Every June, when the finance minister presents the national budget, the fundamental question citizens tend to ask is: What does this mean for me?
Today the question is more urgent in Bangladesh where we are facing inflation, youth unemployment, and climate effects.
Finance Minister Amir Khosru Mahmud Chowdhury presented the country’s biggest budget of Tk 9.38 lakh crore in parliament on June 11, 2026, the new BNP-led government’s first budget.
The big question now is: Is this fiscal plan following a conventional “budget for people” (top-down) or a revolutionary “people’s budget” (bottom-up)?
The data points to a strategic shift to the latter, with the government trying to move from physical infrastructure to human capital development.
The current paradigm
Historically, Bangladesh has followed a “budget for people” approach, in which decisions taken in Dhaka deliver megaprojects such as the Padma Bridge.
This model was successful in increasing GDP but often led to inefficient resource allocation and the exclusion of local voices.
The FY27 budget seeks to address one major historical weakness: The lack of human development.
In a major departure from the past, the government has proposed to raise the education allocation to Tk 1,36,606 crore, equal to 2% of GDP.
The finance minister explicitly pledged to raise this to 5% of GDP over the next five years. In addition, the budget introduces an “e-health card” program for 2.5 million citizens to improve universal health coverage.
The budget proposes a record Tk 3 lakh crore annual development program (ADP), but critics point to the continuation of big subsidies, including Tk 1.16 lakh crore for energy and huge allocations for aviation infrastructure (Tk 1,884 crore).
Whether the move away from “physical infrastructure” is substantive or just rhetoric remains to be seen.
Piloting participation
A “people’s budget” always begins with community conversations. The FY27 budget is a tentative step in that direction, but not quite there yet.
The government has emphasized deregulation and has introduced a “one-stop service” platform (Banglabiz) to reduce bureaucratic hurdles. The Tk300 crore for “creative economic activities” to keep the youth away from extremism and drugs, and the Tk 2,000 crore SME entrepreneurship fund, are more in line with the “people’s budget” ideal.
But there are limits to a wholly bottom-up approach.
The government aims to generate overseas employment for 10 million people, but local demands for infrastructure still need national coordination.
The success of the budget becoming truly "participatory" will depend on whether the proposed ward-level consultations and citizens' budget are actually executed beyond the policy papers.
The FY27 budget reaffirms the article’s central thesis that the future is a hybrid model: A national plan based on local knowledge. This is the new budget in terms of the three basic shifts suggested above:
1. Human development over physical infrastructure
The FY27 budget has clearly factored this in. The theme de-emphasizes physical infrastructure and emphasizes human capital development.
The real test will be execution. The government has to ensure that we do not end up with unstaffed buildings and instead see real change.
2. Go beyond symbolic participation
The budget’s focus on deregulation and the digital platform “Banglabiz” is aimed at reducing face-to-face bureaucracy. Furthermore, the government producing a citizens’ budget in Bangla (as recommended) will complete the feedback loop, enabling citizens to track spending on school construction through mobile apps.
3. Weak to develop after shielding
The budget proposes deficit financing of Tk 2.51 lakh crore (3.6% of GDP) amid dollar crisis and inflation. The government has said it will not cut primary healthcare. Instead of reducing social spending, they have expanded social safety nets through “family cards” and “farmer cards.”
The allocation for climate-resilient infrastructure (coastal embankments, salinity control) is not labeled an “environmental” cost but a survival cost for the poor.
The FY 2026-27 budget is a moral document that reflects the values of the new government. This is not a pure “top-down” budget or a pure “bottom-up” budget.
This is a national plan grounded in local knowledge that seeks to balance macroeconomic stability with the needs of grassroots communities.
It is good to know that we will be building hospitals and schools instead of flyovers only. But whether the mother in Kurigram feels the relief from inflation, whether the graduate in Khulna gets skills training, and whether the farmer in Satkhira gets that sluice gate, will determine the success of this Tk 9.38 lakh crore outlay.
We can only have a sustainable budget and a trillion-dollar economy by building with and for all citizens.
Dr Anwar is Assistant Professor at the Bangladesh Institute of Governance and Management (BIGM). He can be reached at anwar.hossin@bigm.edu.bd.