Macro stability must be top priority in FY27 budget: CPD

Ensuring macroeconomic stability, protecting vulnerable groups, and creating employment opportunities should be the key priorities in the national budget for FY2026–27, said Fahmida Khatun, executive director of the Centre for Policy Dialogue (CPD).

She said Bangladesh's economy is currently facing multiple internal and external challenges that require careful and strategic policy responses.

Speaking at a media briefing titled "CPD Recommendations for the National Budget 2026–27" in Dhaka today (10 March), she said restoring macroeconomic stability should be the government's immediate priority.

According to her, key policy measures should focus on controlling inflation, maintaining fiscal discipline, increasing investment, and creating employment opportunities through targeted initiatives.

"In the current economic context, the budget must also prioritise social protection for the poor, marginalised and vulnerable groups, while accelerating economic recovery," she said.

Khatun noted that the upcoming budget will be the first national budget of the newly elected government, calling it an important opportunity to reflect the administration's policy commitments and demonstrate leadership in revenue management and efficient public spending.

However, she stressed that fulfilling such commitments would require a credible and well-structured revenue framework to strengthen fiscal capacity.

Investment and reforms

At the briefing, the CPD also placed several policy recommendations aimed at stimulating economic activity.

Khatun emphasised the need to encourage private sector investment, noting that job creation depends heavily on sustained investment flows. She observed that employment declined over the past year, while the government's ability to support investment has weakened due to fiscal pressures.

She suggested simplifying business registration procedures and reducing regulatory complexities to make investment easier.

To promote technological development, the CPD recommended providing tax incentives for digital infrastructure and introducing a special credit scheme with interest rates of 3–5 percent for environmentally sustainable small and medium enterprises (SMEs).

The think tank also highlighted the need for stronger logistics and energy planning.

Among its recommendations was the full automation of operations at the Port of Chittagong to improve efficiency and reduce delays in trade and cargo handling.

CPD also called for a clear national energy security roadmap, noting that greater emphasis should be placed on electricity transmission and distribution alongside power generation.