'Proposed budget lacks in economic ambition'
The proposed national budget for fiscal year 2025-26 reflects a document marked by accounting precision but lacks economic ambition, said Ashikur Rahman, principal economist at the Policy Research Institute (PRI) of Bangladesh.
"It underscores the government's intent to maintain macroeconomic stability through fiscal restraint, rather than pursue a bold developmental or counter-cyclical agenda," he said in reaction to the national budget the finance adviser proposed today.
For all latest news, follow The Daily Star's Google News channel. Given the current weakness of the fiscal framework—characterised by low revenue mobilisation, rising debt servicing liabilities, and declining foreign aid disbursements—the budget takes a cautious posture, he said.
"The emphasis is clearly on austerity and consolidation—signalling that the government is prioritising stabilisation over stimulus."
However, this cautious approach comes at a cost.
"In a time when the economy faces multiple shocks—ranging from inflationary pressures to weak private investment—the absence of pro-growth measures or structural reform commitments suggests limited space for igniting renewed momentum."
As such, he said, the budget may succeed in meeting narrow fiscal targets but risks falling short in revitalising the economy's growth potential or addressing the needs of vulnerable citizens and job-seeking youth.
"If Bangladesh is to navigate the current economic turbulence and prepare for a more resilient future, upcoming policy cycles must go beyond fiscal arithmetic and embrace more coherent reform strategies that combine stabilisation with inclusive growth."
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