CPD and TIB Say No Roadmap For Budget Implementation

Although the proposed budget for the 2026-27 fiscal year has been assessed as positive overall, the private research organisation Centre for Policy Dialogue (CPD) has said there is no clear guidance on implementation strategies. At the same time, the organisation believes that the targets for revenue collection, growth, and inflation needed to be more realistic.

On Thursday night, at the CPD office in Dhanmondi, the organisation's executive director, Fahmida Khatun, presented an immediate post-budget reaction. She was joined by CPD's distinguished fellow, Mustafizur Rahman.

Fahmida Khatun said, "If targets are not realistic, implementation is not possible. Whenever implementation fails, budget discipline is lost. Then the budget lacks discipline regarding where revenue will come from and where expenditure will go."

She commented that in the current economic reality, simply setting growth targets is not enough; stability, confidence, and clear direction in the economy must also be ensured. The biggest challenges now are, on one hand, re-establishing macroeconomic stability, and on the other, reviving employment and investment. At the same time, reducing high inflationary pressure is also urgent.

Fahmida Khatun further said, "There are certain prerequisites for increasing the current fiscal year's growth target of 5 percent by about another 1.5 percent, even to 5.5 or 6 percent. These include bringing dynamism to private investment, increasing industrial production, and expanding exports."

Expressing concern, she stated, "Given the current state of the investment situation, the weaknesses in the financial sector, and various crises including fuel, achieving this growth may be challenging."

Fahmida Khatun also expressed concern over inflation. She said, "To bring inflation down from the current rate of around 9.5 percent to around 7.5 percent, there are also prerequisites. To reduce inflation, we need to stabilise the exchange rate of taka against foreign currency, improve the supply system for food and agricultural products, ensure fuel supply, and properly implement monetary policy. If we can increase income relative to expenditure, increase productivity, and invest in the right places, then controlling this inflation is possible."

She also commented that the budget reflects various commitments from the BNP's election manifesto. Issues such as economic stability, institutional restructuring, investment, employment generation, private sector-led growth, and good governance have been given importance. However, she said, "Emphasis has been placed on democratising the economy, creating employment, institutional reform, private sector-led growth, and good governance. But there is no announcement in the budget on how these will be implemented."
TIB expresses concern over lack of a governance roadmap for budget implementation

The anti-corruption organisation Transparency International Bangladesh (TIB) has welcomed the announcements in the proposed budget for the 2026-27 fiscal year regarding increasing the efficiency of tax administration and ensuring transparency and accountability in the tax system. However, the organisation believes that the desired progress in revenue collection will not be achievable without stopping existing corruption and collusion-based tax evasion at the National Board of Revenue. At the same time, TIB has expressed concern over the lack of a clear roadmap for ensuring good governance in budget implementation.

In a statement reacting to the proposed budget on Thursday, TIB's executive director made these comments.

He said, "Considering the cost of living of ordinary people, the proposal to reduce duties and taxes on various essential goods and services is a positive step. However, the government's commitment to increasing the efficiency of tax administration and ensuring transparency and accountability in the tax system must be effectively implemented."

He added that it is essential to ensure accountability in tax administration so that honest citizens can pay their taxes without harassment. At the same time, a taxpayer-friendly environment must be created.

Noting that information technology-based monitoring alone is not enough to prevent tax evasion, Dr. Iftekharuzzaman said, "The long-standing allegations against a section of dishonest and corrupt officials in the revenue administration must be taken seriously and effective measures must be taken. Tax evasion is one of the main reasons for the country's revenue deficit."

He further said, "To transition from a debt-dependent budget to a revenue-dependent budget, collusion-based tax evasion must be stopped. At the same time, the National Board of Revenue needs to be freed from corruption. Otherwise, the expected benefits from any other initiative will not be achieved."

The statement also emphasized the issue of publishing asset statements of public representatives and government officials. According to TIB, in the interest of ensuring corruption-free performance and establishing accountability, their asset statements need to be made public.

Expressing disappointment over the lack of a clear roadmap in the proposed budget for ensuring good governance in the budget implementation process, Dr. Iftekharuzzaman said, "There is virtually no discussion in the budget speech about a roadmap for ensuring good governance in budget implementation, which is a matter of concern."

He expressed hope, saying, "The final budget will reflect clearer guidance and effective initiatives in this regard. This will not only increase the capacity for budget implementation but also strengthen public confidence."

It is worth noting that the BNP government, led by Tarek Rahman, which came to power through the 13th parliamentary election held on February 12, has proposed a budget of 9,38,000 crore taka just four months after assuming office. According to the government, this budget has been formulated amid the deficits left by the interim government and the impact of the ongoing conflict in West Asia.

The proposed budget sets a revenue collection target of 6,95,000 crore taka for the next fiscal year, which is 10.2 percent of GDP. This includes proposals to collect 6,04,000 crore taka through the National Board of Revenue and 91,000 crore taka from other sources.