Economists split on budget
Economists have delivered a mixed verdict on the proposed FY2026–27 budget, welcoming some of its objectives while raising concerns about implementation, inflation management, banking sector reforms and the absence of a clear long-term economic strategy.
Speaking after the budget was presented in Parliament on Thursday, eminent economist and Distinguished Fellow Dr Debapriya Bhattacharya said the budget’s ultimate success would depend on the government’s ability to implement it effectively while maintaining the momentum of ongoing reforms.
He noted that the budget relies heavily on foreign borrowing and includes substantial lump-sum allocations across several sectors, which could pose challenges to fiscal discipline in the coming years.
According to him, ensuring efficient implementation and accountability will be the key test for the government.
Bangladesh Bank Governor Dr Ahsan H. Mansur emphasised the need to restore confidence and discipline in the banking sector to support economic recovery and stimulate private investment.
He urged the new administration to continue reforms initiated by the interim government, including proposed amendments to the Bank Companies Act aimed at reducing excessive family influence over bank ownership and management.
Mansur also underscored the importance of safeguarding the independence of Bangladesh Bank, arguing that a stronger and more autonomous central bank is essential for improving governance and reducing undue external influence in the financial sector.
Policy Exchange Bangladesh Chairman M Masrur Reaz said the government had attempted to shield citizens and businesses from additional tax burdens, while also providing tax relief in some areas.
However, he argued that the budget falls short of presenting a robust strategy to tackle inflation, which remains the country’s most pressing economic challenge.
He noted that inflation continues to erode household purchasing power, increase business costs, weaken domestic demand and put pressure on exchange-rate stability, making it imperative for the government to adopt a clearer and more comprehensive anti-inflation framework.
Power and Participation Research Centre (PPRC) Executive Chairman Dr Hossain Zillur Rahman said the budget reflects an intention to provide relief to people and businesses while supporting economic recovery.
However, he cautioned that the document contains numerous ambitious goals without setting out a strong roadmap for achieving them.
“There is no shortage of positive aspirations in the budget, but it lacks the strategic depth needed to place the economy on a new growth trajectory,” he said.
Commenting on the substantial increases in allocations for health and education, the former caretaker government adviser said larger budgets alone do not guarantee better public services.
He questioned how the additional resources would translate into improvements in healthcare quality and educational outcomes, noting that the budget offers few concrete answers on these issues.
