Proposed budget will create opportunities for looting, corruption: Jamaat

The Bangladesh Jamaat-e-Islami has demanded revision of the proposed national budget for FY27, saying it will create opportunities for "looting and corruption".

Jamaat Secretary General Professor Mia Golam Porwar, speaking at a press conference at the party's central office in Moghbazar, Dhaka today (12 June), said the budget is not implementable because of its large deficit, debt-dependent financing, unrealistic revenue target and additional tax burden.

Porwar added that it will negatively affect investment, employment and the living standards of ordinary people.

He said the Tk9.38 lakh crore budget lacks a people-friendly, well-planned and implementable economic roadmap, adding that it does not offer clear direction on improving living standards, achieving self-reliance or building a corruption-free state.

Porwar said the proposed budget has one of the largest deficits in the country's history.

Against the Tk9.38 lakh crore expenditure plan, the government has set a revenue target of Tk6.29 lakh crore, which he termed unrealistic without an efficient tax structure and corruption-free tax administration.

He also questioned how the deficit of around Tk2.36 lakh crore will be financed, warning that heavy reliance on bank borrowing may reduce private investment and employment.

The Jamaat leader said three major obstacles will make budget implementation difficult: rising power and energy costs, uncontrolled inflation, and global and geopolitical instability.

"Energy is the main driving force of production and economic activities," he said, warning that repeated hikes in gas, fuel oil and electricity prices will increase pressure on industries, businesses and ordinary people.

He claimed these factors will make it extremely difficult for the government to implement the proposed budget and achieve its revenue target.

The Jamaat leader termed the 6.5% GDP growth target and 7.5% inflation target "attractive but unrealistic".

"The 6.5% growth target is an empty slogan and an ambitious plan lacking substance," he said, citing weak investment, banking sector irregularities and corruption.

He added that repeated hikes in fuel oil, electricity and gas prices could push inflation higher and further weaken people's purchasing power.

He also criticised the Tk3 lakh crore ADP allocation, saying it could create new opportunities for corruption and wastage.

Porwar alleged that irregularities and misuse of funds have long affected ADP implementation, particularly when project funds are released near the end of the fiscal year.

He said such practices weaken transparency in development spending and obstruct real infrastructure progress.

Jamaat said its shadow budget proposed lower expenditure of Tk8,39,505 crore, against the government's Tk9,38,000 crore, and a smaller deficit of Tk1,68,329 crore, compared with Tk2,36,450 crore in the proposed budget.

It said its shadow budget revenue target stood at Tk6,65,926 crore, against the government's Tk7,01,150 crore, while the deficit-to-GDP ratio would be 2.43%, compared with 3.5%.

The party also proposed raising the tax-free income threshold to Tk4.5 lakh, against the government's Tk3.75 lakh, and increasing it to Tk5 lakh the following year.

Jamaat said its shadow budget focused on lower foreign borrowing, a welfare-oriented structure and changing the fiscal year from July-June to January-December.

Porwar strongly criticised what he called "chaos" in the banking sector and the scope for whitening black money, saying ongoing instability and irregularities in banks would be a major challenge to implementing the proposed budget.

He claimed that five banks have already been merged, which he said indicates a crisis in the banking sector.

He alleged that the Bank Resolution Act is being used to create scope for financial sector looting, money laundering and misappropriation of public funds.

Referring to S Alam Group, he said around 80% of shares of Islami Bank have been "forcibly taken over" and demanded that those shares be returned at the fixed price.

"If the proposed budget is implemented within such a chaotic banking structure, the entire economy will face serious risks, unemployment will rise and employment generation will be disrupted," he said.

Responding to a question, Professor Jamaat leader HM Hamidur Rahman Azad said although Dhaka Chamber of Commerce & Industry (DCCI) and some business bodies have described the budget as business- and investment-friendly, "there are major risks when the real economic structure is analysed".

He said the real pressure of debt dependence and deficit could reach around Tk4.8 lakh crore, weakening the base of the economy and narrowing the investment environment.

Azad said allowing undisclosed money to be legalised in the real estate sector by paying 30% tax could institutionalise corruption.

"If this becomes a permanent process, the tendency to legalise illegal money will increase, deepening inequality and corruption in the economy," he said.

He also said many ministries fail to fully use their allocated funds, with a portion returned, reflecting administrative weakness and poor implementation capacity.

Criticising low allocation for education, he said the sector is crucial for human resource development and skilled manpower, but has not received proper priority.

Azad said his party informally provided its shadow budget to the government and wants to take part in policymaking through dialogue, not conflict.