Emphasis must be placed on budget implementation

The proposed budget for the FY 2026-27 has been approved by the National Parliament following some adjustments.

The total size of the budget stands at Tk 9.38 lakh crore. However, its success depends entirely on solving systematic implementation gaps, improving revenue collection, preventing cost overruns, and ensuring true institutional accountability.

The revenue collection target is set at Tk 6.95 lakh crore, with a target of Tk 6.4 lakh crore to be collected through the National Board of Revenue (NBR).

The total budget deficit is projected at Tk 2.43 lakh crore. To bridge this deficit, there are plans to borrow Tk 1.27 lakh crore from domestic sources and some over Tk 1.55 lakh crore from foreign sources.

The government has set a target to achieve a GDP growth rate of 6.5 percent and bring inflation down to 7.5 percent in the upcoming fiscal year.

The budget received final approval last Tuesday through the passage of the Appropriation Bill 2026 in the National Parliament. Finance Minister Amir Khasru Mahmud Chowdhury moved the motion to pass the budget during the session presided over by Speaker Hafiz Uddin Ahmed (Bir Bikram). It was adopted by a voice vote.

Based on proposals from Members of Parliament, 64 amendments were adopted. Through these amendments, the tax-free income threshold for individual taxpayers was raised from Tk 3.75 lakh to Tk 4 lakh.

Additionally, the income tax rate for private universities, medical colleges, dental colleges, engineering colleges, and information technology-based educational institutions was set at 5 percent.

On Tuesday, Bangladesh Bank announced a contractionary monetary policy-the Monetary Policy Statement (MPS)-for the first half (July-December) of the 2026-27 fiscal year, lowering private sector credit growth while keeping the policy interest rate unchanged. Doubts also remain as to whether the projected 6.8 percent growth for the coming six months will be achieved.

Meanwhile, the Dhaka Chamber of Commerce & Industry (DCCI) has expressed deep concern over the decision to keep the policy interest rate unchanged at 10 percent. It says despite the pursuit of a tight monetary policy for four consecutive years, inflation has not declined to the desired level.

Consequently, there is a risk that the benefits of a growth- and investment-friendly national budget could be significantly diminished. However, the DCCI has welcomed the Tk 60,000 crore stimulus fund announced by Bangladesh Bank to revitalize business activities.

We hope that the utmost measures will be taken to implement the budget proposals. At the same time, necessary steps must be taken to revitalize the private sector, which plays a pivotal role in the country’s economy.