‘Unacceptable and inadequate’: Experts slam govt for allocating only 0.67% of GDP to 25 climate-related ministries
They also urged the government to avoid relying on indirect taxation and instead recover laundered money and increase corporate taxes to address the budget deficit
Environmental activists today (4 June) severely criticised the government for allocating only 0.67% of the GDP to 25 climate-related ministries in the proposed budget for the fiscal year 2025-26 (FY26) unveiled on 2 June.
This allocation is totally unacceptable, inadequate, and will create obstacles to moving forward with our sustainable economic development, they said in a press conference on "Climate Allocation in the National Budget-2025-26 and Civil Society Perspective" organised by nine environmental organisations, including COAST Foundation, reads a press statement.
Considering the relevance of sustainable economic development and ongoing climate vulnerability, initiatives should be taken to implement the adopted plans based on their own resources, and the minimum allocation of 3% of GDP for climate finance in the national budget should be reconsidered, they also said.
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COAST Foundation Executive Director Rezaul Karim Chowdhury mentioned the intensifying frequencies of natural disasters and their direct negative impacts on the lives of the coastal population.
He urged reconsideration of the climate budget allocation, constructing stone-based embankments, creating coastal natural barriers and ensuring participatory governance, and making strategic investments that serve the interests of vulnerable populations.
Water Keepers Bangladesh Chief Executive Sharif Jamil stressed that climate change is a current, not future, crisis.
He urged a stronger focus on water, air, and soil management, transboundary river governance involving Bangladesh, India, Bhutan, Nepal, and Pakistan, and environmental reassessment of mega projects.
Jamil also recommended adopting wealth taxes and the Polluter Pays Principle, which are successfully used in other countries.
He advocated for Bangladesh to ratify the 1997 UN Watercourses Convention, which was previously overlooked, and emphasised that aligning with global water governance frameworks is critical for long-term resilience.
Kawsar Rahman, president of the Climate Journalists Forum, stated that the budget largely follows an IMF-driven model, neglecting job creation and self-reliance.
He criticised the harsh increase in VAT to 15%, which disproportionately affects middle and lower-income groups, and warned of vulnerabilities in the banking sector due to excessive government borrowing.
Motahar Hossain, secretary of the Environmental Journalist Forum, reflected on past underperformance, stating that even the limited climate funds were poorly implemented and monitored.
Nikhil Chandra Bhadra, coordinator of the Sundarbans Protection Committee, lamented the postponement of key coastal projects, including Tk961 crore water preservation initiative in Bagerhat, Khulna, and Satkhira.
He called for district-wise budget allocations, prioritizing vulnerable coastal regions.
Ahsanul Karim Babor from EquityBD highlighted the alarming trend of money laundering, estimating that over BDT. 280,0000 crores were laundered from 2009 to 2023.
He called for full implementation of the Money Laundering Prevention Act, coordination among the 7 mandated agencies, and international cooperation for asset recovery.
Montaher Arafat, president of the Youth Action for Development, emphasised the need for youth participation and skill development, and allocation should be made by considering local vulnerability and demands.
Omour Faruq Bhuiyan from EquityBD raised concerns regarding the heavy reliance on indirect taxation, which constitutes 80% of revenue sources.
He warned that such tax structures exacerbate inequality and poverty, citing research showing that a 1% increase in indirect tax could raise poverty by 0.42%. He also criticised the NBR reformation process, enacted without stakeholder consultation.
MA Hasan, head of Climate Change at Coast Foundation, in his keynote presentation speech, said that socio-economic inequality may not reflect a sustainable economy.
The proposed budget for the fiscal year 2025-26 is 10.07% of the total allocation and 0.67% of GDP, he said, adding that this allocation is unplanned and inadequate against the $19 billion per year requirement of the long-term climate plan.
