NCP terms FY27 budget 'deceptive'

The National Citizen Party (NCP) today (12 June) sharply criticised the proposed national budget for fiscal year 2026-27, calling it a "deeply disappointing and deceptive" document that fails to reflect the aspirations of ordinary people.

Speaking at a press conference held at its party office, NCP's shadow budget committee chief Atik Mujahid said the Tk9.38 lakh crore budget was nothing but a "white elephant" – imposing in appearance but hollow in substance.

"This is a utopian budget that reads more like a political manifesto than a fiscal plan grounded in economic reality," he said.

"Jumping 18% in budget size in a single year, amid a fragile and heavily indebted economy, is nothing short of a mockery of the people," he added.

Mujahid raised particular alarm over the budget's revenue projections. The National Board of Revenue (NBR) has set a collection target of Tk6.04 lakh crore – almost double what the agency has historically been able to collect.

He warned that the government's plan to borrow heavily from domestic banks to plug the deficit would create a severe "crowding-out effect", squeezing credit available to the private sector.

"When the banks can't deliver, the only remaining option is to print money. And printing money means runaway inflation – making life even harder for ordinary citizens," he added.

Mujahid also criticised the government's decision to raise the tax-free income threshold by only Tk25,000, bringing it to Tk3.75 lakh annually.

"A person needs at least Tk36,000 a month just to survive in Dhaka. We called for a tax-free threshold of at least Tk4 to Tk4.5 lakh. Instead, someone earning just Tk31,000 a month will now be liable for income tax, while those earning lakhs in the informal economy go untaxed entirely. This is extreme inequality," he said.

Mujahid expressed strong opposition to the imposition of advance source tax on small and marginal traders.

He criticised the budget's silence on two chronic economic wounds: capital flight and undisclosed income.

"There is no concrete directive on preventing money laundering or bringing black money into the formal economy. That is an extremely damaging signal," he said.

When asked how the NCP would approach governance differently, NCP joint member secretary Alauddin Mohammad outlined three priorities: expanding budget support for small and medium enterprises (SMEs) to generate mass self-employment; making job creation and real wage growth the centrepiece of fiscal policy; and introducing a universal minimum wage framework tied to inflation.

"A single budget cannot transform an economy overnight. But if every budget follows the same tired template, economic transformation will never come," he said.