Budget must be built on a sustainable economic foundation

The first national budget of worth about Tk 938,000 crore for the fiscal year 2026-27 of the BNP government likely be announced on June 11. This is the first time in the country’s history that such a big budget is being placed on the floor of the Jatiya Sangsad.

This budget is being presented at a time when the overall economy of the country is very fragile. Needless to say, the BNP government has had to start its journey with a fragile economy by inheritance. Although the private sector is the lifeblood or main driving force of the country’s economy, the crisis in the sector is getting deeper and deeper.

Economists and business leaders said that our private sector has come under a four-pronged attack – high interest rates, a prolonged energy crisis, a mountain of non-performing loans, and an investment-unfriendly tax policy. The only hope of business people regarding the upcoming national budget is that the government takes concrete and effective steps to boost every sector investment.

According to the latest data from Bangladesh Bank, credit growth in the private sector stood at only 4.72 percent at the end of March this year. This is the lowest in the country’s history.

The previous lowest growth was in February this year. The decline in credit growth in the private sector means that investment in this sector is decreasing, and productivity is being affected.

Without investment, employment will not be created, unemployment will increase. And increasing unemployment will also cause social unrest.

According to Bangladesh Bank data, LC settlements for capital equipment were worth $1.38 billion during July-March of the 2025-26 fiscal years, compared to $1.54 billion during the same period of the previous fiscal year. Accordingly, LC settlements in this sector have decreased by 10.43 percent in a year. A downward trend has also been observed in the overall import trend.

Concerned individuals see this consistent trend of declining capital equipment imports as a major negative signal for the country’s long-term industrialization. The gas and electricity crisis has reduced the production capacity of many industries to almost half.

Experts believe that it will be difficult to restore the investment environment if the energy crisis is not resolved.

Therefore, to build a strong economy, the sector-wise production system must be dynamic and employment must be provided. A business-friendly environment must be created and its obstacles must be removed.

New taxpayers must be identified to increase the government’s revenue and reduce the pressure on regular taxpayers. So that the economic base of the people from the top to the grassroots is strengthened.