Populist proposals in budget raise questions on impact

The interim government's proposed FY26 budget includes several initiatives aimed at appeasing the public, targeting key sectors such as education, health, social security, and investment. However, doubts remain about how effectively these measures will translate into real benefits for the people.

In his budget speech, Finance Adviser Salehuddin Ahmed announced plans to bring 1,519 madrasas nationwide under the Monthly Payment Order (MPO) system next fiscal year, with allocated funds to support this move.

Despite criticism from economists and research organisations, the adviser proposed special benefits for government employees, noting that no new pay scale has been introduced since 2015. He justified the proposal as an effort to address this gap. 

Fahmida Khatun, executive director of the Centre for Policy Dialogue (CPD), cautioned that such measures could drive up inflation and worsen inequality.

To enhance healthcare access, the finance adviser unveiled plans to introduce telemedicine services in 232 hospitals and launch a "Health Window" call centre offering specialist consultations. Monthly stipends for private Master's and FCPS students will increase from Tk25,000 to Tk35,000, with additional raises for medical students' community education allowances and nursing students' stipends. 

Moreover, monthly incentives for basic subject teachers in medical education will rise from 20% to 50% of their base salary, effective from the next fiscal year.

To ensure healthcare services for the poor, an additional Tk4,166 crore has been proposed for free medical treatment, alongside Tk1,000 crore allocated for an expanded immunisation programme. Yet, longstanding concerns remain about healthcare quality and the efficiency of the health ministry's spending.

The adviser also highlighted plans to train caregivers for overseas employment and noted government consideration of PhD programmes in nursing and a training centre for nurse educators to meet international standards. 

Efforts to expedite recruitment of doctors, nurses, technicians, pharmacists, and health assistants are underway, including special BCS exams for urgent doctor appointments.

For youth development, a special Tk100 crore fund will support young entrepreneurs, while another Tk100 crore is earmarked for the "Youth Festival" celebration. The budget further aims to provide vocational training to 2.20 lakh people across various professions, linking export-oriented and small to medium-sized enterprises with global high-value chains to boost skill development.

Social safety net allowances are set to increase by Tk50 to Tk100, with plans to expand the number of beneficiaries next year.

In transport, 400 electric buses will be added to Dhaka's public fleet. The government is also working on a policy to regulate electric three-wheelers, which have caused widespread disorder in many areas. Rail transport expansion is planned to provide a safer, more comfortable, and cost-effective alternative.

Infrastructure plans include constructing ICT buildings at Dhaka University, Buet, and Jashore University of Science and Technology, which will serve as modern classrooms, labs, and startup incubation centres for ICT students.

Commenting on these initiatives, Fahmida Khatun of CPD told The Business Standard that while the proposals are promising, their success depends on transparent and equitable implementation. 

She urged the government to reduce the tax burden on the private sector and ensure affordable public services to ease financial pressures on citizens, while discouraging budget measures that could deepen inequality.