Stability, inflation reduction at core of upcoming budget: Adviser
NN Online:
Planning Adviser Dr. Wahiduddin Mahmud on Sunday said the upcoming national budget for FY2025–26 will prioritise economic stability, controlling inflation, ensuring fiscal discipline, and promoting sustainable public finance.
Speaking to reporters after a National Economic Council (NEC) meeting, he emphasised that the core budget strategy is to avoid falling into a debt trap—both local and foreign—by managing loans and expenditures prudently. “The goal is to ensure that repayments and development spending do not place further strain on the economy,” he said.
Dr. Mahmud acknowledged persistent fiscal mismanagement in the past and noted that while revenue collection cannot be rapidly increased, the government aims to limit the budget deficit to under 4% of GDP and reduce excessive expenditures.
Due to ongoing inflation, subsidies across various sectors cannot be cut immediately, he said. However, the budget will avoid populist spending and focus on long-term financial responsibility.
The planning adviser confirmed that no new large-scale or long-term projects have been added to the next Annual Development Programme (ADP), except the Japan-funded Matarbari Deep Sea Port. Despite financial constraints, the government continues repaying foreign contractors and development partners.
Dr. Mahmud criticised earlier mega projects like Payra Port, Karnaphuli Tunnel, and BRT for lacking proper feasibility studies under the previous Awami League administration.
New ADP Prioritises Sustainable Growth
Planning Commission sources revealed that the proposed ADP for FY26 stands at Tk 2,30,000 crore—6.48% higher than the revised ADP of Tk 2,16,000 crore for FY25.
The ADP focuses on sustainable, inclusive growth, targeting increased per capita income, job creation, poverty alleviation, and progress toward SDGs. Key priority sectors include agriculture, education, health, ICT, and regional development.
Top allocations include:
Transport & Communication – Tk 58,973.39 crore
Power & Energy – Tk 32,392.26 crore
Education – Tk 28,557.43 crore
Housing – Tk 22,776.40 crore
Health – Tk 18,148.14 crore
Together, these five sectors make up 70 percent of the total ADP allocation.