For the first time since taking office 10 months ago, the interim government led by Professor Muhammad Yunus has announced the national budget for the 2025–26 fiscal year. Finance Advisor Salehuddin Ahmed presented a Tk 7.9 trillion budget—Tk 7 billion less than the previous year—marking a rare instance in Bangladesh’s history where the annual budget has been reduced.
Framed as “exceptional” by the finance advisor, the budget shifts focus from growth to “overall development” amid soaring inflation, fiscal deficit, foreign debt conditions, and stagnant private investment. However, economists and analysts argue that the budget closely mirrors those of previous political regimes and misses opportunities for structural reform.
Despite some notable tax reforms, the tax-free income threshold for most individuals remains unchanged. Specific reliefs have been proposed for senior citizens, women, third-gender individuals, and war heroes, including those injured during the July 2024 uprising. Yet, many existing taxpayers will face higher burdens due to compressed tax brackets, prompting criticism for not expanding the tax base.
One of the most controversial aspects of the budget is the continued allowance of black money laundering, drawing sharp condemnation from Transparency International Bangladesh (TIB), which called the policy “immoral, discriminatory, and unconstitutional.”
Economists have also raised concerns about the government’s projections. The Finance Advisor hopes to reduce inflation to 6.5% and raise GDP growth to 6.5% in the medium term, but many experts, including Dr. Selim Raihan, question these targets, calling them overly ambitious given weak investment and employment growth.
Ultimately, while the interim government had a unique opportunity to introduce bold reforms post-July uprising, experts argue that the proposed budget retains traditional frameworks and fails to address the root causes of economic stagnation and social inequality.
