This study strives to ascertain the financial and nonfinancial challenges of higher education budget for human resources development (HRD) based on both primary and secondary sources of data. Inadequate budgetary support from the government and inappropriate implementation of the same due to nonexistence of good governance and inefficient utilization of allocated amount due to session jam, unemployment, and job nature of the graduates are the major challenges of higher education budget in Bangladesh. Similarly, poor planning and inefficient implementation, slavish national politics in higher educational institutions, priority of political attachment and even political slavery over merit in selecting and promoting academic faculties and nonacademic staff and assigning different duties to them, abuse of public university autonomy, absence of quality research, mismatch between expected and actual study area and discipline, and also mismatched between expected and actual job are the noteworthy indirect challenges of higher education budget.