Budget FY27: ERF for structural reforms to revive economy
The Economic Reporters’ Forum (ERF) has submitted a comprehensive set of pre-budget proposals for FY27, emphasizing the urgent need for structural reforms to navigate the current economic landscape.
A delegation led by ERF president Daulat Akter Mala presented these recommendations to Finance Minister Amir Khosru Mahmud Chowdhury during a discussion at the Secretariat on Saturday.
The organization highlighted that the country is currently traversing an “extraordinary and challenging” period, necessitating a specialized budget that prioritizes equitable resource distribution and the protection of citizens’ rights.
The ERF underscored that ensuring macroeconomic stability while maintaining growth remains the most significant hurdle for the government.
With the LDC graduation fast approaching in 2026, the forum warned that failing to strengthen the banking sector or bolster foreign exchange reserves could have long-term negative consequences.
Addressing the cost-of-living crisis, the ERF argued that contractionary monetary policy alone cannot tame inflation.
They called for direct action to break market syndicates, halt extortion in supply chains, and strictly enforce profit margins for essentials like sugar and edible oil.
To shield the most vulnerable, they recommended expanding social safety nets, including Family Cards and Open Market Sales (OMS) programs.
Recognizing the stagnation in private investment, the ERF urged the government to foster an entrepreneur-friendly environment to stimulate job creation and industrial revival.
The proposal also emphasized fiscal discipline, suggesting a shift from domestic borrowing for operational costs toward increased allocations for the development sector.
In terms of social welfare, the organization proposed establishing high-quality hospitals in every divisional city and investigating the root causes of rising medicine prices to lower “out-of-pocket” medical expenses.
The forum demanded clear transparency regarding the government’s declared reform programs and their potential impacts within the budget speech.
To enhance the workforce, the ERF suggested making technical education more affordable and developing mid-level management skills through Public-Private Partnerships (PPP) to reduce dependency on foreign labour. Furthermore, they called for a predictable revenue policy and a rationalized tariff structure to attract foreign direct investment (FDI).
Other key governance recommendations included the effective implementation of Transfer Pricing laws, the repatriation of laundered funds, and the cessation of politically motivated project approvals.
The ERF proposed several tax-related measures designed to broaden the tax net while easing the burden on the general public.
A primary recommendation was to link the National Board of Revenue (NBR) database with banking information to prevent loan fraud-a move they believe would be a “game-changer” for financial discipline.
They also suggested capping taxes on essential goods, education, and medical equipment at 0.5 per cent , while calling for the withdrawal of excise duty on small savings.
By simplifying the tax refund process and reducing dividend taxes, the ERF believes the government can simultaneously increase revenue and restore critical investor confidence in the private sector.
