Impact of MidEast War: Fuel prices held steady despite economic woes
The government has decided to keep fuel prices unchanged despite ongoing inflationary pressures and economic volatility, prioritising accountability and prudent public spending, according to Dr Rashed Al Mahmud Titumir, Adviser to the Prime Minister on the Finance and Planning Ministry.
Speaking as chief guest at a roundtable titled “Budget 2026–27: Strengthening Investment in the Social Sector” held in Dhaka, Dr Titumir said the current focus is on ensuring the effective and efficient use of public funds.
The event was jointly organised by UNICEF and The Daily Star, with support from the European Union.
Dr Titumir noted that the present administration inherited a fragile economy facing multiple structural challenges, further exacerbated by recent global crises.
He said the government is gradually shifting from a targeted social safety net approach to a universal social protection system to minimise inclusion and exclusion errors and expand coverage.
Under this plan, social protection spending is projected to rise to 5 per cent of GDP.
He also highlighted the introduction of a “one card, one citizen, one digital platform” system to streamline service delivery and enhance efficiency.
In addition, bank-linked cards for farmers are being introduced to enable direct access to subsidies.
To strengthen data reliability, a dedicated committee has been formed to verify GDP figures and other key economic indicators.
Dr Titumir added that digitalising revenue collection and ensuring transparency in budget implementation remain key government priorities.
He further underscored the need for improved coordination among international development partners, observing that certain conditions attached to IMF support may not always align with policies supportive of children and women.
During the discussion, experts expressed concern over low budget utilisation rates. In FY2024–25, only 47.4 per cent of the education development budget and 9.8 per cent of the health development budget were spent.
The roundtable was also addressed by UNICEF Country Representative Rana Flowers, CAMPE Executive Director Rasheda K. Choudhury, CPD Distinguished Fellow Professor Mustafizur Rahman, and The Daily Star Editor Mahfuz Anam, among others.
