'Feel-good budget' lacks depth to revive economy: Hossain Zillur
He also raised concerns about the efficiency of the bureaucracy tasked with implementing the budget
The proposed FY2026-27 budget reflects the government's intention, at least in part, to provide relief to people and businesses and help revive economic activity, said Dr Hossain Zillur Rahman today (11 June).
"There is an abundance of feel-good goals in the budget, but it lacks the strategic depth needed to put the economy on a new trajectory," Zillur, the executive chairman of Power and Participation Research Centre (PPRC), told The Business Standard.
Commenting on the significantly higher allocations for health and education, the former caretaker government adviser said a larger budget does not automatically translate into better services.
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"There is little indication in the budget of how the quality of healthcare and education will improve," he said.
He also raised concerns about the efficiency of the bureaucracy tasked with implementing the budget. Of the proposed Tk9.38 lakh crore budget, around 66% has been allocated to operating expenditures.
"This raises questions about the efficiency of public spending, especially when the budget contains no meaningful roadmap for institutional reforms," he added.
Referring to the banking sector, Zillur Rahman said the budget includes some reform initiatives, but ongoing turmoil at Islami Bank Bangladesh undermines the credibility of those efforts.
"On the one hand, there is talk of banking reforms; on the other, chaos persists at Islami Bank. This contradiction creates a credibility gap," he said.
Regarding the government's Tk6.95 lakh crore revenue target, the economist expressed scepticism, saying actual collections are unlikely to come close to the goal.
