To say that the upcoming budget has a lot of factors of national interest depending on it would be an understatement of the severe magnitude.
This is the first national budget since the downfall of the previous government, one that is being prepared by an interim government comprising some of the most accomplished luminaries in the history of Bangladesh. While the current administration has stumbled, and continues to do so, in a number of key arenas, its work in steering our country, mostly the economy, has certainly been one of its accomplishments.
The biggest hurdle that the new budget needs to address is, of course, the persistently high inflation rates that Bangladesh has been contending with for several years now. According to reports, as inflation has remained high for over a year, the government will set a target of reducing inflation to 7% in the upcoming budget -- the deficit for the current fiscal year was set at Tk2,56,000 crore, equivalent to 4.6% of the GDP, while the next fiscal year’s budget deficit is also expected to remain below 5% of the GDP.
While the administration had previously stated that it plans to bring down inflation to around 4-5% by June, experts had rightfully called out just how implausible that target was. It is heartening to see the relevant authorities target a more workable inflation rate in this case, as it shows a great understanding of keeping the public informed about its plans in a transparent, realistic manner.
Bangladesh is currently in the midst of a transitionary period, not just politically but also in terms of its development. The interim government is shepherding the nation at a time when we are also expected to graduate away from our least developed country status, while simultaneously undoing the decade and a half of economic turbulence as a result of the previous government’s corrupt misrule.
To that end, the upcoming budget for 2025-26 fiscal year needs to get everything right.
