The government’s announcement of the annual national budget has long been an event awaited with baited breath given the economic ramifications. Given that this is the first annual budget prepared under the transitional interim government, all eyes are expectedly on this edition of the budget.
It is no big secret that the previous Awami League government’s rampant cronyism left an indelible mark on the Bangladesh economy, which is ostensibly leading to the upcoming budget’s rather modest and leaner approach. According to reports, the interim government will be presenting a Tk790,000 crore budget for the 2025-26 fiscal year, marking a Tk7,000cr reduction from the previous year’s allocation, which aligns with the administration’s stated strategy for fiscal consolidation in order to ensure a more efficient financial plan.
While a more strategically outlined budget is absolutely understandable, there are a few factors that we hope the administration will take into account in shaping it. As we have said before, the budget must take into cognizance the grievances of the private sector, with practical and supportive tax policies to ensure investment expansion and coordination among revenue and related policies. As things stand, Bangladesh now needs a more empowered private sector than ever in order to fulfill the country’s investment and employment potential.
In short, when it comes to the private sector, the budget should not be about short-term revenue collection but long-term economic vitality.
Furthermore, it is hoped that the budget will meaningfully tackle some of the more fundamental aspects of our nation, aspects such as healthcare, education, and social safety nets must all be accounted for with higher allocations than in the past. For context, Bangladesh’s budgetary support for the healthcare sector has been the lowest in the sub-continent, which, given our burgeoning population, is simply an appalling prospect.