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imited Resources, Yet a People- and Business-Friendly Budget

The current budget is both people-friendly and business-friendly within the limits of available resources. However, it is never entirely possible to make a budget fully business-oriented, nor can a revolutionary budget be implemented all at once. To reduce taxes in one area, they must be increased elsewhere. Even so, this year, instead of focusing solely on economic growth, emphasis has been placed on improving the quality of life for citizens. Efforts have been made to meet vast demands with limited resources.

Dr. Salehuddin Ahmed, Economic Adviser, made these remarks at a post-budget press conference held yesterday (Tuesday) at the Osmani Memorial Auditorium in Dhaka.

In addition to Dr. Salehuddin, other advisers also responded to questions at the press conference, including:

Planning Adviser Professor Wahiduddin Mahmud Energy, Roads and Railways Adviser Muhammad Fauzul Kabir Khan Home and Agriculture Adviser Jahangir Alam Chowdhury Trade, Civil Aviation, Textiles and Jute Adviser Sheikh Bashiruddin

Also speaking were:

Bangladesh Bank Governor Dr. Ahsan H. Mansur Cabinet Secretary Sheikh Abdur Rashid NBR Chairman Md. Abdur Rahman Khan

Compared to previous years, this year’s post-budget press conference was brief. Without addressing many questions, Dr. Salehuddin concluded the session, saying, “There is still time before the budget is passed. There is scope for providing feedback. Necessary revisions or additions can be made based on everyone's opinions.”

Dr. Salehuddin said, “For years we’ve focused on growth, but that growth hasn't reached people at all levels equally. This year’s budget shifts away from that trend and aims to improve living standards and control inflation to ease people’s lives. Food prices have already become more tolerable. However, not all product prices will drop at once.”

He added that the budget has been kept realistic, avoiding flowery promises. Importantly, for the first time, the overall budget size has been reduced. Efforts have been made to tackle the mess left behind by the previous government in banking, capital markets, and the power and energy sectors. “There is no other country in the world where bank owners have taken more than 70% of the loans. Under such circumstances, reforms have been initiated in the financial sector and others. These reforms cannot be completed by this interim government but will leave a ‘footprint’ for the next one.”

He stressed that national resources are limited while demands are vast. “This government has taken charge in a difficult time. Some say the country was in the ICU, especially the financial sector, which had hit rock bottom. If we hadn’t stepped in, the situation could have worsened. With everyone's efforts, the financial sector has been stabilized, and inflation has decreased.”

When asked about the downsides of the budget, he said, “I wouldn’t call it a downside, but it could have been better if we had been able to curb tax evasion and increase revenue. If there were no corruption or if we could recover laundered money, we wouldn’t need to borrow from donor agencies.” He noted that money launderers are clever — they don’t simply buy property abroad but move funds across multiple layers and countries, making recovery difficult.

Addressing criticism that this year’s budget is “business as usual,” he said such assessments are not accurate. “This year’s budget includes a three-year plan and aims to reduce dependency on loans. Now, every country and international institution holds a positive outlook on Bangladesh. While criticism of the government is natural, we should also acknowledge the positives. The media’s cooperation and empathy are important in this regard.”

On employment initiatives, Finance Secretary Dr. Md. Khairuzzaman Mozumder said that recruitment will be made for vacant government positions, including a special BCS. Additionally, initiatives have been taken to create jobs in the private sector. For example, the budget includes:

Tk 1 billion for startups Tk 1.25 billion for women entrepreneurs Tk 1 billion for youth entrepreneurship