Proposed budget aims to break debt cycle, clean up project mismanagement of the past: Planning adviser
He explained that almost all projects in the current budget were initiated by the previous government, many for political considerations and without proper financial scrutiny
Planning Adviser Wahiduddin Mahmud has characterised the proposed budget for fiscal year 2025-26 as one of reality-oriented and frugal.
Speaking at a post-budget press conference today (3 June), he stated the goal is to break the "vicious circle of borrowing and repaying loans," though he acknowledged this won't happen with a single budget.
"Some have labeled it a 'traditional budget' lacking major strategic shifts or surprises, and questions have been raised about whether it genuinely addresses the issue of reducing inequality," said the adviser.
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He explained that almost all projects in the current budget were initiated by the previous government, many for political considerations and without proper financial scrutiny.
"Out of 1,300 projects, only 20 to 30 are new, and even those were recorded in the prior fiscal year's budget. So, these are not our projects either," he clarified.
The adviser stated that since taking charge, their focus has been on cutting or eliminating projects to "clean up the garbage that they received from the previous government."
The proposed budget for the 2025-26 fiscal year amounts to a total expenditure of Tk7.9 lakh crore, which is 12.7% of GDP. This includes a proposed allocation of Tk5.6 lakh crore for operating and other sectors, and Tk2.3 lakh crore for development programmes. The revenue target is set at Tk5.64 lakh crore, accounting for 9% of GDP.
The budget deficit of Tk2.26 lakh crore (3.6% of GDP) is planned to be financed through domestic and foreign sources.
Significant allocations have been made for education, health, agriculture, and social programs, including Tk35,403 crore for primary and mass education, Tk47,563 crore for secondary and higher education, Tk41,908 crore for health, and Tk39,620 crore for the agriculture sector.
Additionally, a proposed allocation of Tk5,040 crore has been made for the Public-Private Partnership fund in the 2025-26 fiscal year to encourage investment projects through government-private partnerships.
