Jamaat demands revision of FY27 budget

Bangladesh Jamaat-e-Islami on Friday demanded substantial revisions to the proposed national budget for the 2026-27 fiscal year, arguing that the spending plan would create new opportunities for corruption and is unlikely to be implemented successfully due to its large deficit, debt dependence and ambitious revenue targets.

Speaking at a press conference at the party’s central office in Moghbazar, Dhaka, Jamaat Secretary General Professor Mia Golam Porwar described the proposed Tk9.38 lakh crore budget as lacking a realistic and people-oriented economic roadmap.

“The proposed budget is neither people-friendly nor implementable,” Porwar said. “It fails to provide a clear direction for improving living standards,
achieving self-reliance or building a corruption-free state.”

The Jamaat leader argued that the budget carries one of the largest fiscal deficits in the country’s history.

Against the government’s expenditure target of Tk9.38 lakh crore, revenue collection has been projected at Tk6.29 lakh crore, leaving a financing gap of around Tk2.36 lakh crore.

Porwar questioned the feasibility of achieving the revenue target without significant reforms in tax administration and stronger anti-corruption measures.

He warned that excessive reliance on domestic bank borrowing to finance the deficit could crowd out private sector investment, weaken job creation and slow economic growth.

According to Jamaat, three major factors could undermine budget implementation: rising energy costs, persistent inflation and global geopolitical uncertainties.

“Energy is the main driving force of production and economic activities,” Porwar said, adding that repeated increases in gas, electricity and fuel prices would raise production costs and place additional pressure on industries, businesses and consumers.

He also challenged the government’s macroeconomic targets, describing the projected 6.5 percent GDP growth rate and 7.5 percent inflation target as overly optimistic.

“The 6.5 percent growth target is an empty slogan and an ambitious plan lacking substance,” he said, citing weak private investment, irregularities in the banking sector and corruption as major obstacles.

Porwar warned that continued increases in fuel and utility prices could further fuel inflation and erode consumers’ purchasing power.

The Jamaat leader also criticized the Annual Development Programme (ADP) allocation of Tk3 lakh crore, alleging that it could generate new opportunities for corruption and wasteful spending.

He claimed that irregularities in project implementation and the practice of releasing large portions of development funds toward the end of the fiscal year have long undermined transparency and efficiency in public expenditure.

Presenting the party’s alternative fiscal framework, Jamaat said its shadow budget proposes total expenditure of Tk8,39,505 crore, significantly lower than the government’s proposal.

The party’s proposed budget projects a deficit of Tk1,68,329 crore, compared with the government’s estimated Tk2,36,450 crore.

Under the shadow budget, revenue collection would be targeted at Tk6,65,926 crore, while the deficit-to-GDP ratio would remain at 2.43 percent, lower than the 3.5 percent projected in the national budget.

Jamaat also proposed increasing the tax-free income threshold to Tk4.5 lakh from the government’s proposed Tk3.75 lakh, with a further increase to Tk5 lakh in the following fiscal year.

The party said its alternative budget emphasizes reduced foreign borrowing, a welfare-oriented fiscal structure and a shift in the fiscal year from the current July-June cycle to January-December.

Porwar devoted considerable attention to what he described as ongoing instability in the banking sector, arguing that it poses a significant challenge to budget implementation.

He alleged that the recent merger of five banks reflects a broader crisis in the financial sector and claimed that the Bank Resolution Act could create opportunities for financial misconduct, money laundering and misappropriation of public funds.

Referring to S Alam Group’s involvement in the banking sector, Porwar alleged that approximately 80 percent of shares in Islami Bank had been forcibly taken over and demanded that the shares be returned at a fixed price.

“If the proposed budget is implemented within such a chaotic banking structure, the entire economy will face serious risks, unemployment will increase and employment generation will be disrupted,” he said.

Responding to questions from journalists, Jamaat leader HM Hamidur Rahman Azad acknowledged that some business groups, including the Dhaka Chamber of Commerce & Industry, have described the budget as business- and investment-friendly. However, he argued that deeper analysis reveals significant economic vulnerabilities.

Azad claimed that the combined burden of deficit financing and debt obligations could effectively place pressure of nearly Tk4.8 lakh crore on the economy, reducing investment opportunities and weakening economic fundamentals.

He also criticized the provision allowing undisclosed money to be legalized in the real estate sector through payment of a 30 percent tax, arguing that such measures risk institutionalizing corruption.

“If this becomes a permanent process, the tendency to legalize illegal money will increase, deepening inequality and corruption in the economy,” he said.

Azad further noted that several ministries routinely fail to utilize their full budget allocations and often return unused funds, which he said reflects administrative weaknesses and limited implementation capacity.

He also expressed concern over what he described as inadequate funding for the education sector, arguing that education remains essential for developing skilled human resources and sustaining long-term economic growth.

The Jamaat leader said the party had informally submitted its shadow budget proposals to the government and remains interested in contributing to economic policymaking through dialogue rather than confrontation.