It can do more to create better jobs, raise incomes, and drive rural transformation through diversification and stronger links to processing, services, and markets. Yet productivity growth has slowed, diversification remains limited, and climate risks and changing food demand are exposing weaknesses in current policies. Public spending remains heavily concentrated on recurrent input subsidies and related policies that have reinforced rice-focused production patterns and no longer fully match the sector’s evolving needs. This study looks at where agricultural public spending is going, what it is achieving, and how it can be used more effectively to deliver better results for farmers and the economy.