The proposed national budget has been praised for its business-friendly measures, tax incentives, and investment promotion efforts. However, experts are questioning the feasibility of its ambitious targets given the current economic conditions.
During a recent discussion titled Fiscal Priorities and Economic Justice, organized by the Bengal Institute of Peace and Economic Development in Dhaka, economists, journalists, and business leaders expressed concerns about the budget’s success. AKM Waresul Karim, a dean at North South University, highlighted the need for deep structural reforms in institutions like the National Board of Revenue (NBR) and the Anti-Corruption Commission (ACC) to effectively implement the government’s fiscal agenda.
Karim emphasized the importance of modernizing and digitally transforming the NBR to bring more taxpayers, both individuals and businesses, under an automated tax system. Without such reforms, achieving the revenue targets set in the budget could be challenging.
Failure to meet revenue targets may lead to increased reliance on domestic and foreign borrowing, raising debt-servicing costs and impacting the country’s credit rating. This could also put pressure on private investment and limit policy flexibility, creating long-term macroeconomic risks.
Another area of concern is the banking sector, where a lack of a clear reform roadmap and the government’s significant borrowing plans could hinder private-sector investment. Towfiqul Islam Khan, from the CPD, stressed the importance of evaluating the government’s success based on long-term implementation and expenditure quality rather than short-term targets.
Kazi Jesin, a broadcast journalist, supported reforms like cashless banking to combat tax evasion and criticized the budget for not addressing the country’s current economic challenges effectively. She emphasized the need for stability and unity to restore investment and build trust.
Zina Tasreen, a senior sub-editor at The Daily Star, pointed out that the budget fails to consider Bangladesh’s economic stagflation. She noted that the budget’s heavy focus on a welfare-state model may not be conducive to encouraging capitalism, productivity, and success in the long run.
Fahim Mashroor, CEO of Bdjobs, highlighted that while the budget reflects good intentions and empathy, it lacks strategic thinking and practical execution. He suggested the need for a more balanced approach that combines heart and brainpower to achieve sustainable economic growth.
