‘Budget prioritises human resource dev, infrastructure’

The proposed national budget for FY2026-27 has attached the highest priority to human resource development, infrastructure construction and social security, describing it as a realistic and balanced budget aimed at ensuring the best use of state resources, Road Transport and Bridges, Railways and Shipping Minister Shaikh Rabiul Alam said on Sunday.

The minister said around 30 percent of the budget has been allocated to the social infrastructure sector, more than 18 percent to physical infrastructure and nearly 26 percent to general public services.

He made the remarks while taking part in the general discussion on the proposed budget in the Jatiya Sangsad.

Rabiul Alam said the government has also attached equal importance to developing the infrastructure needed to engage skilled manpower in productive activities, while substantial allocations have been earmarked to strengthen the social safety net for disadvantaged people.

He said the allocations would play a vital role in transforming the country’s 180 million people into a skilled workforce.

He said the share of non-development expenditure for state administration has been reduced to 66.3 percent in the proposed budget from 72.7 percent in FY2025-26, while development expenditure has been increased to 33.7 percent from 27.3 percent.

“This reflects the government’s commitment to reducing unnecessary expenditure and placing greater emphasis on development activities,” he added.

The minister said more than Tk 3 lakh crore has been allocated under the Annual Development Programme (ADP), while an additional Tk 16,000 crore has been earmarked for development expenditure outside the ADP, which would further accelerate the country’s infrastructure development.

He said although 13.6 percent of the budget would be spent on servicing debts inherited from the previous government, more than 11 percent would be allocated for subsidies to safeguard public interests.

Responding to concerns over budget implementation, Rabiul Alam expressed optimism that there would be no shortfall in revenue collection due to the introduction of the e-Challan system, reduction in tax exemptions, prevention of tax evasion and reforms in the VAT system.

He also said dependence on bank borrowing has been reduced in the proposed budget.

According to him, the bank borrowing target has been lowered to Tk 1.12 lakh crore from Tk 1.18 lakh crore in the previous fiscal year. He expressed hope that lower inflation would boost people’s savings and have a positive impact on the banking sector.

On the budget deficit, the minister said many of the world’s largest economies also operate with deficit budgets, adding that Bangladesh would likewise be able to implement the proposed budget successfully through efficient revenue mobilisation and sound fiscal management.

He said the BNP government had achieved notable economic growth in the past and expressed confidence that the current government would attain the projected GDP growth target of 6.5 percent by utilising that experience.

Calling on the opposition to cooperate in implementing the budget, Rabiul Alam said all political parties should work together in the greater interest of national development.

“The government wants to demonstrate through successful implementation of the budget that it has the capability to sustain the country’s development and economic progress,” he said.