Aiming for Inflation Control and Growth Recovery
By Zahida Parvez Chhanda (Dhaka Bureau)
Amidst a triple whammy of a global economic slowdown, soaring inflation, and stagnant domestic investment, the Government of Bangladesh has unveiled the largest national budget in its history for the 2026-27 fiscal year. Totaling a massive 9.38 trillion Taka (approximately USD 78.16 billion), the proposed budget shifts its primary focus toward reviving economic growth and easing the soaring cost of living for ordinary citizens.
Presenting the budget proposals in the National Parliament on Thursday, the Finance and Planning Advisor, Amir Khosru Mahmud Chowdhury, stated that the government has set an ambitious target to achieve a 6.5% GDP growth rate and bring inflation down to 7.5% in the coming fiscal year. Styled under the theme ‘Journey Towards a Democratic, Humane, and Inclusive Economy,’ the budget is being projected as a strategic roadmap to inject new momentum into the national economy.
The Revenue and Deficit Equation
The proposed budget targets a total revenue collection of 6.95 trillion Taka. However, this leaves a substantial deficit of approximately 2.43 trillion Taka, which accounts for about 3.6% of the country’s GDP. The government plans to bridge this fiscal gap through domestic bank borrowings and foreign loans.
However, international and local economists have expressed skepticism regarding these revenue targets. They point out that because Bangladesh’s revenue collection has consistently fallen short of its goals in recent years, mobilizing such a massive amount will be a daunting test for the government’s administrative capacity.
Priority Sectors and Key Beneficiaries
To stimulate economic activity, the new budget prioritizes infrastructure development, power and energy, education, healthcare, and social safety nets. Development expenditure has been significantly increased to fast-track mega-projects in roads, railways, ports, and urban infrastructure.
According to analysts, sectors like construction, engineering, transport, and logistics are poised to benefit directly from this infrastructure push, which could also drive job creation. Furthermore, the budget hints at policy support for young tech entrepreneurs and export-oriented industries- including the crucial Ready-Made Garments (RMG) sector- to help them remain competitive globally.
Public Anxiety vs. Economic Reality
While the government promotes the budget as pro-people, the immediate focus of ordinary and middle-class citizens remains locked onto the commodity markets. Over the past few years, the skyrocketing costs of food, healthcare, education, and rent have pushed the middle and lower-income demographics to the brink.
Echoing the widespread public anxiety, a private sector employee from Dhaka’s Mirpur area remarked, ‘The size of the budget doesn’t matter to ordinary people like us. What we want to see is a drop in the prices of daily essentials like rice, pulses, oil, fish, and meat. That is what truly matters.’
Although the government has expanded the scope of social safety net programs, questions remain among experts about whether this assistance will be enough to offset the erosion of purchasing power caused by persistent inflation.
The Business Community’s Verdict
While business leaders welcomed the budget’s growth-oriented vision, they voiced strong concerns regarding the broader investment climate. They emphasized that attracting fresh private investment will remain a steep uphill battle unless the government addresses high bank interest rates, the acute dollar shortage, currency volatility, and bureaucratic red tape. The community called for a simplified tax structure and a concerted effort to reduce the overall cost of doing business.
Furthermore, while the government plans to broaden the tax net through digital tax management and stricter anti-evasion measures, economists suggest that enhancing the efficiency of the tax administration is a far better approach than placing heavier tax burdens on citizens.
The Ultimate Test: Implementation
Economic experts argue that the true challenge of this budget lies not in its ambitious scale, but in its execution. Controlling inflation, increasing revenue mobilization, establishing good governance in the banking sector, and curbing corruption will be critical to achieving the stated goals.
Despite these deep structural challenges, the government remains optimistic. It anticipates that a combination of planned economic reforms, boosted development spending, and active private sector engagement will revitalize the economy, steering Bangladesh back onto a path of robust growth.
As the budget moves to the parliamentary floor for debate and final approval, international observers and citizens alike are watching closely to see if this historic budget can translate into tangible relief for the daily lives of the Bangladeshi people.
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The Writer:
Zahida Parvez Chhanda, Senior Journalist and Staff Correspondent, Pressenza- Dhaka Bureau.
