Experts hail FY27 budget's pro-business reforms, warn implementation is critical
In a statement issued yesterday (11 June), BUILD (Business Initiative Leading Development) described the proposed budget as a "creative and innovative" financial plan that signals a shift from conventional economic policymaking.
The proposed FY2026-27 budget has been lauded for its reform-driven and business-friendly initiatives, though experts stress that implementation remains the key challenge.
In a statement issued yesterday (11 June), BUILD (Business Initiative Leading Development) described the proposed budget as a "creative and innovative" financial plan that signals a shift from conventional economic policymaking.
The government has set a GDP growth target of 6.5% and aims to reduce inflation to 7.5% in FY27. However, analysts noted that achieving these goals will be challenging given the country's fragile macroeconomic conditions and ongoing global geopolitical uncertainties.
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The proposed budget, amounting to Tk9.38 lakh crore, or 13.7% of GDP, prioritises investment, employment generation, and social protection.
However, concerns remain over the feasibility of achieving the ambitious revenue collection target of Tk6.95 lakh crore, reads the statement.
The experts also criticised the introduction of a 0.2% advance income tax at the retail level, arguing that it could disproportionately affect lower-income groups and contribute to inflationary pressure.
While welcoming the 25% increase in social safety net allocations to Tk1.45 lakh crore, the statement questioned the inclusion of pension expenditures within social protection programmes, noting that pensions account for 27% of the total allocation.
The budget proposes Tk3.16 lakh crore in development spending, including a Tk3 lakh crore annual development programme (ADP).
The projected budget deficit stands at Tk2.43 lakh crore, equivalent to 3.6% of GDP. The government plans to finance the deficit through a combination of domestic and foreign borrowing.
The statement also stressed the need to strengthen the institutional capacity of the National Board of Revenue (NBR), arguing that modernisation initiatives such as e-filing, VAT automation, customs reforms, and the Bangladesh Single Window have yet to deliver expected outcomes.
The statement further praised VAT exemptions for content creators and freelancers, as well as the introduction of a free trade zone framework designed to improve Bangladesh's integration into global supply chains.
Experts cautioned that the budget's success will ultimately depend on execution, institutional reforms, and financial stability.
