Call for tighter execution monitoring to address ‘institutional diseases’ in budget delivery

Strengthening execution monitoring in budget implementation is essential to counter three deep-rooted "institutional diseases" – corruption, delays and failures in implementation, and waste from the proliferation of unnecessary offices and projects, said Hossain Zillur Rahman, executive chairman of Power and Participation Research Centre (PPRC).

Speaking at a webinar titled "PPRC Budget Analysis," he warned that these structural weaknesses pose serious risks to the country's fiscal ambitions under the proposed FY2026-27 national budget.

Zillur urged prioritising implementation capacity and institutional readiness over ambitious targets and proposed a structured three-month monitoring framework within the governance system to ensure accountability in budget execution.

He also raised concerns about the impact of the proposed fiscal measures on middle-income groups, pointing to what he described as a contradiction in the revenue strategy.

"While the tax-exempt income threshold has been raised, tax rates have also been increased. As a result, the actual relief for existing taxpayers is being reduced," he said.

Highlighting disparities in socio-economic conditions across the country, ActionAid Bangladesh Country Director Farah Kabir said the severity of the economic crisis cannot be assessed accurately by focusing only on the capital.

Describing Dhaka as an "artificial balloon," she said people outside the capital are going through a much harsher economic reality, with sharply eroded purchasing power.

She further noted that persistent high inflation has stretched citizens' capacity to cope, forcing many young people to cut back on meals. She also called for a national minimum wage framework to address the rising cost of living.

Former National Board of Revenue (NBR) chairman Muhammad Abdul Mazid questioned the feasibility of the government's revenue mobilisation targets.

"Revenue ultimately comes from a functioning economy," he said, adding that collections can only improve sustainably if productive sectors and private enterprises receive adequate policy support.

Echoing concerns about business competitiveness, former BKMEA president Md Fazlul Haque said the budget appears to be based on overly optimistic assumptions of a rapid economic rebound. He stressed that recovery requires time, stability in the banking sector, uninterrupted energy supply, and improvements in law and order.

In the agriculture sector, Prof MA Sattar Mandal, former vice-chancellor of Bangladesh Agricultural University, said earlier farmer-focused initiatives have often struggled due to bottlenecks in identifying beneficiaries.

He also criticised the lack of a clear roadmap for transitioning toward technology-driven "smart agriculture."