Govt considers downsizing budget, ADP amid implementation challenges: Salehuddin

The government is considering reducing the size of the national budget and the Annual Development Programme (ADP) as several fiscal and administrative challenges have emerged during implementation, Finance Adviser Dr Salehuddin Ahmed said on Wednesday (12 November).

After attending meetings of the Advisers Council Committee on Government Purchase and the Advisers Council Committee on Economic Affairs at the Bangladesh Secretariat, Dr Salehuddin told reporters that the government's original budget projections had been made on a "realistic and pragmatic" basis, given the circumstances at the time of formulation.

"When we announced the budget, it was based on the realities and assumptions prevailing then. It was indeed realistic and pragmatic. But as implementation began, several new challenges surfaced, particularly in resource mobilisation, project execution, and the overall macroeconomic environment," he said.

The finance adviser said that disruptions in revenue collection, particularly at the National Board of Revenue (NBR), have affected the government's fiscal position.

"The temporary halt in certain NBR operations has impacted revenue inflow, which is one of the major reasons we are reassessing our spending plan," Dr Salehuddin explained.

He added that, beyond revenue issues, the performance of various ministries and agencies in implementing projects has also been uneven.

"Not everyone can implement projects as efficiently as expected. There are administrative bottlenecks, procedural delays, and sometimes a lack of preparedness among implementing agencies. These factors together slow down the pace of ADP execution," he noted.

Despite these challenges, Dr Salehuddin assured that any adjustment would not be drastic.

"We are not planning any major or sweeping cuts. The overall size of the budget and ADP will likely see minor modifications, but not a fundamental departure from what was approved earlier," he said.

Dr Salehuddin said two key macroeconomic indicators — growth and inflation — have already been revised to reflect current realities.

"We have slightly reduced our GDP growth target and kept the inflation target around 7%," he said, indicating the government's intention to balance growth expectations with inflation control measures.

He stressed that the government's main focus now is to maintain fiscal discipline while ensuring the continuity of essential development activities.

"Our priority is to implement the budget in a way that ensures efficiency and value for money. Even if we have to readjust some figures, the fundamental objectives of the budget will remain unchanged," he asserted.

Dr Salehuddin also indicated that the government will continue reviewing both revenue and expenditure as the fiscal year progresses.

"We will see at the end of the period how much adjustment is necessary in the ADP and where savings can be made without affecting critical sectors," he said.

The finance adviser emphasised that the government remains committed to sustaining public investment in key areas such as infrastructure, agriculture, and social protection, while addressing emerging fiscal pressures prudently.

Following a review of the latest economic conditions, the Finance Division has proposed trimming the GDP growth target from 5.5% to 5%.

Inflation expectations are also being recalibrated, with the Fiscal Coordination Committee proposing to raise the inflation target to 7% — up from the 6.5% set out in the finance adviser's budget speech.