Budget ‘overly ambitious and unrealistic’

Bangladesh Jamaat-e-Islami yesterday termed the proposed national budget for fiscal year 2026-27 “unrealistic, overly ambitious and conducive to looting”, alleging that it falls short of public expectations and would encourage corruption while hurting investment and employment.

Instead of a people-centric, well-planned and implementable budget, the government has placed a fiscal framework that relies heavily on borrowing and is disconnected from economic realities, Jamaat Secretary General Mia Golam Porwar said at a press conference at the party’s central office in Dhaka’s Mogbazar.

“The biggest weakness of this budget is that it is the largest deficit budget in the country’s history. It is also heavily dependent on borrowing, particularly bank loans and foreign loans.”

Mia Golam Porwar Jamaat Secretary General

“The biggest weakness of this budget is that it is the largest deficit budget in the country’s history. It is also heavily dependent on borrowing, particularly bank loans and foreign loans. This will crowd out private investment, hamper employment generation and negatively affect the overall economy,” he said.

Questioning the revenue target, Porwar said the budget envisages collecting Tk 629,000 crore without presenting a realistic roadmap.

He said rising electricity, gas and fuel prices had already pushed up production costs, while persistently high inflation and global economic uncertainty would make both budget implementation and revenue collection more difficult.

Describing the projected growth target as unrealistic, he said international institutions, including the IMF, had forecast Bangladesh’s GDP growth at below 5 percent for the next fiscal year, while the government had set a target of 6.5 percent.

“It is an inflated and overly ambitious target with little basis in reality,” he said. “The aspirations of the people and measures to improve their living standards are not reflected in this budget. Nor does it outline any vision for establishing a self-reliant and corruption-free state.”

Porwar also alleged that the Annual Development Programme had once again been turned into a vehicle for corruption and looting.

“As in previous years, there is every possibility that public money will be wasted in the name of implementing development projects,” he said.

He said the proposed tax measures would increase pressure on lower-middle and middle-income groups, noting that the minimum personal income tax rate had been raised from five to 10 percent.

Porwar also said higher VAT on LPG and increased duties on industrial raw materials would further raise production costs and fuel inflation.

Comparing the government’s proposal with Jamaat’s shadow budget, Porwar said the party had proposed a budget of Tk 839,505 crore, which, he claimed, involved a smaller deficit and lower dependence on borrowing.

“Our shadow budget is people-oriented and reform-driven. Compared with the government’s proposal, it is more realistic and poses fewer risks to the country’s economy,” he said.