Finance Adviser Dr Salehuddin Ahmed on Wednesday assured that the national budget for the 2025-26 fiscal year would be a rational one, prioritising pragmatic and locally needed projects in the Annual Development Programme (ADP).
“Pragmatic and local need-based projects will be given priority in the ADP for the next fiscal year, while the budget will be more or less rational,” Dr Salehuddin said during a pre-budget meeting with senior journalists from print and electronic media at the Finance Ministry’s Multipurpose Hall in the Bangladesh Secretariat.
He said that no “monument-type” projects involving billions of dollars would be taken, as such initiatives have failed to yield tangible benefits for the nation.
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Special Assistant to the Chief Adviser Dr Anisuzzaman Chowdhury, Finance Division Secretary Dr Md Khairuzzaman Mozumder, senior journalists and high-ranking officials of the Finance Ministry attended the meeting.
Pointing at media concerns, Dr Salehuddin assured that the government would prioritise industrial protection and improving law and order.
He noted that while the budget would not entirely break from traditional frameworks, it is being designed with careful consideration of the resource gap, debt servicing, and debt management. “No successive political government would be able to discard this budget, as it is being structured in a way that ensures continuity.”
His budget speech is expected to be concise, spanning approximately 60 pages.
The Finance Adviser highlighted the interim government’s commitment to an equity-based and welfare-oriented state, though acknowledging the challenges in achieving this within a limited timeframe. “Short-term economic reforms will take precedence, ensuring that no initiatives remain incomplete.”
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“We don’t have limitless resources, so we’ll focus on social safety nets, healthcare, and education,” he added.
LDC Graduation and Economic Diversification
Dr Salehuddin reaffirmed Bangladesh’s commitment to its Least Developed Country (LDC) graduation. “We can’t avoid graduation—we’ll remain sensible,” he said, adding that five to six countries are monitoring Bangladesh’s progress in this regard.
A task force, led by Dr Anisuzzaman Chowdhury, is working to ensure a smooth transition by enhancing efficiency and competitiveness.
The Finance Adviser also emphasized the need for a cashless society and a faceless tax system to improve efficiency. “In many countries, taxpayers do not need to interact directly with tax officials. We should aim for a similar system.”
To sustain economic progress, he underscored the importance of IT, technology, semiconductor industries and artificial intelligence (AI) beyond traditional RMG and export diversification.
Inflation Control and Economic Stability
Finance Secretary Dr Md Khairuzzaman Mozumder noted that while inflation remains a challenge, it is on a downward trend and is expected to drop to 8% by June.
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He highlighted the stability in the exchange rate and foreign currency reserves, as well as a rise in export earnings and remittance inflows. Once inflation is under control, the government will shift its focus to boosting GDP growth.
Journalists’ Recommendations
Senior journalists at the meeting proposed raising the income tax exemption ceiling in light of inflation and declining purchasing power. Other suggestions included:
*Greater emphasis on ICT, freelancing, and skill development
*Increased job creation and investment incentives
*Widening the tax and VAT net while simplifying tax structures
*Preparing adequately for LDC graduation
*Expanding social safety net programs and allowances
*Strengthening the Trading Corporation of Bangladesh (TCB)
*Maintaining agricultural subsidies
*Reducing tax exemptions
*Enhancing oversight of public hospital services