BTMA criticise budget management, urge policy correction
Bangladesh Textile Mills Association (BTMA) President Showkat Aziz Russell has strongly criticised the government’s management of public finances, describing parts of it as “wasteful spending” and highlighting weak industrial policy support along with a lack of accountability in budget execution.
Speaking at a pre-budget discussion jointly organised by the Institute of Chartered Accountants of Bangladesh (ICAB) and The Financial Express in Dhaka on Thursday he questioned the effectiveness of tax utilization.
“You arrest people and send them to jail for not paying taxes. But what happens to the tax money we pay?” he asked.
Russell proposed the creation of a dedicated monitoring mechanism to oversee how tax revenues are used, arguing that enforcement on collection is not matched by transparency in spending.
“If the government strictly enforces tax collection, there must also be accountability in how that money is spent,” he said. He further claimed that public expenditure is rising faster than revenue collection, while development projects are often misaligned with actual economic needs.
“You build bridges where there are no roads, and then say there is no money. This approach needs to change,” he added.
The BTMA chief also urged the government to clearly specify allocations for key sectors such as industry, healthcare, and education in the upcoming national budget.
Referring to former finance minister Saifur Rahman, Russell said Bangladesh previously benefited from a more consistent, industry-focused policy environment. “He supported policies that accelerated industrial growth. Are we still following that path? I don’t think so,” he remarked.
He also expressed concern over the current business climate, saying factories are closing and industries are under pressure.
“Businesses are collapsing, factories are shutting down, and the government is failing to ensure a business-friendly environment,” he said.
ICAB President NKA Mobin estimated that the upcoming national budget could approach Tk9 lakh crore, with a revenue target of around Tk6 lakh crore.
He stressed that improving direct tax collection and reducing VAT and tax evasion would be essential for sustainable revenue mobilisation.
ICAB Council Member Sabbir Ahmed, presenting the keynote paper, emphasised the need to shift from manual accounting systems to digital platforms.
He said real-time digital reporting would enhance financial oversight and reduce opportunities for tax evasion and fraud.
Meanwhile, American Chamber of Commerce in Bangladesh (AmCham) President Syed Ershad Ahmed said structural issues within the National Board of Revenue (NBR) are creating barriers for investors.
He called for major reforms, including automation in customs procedures, to improve efficiency and attract foreign investment.
He also noted that digital accounting and auditing could reduce corruption and enhance transparency in the business environment.
