Staff Reporter :
Planning Adviser Wahiduddin Mahmud stated on Sunday that the forthcoming national budget will prioritise economic discipline and stability, steering away from what he described as “irresponsible” spending practices that risk burdening future fiscal cycles.
Speaking to reporters following a meeting of the National Economic Council (NEC) held at its conference room in Sher-e-Bangla Nagar, the adviser emphasised the interim government’s commitment to restoring fiscal order.
“The next budget will aim to stabilise the economy by reducing inflation, strengthening budgetary discipline, and ensuring the sustainable implementation of development projects,” said Dr Mahmud.
He highlighted that while certain expenditures – such as salary adjustments or short-term fund disbursements – may not immediately spur inflation, they often carry significant long-term fiscal consequences. “We are committed to avoiding short-sighted decisions that create financial pressure in subsequent years,” he added.
Dr Mahmud also underscored the need to limit foreign borrowing to reduce the future debt servicing burden. The upcoming budget, he noted,
would focus on boosting domestic revenue, rationalising government expenditure, and narrowing the budget deficit.
“Effective and sustainable budget management requires reducing both deficits and debt levels, while gradually phasing out subsidies,” he explained. “Financing deficits through domestic or external borrowing simply defers the burden, creating a vicious cycle that undermines both development and operational spending.”
To break this cycle, the adviser said the government will make concerted efforts to enhance revenue generation, although he acknowledged that meaningful improvements would require time.
Regarding development spending, Dr Mahmud noted that the government is avoiding new mega-projects or high-interest, short-term loans. The exception, he said, is the Matarbari development project, which is being funded through a long-term concessional loan from Japan.
Despite the ongoing fiscal challenges, he reiterated the government’s commitment to responsible budget management. As a recent example, he cited the clearance of significant outstanding dues in the energy sector during a period of financial constraint.
Commenting on the limitations inherent in the interim administration, Dr Mahmud remarked: “While our mandate allows for reform initiatives, time constraints have hindered in-depth planning. Meaningful reform requires not only decisive action but also the space for careful deliberation.”
He added that since taking office, the interim government has faced a surge of demands – many aimed at addressing disparities and deprivation. “But these are not reforms in the true sense,” he said. “Reform necessitates a stable environment and the opportunity to reflect with a cool head.”
