The Centre for Policy Dialogue (CPD) has identified the target to achieve the proposed revenue collection of Tk 695,000 crore and bringing inflation down to 7.5 percent as the biggest challenges in implementing the national budget for fiscal year 2026-27.
Finance Minister Amir Khosru Mahmud Chowdhury on Thursday unveiled a record Tk 938,000-crore budget, the largest in Bangladesh's history.
Giving instant reaction to the budget at a press briefing at CPD’s Dhanmondi office later in the day, CPD Executive Director Fahmida Khatun said budget targets must be realistic to ensure effective implementation. “If the targets are not realistic, it will be difficult for the government to implement the budget, which could undermine economic discipline.”
She described the revenue target as particularly ambitious, noting that Bangladesh has historically struggled to meet its revenue collection goals.
“Although high revenue targets are regularly set, they often remain unattained. The proposed target requires a significant jump in revenue mobilisation, which will be a major challenge for the government,” Fahmida said.
She warned that failure to achieve the revenue target could make it difficult to contain inflation within the projected 7.5 percent level. “Average inflation in the current fiscal year is around 9 percent. Bringing it down by about 1.5 percentage points within a year will be challenging. If the government falls short in revenue collection and resorts to increased bank borrowing, the task will become even more difficult.”
The CPD executive director said inflation control would require a stable exchange rate, improved food and energy supply systems, and prudent monetary management. “Bangladesh is currently pursuing a contractionary monetary policy. In this context, policymakers will need to strike a careful balance to stimulate investment. Greater coordination between fiscal and monetary policies is also necessary.”
While describing the proposed GDP growth target as ambitious, she said it was not unattainable given the size of Bangladesh’s economy and population.
The budget projects economic growth at 7.5 percent, compared to an estimated 6.5 percent growth in the current fiscal year. “To achieve this target, private investment and productivity must increase, while exports need fresh momentum. At the same time, ongoing reforms must continue. Given the current investment climate, the condition of the financial sector and persistent energy challenges, achieving the target will be quite difficult,” Fahmida said.
She also observed that the budget could have placed greater emphasis on economic stability rather than growth.
However, the CPD executive director welcomed tax incentives for solar panels and electric vehicles, as well as the budget's focus on skills development, agriculture, and small and medium enterprises (SMEs), describing them as positive measures for the economy.
CPD Distinguished Fellow Mustafizur Rahman was also present at the briefing.
MSH
