Proposed budget 'disappointing in many ways': Debapriya

Economist Debapriya Bhattacharya has characterised the proposed national budget for the fiscal 2025-26 as "disappointing in many ways", citing its failure to meet the expectations tied to the political and social circumstances under which it was formulated.

"This has become a disappointing budget in many respects – not because of what it contains, but because of what we had hoped it would offer. The aspirations were different; instead, much of what we see follows conventional patterns," said Debapriya, distinguished fellow at the Centre for Policy Dialogue (CPD), in his opening remarks at a discussion titled "National Budget 2025-26: What is There for the Left-Behinds" today.

The event, organised by the Citizen's Platform for SDGs, Bangladesh, was held at a hotel in Dhaka, with CPD Senior Research Fellow Towfiqul Islam Khan delivering the keynote presentation.

Debapriya noted that the budget came with unusually high expectations, especially as it was introduced by an interim government formed in the wake of a major political movement. "This government emerged from a spirit of resistance against inequality. Naturally, there was a strong expectation that its first budget would reflect that spirit. Unfortunately, that did not happen."

He also criticised how the budget was introduced, alleging that it was made public before being formally approved by the cabinet. "Traditionally, the budget is passed by the cabinet before being placed before the public. This time, it appeared without that essential administrative and governmental clearance."

Debapriya outlined three key observations about the proposed budget, calling it misguided, resistant to reform, and contrary to the principles of equity. He lamented that despite the public energy and youth-driven activism that brought the current government to power, the budget fails to reflect those transformative aspirations.

Reflecting on civil society's role, he said, "There's a saying in economics: 'supply side and demand side.' I believe our failure lies on the demand side. When the interim government was preparing the budget, what were we doing? As civil society, we should have acted with greater responsibility and placed stronger, more specific pressure on the government. But we did not."

Earlier in the event, Selim Raihan, executive director of the South Asian Network on Economic Modeling (Sanem), described the proposed budget as a missed opportunity. "There's a substantial gap between what was expected and what has been delivered. The main issue is that the budget tries to introduce new elements while staying within the outdated framework of old budget structures. The targets it sets are unrealistic."

He further noted that the budget does not adequately reflect either domestic challenges or the growing global uncertainty. While there have been some changes in the structure of the social safety net, no significant overhaul is evident. Allocations for health and education also remain insufficient, despite this being a moment when bold initiatives were possible.

CPD Distinguished Fellow Professor Mustafizur Rahman echoed similar concerns, stating, "This budget is being described as one of missed opportunities. I would go further – it is a lost opportunity. By staying within conventional limits, we have weakened ourselves."

Mahmud Hasan Khan, president of the Garment Manufacturers and Exporters Association, criticised the proposed budget for offering no additional support for neglected or marginalised communities. "Instead, we've seen an increase in salaries and benefits for government employees – as though they are the most deprived group in the country," he remarked sarcastically.

He also complained that the bureaucracy does not take the concerns of the private sector seriously. "Now that trade body elections are resuming through democratic processes, we will begin to speak more forcefully about bureaucracy and the need for policy reform."

In his keynote presentation, CPD's Towfiqul Islam Khan said the budget fails to adequately reflect the country's macroeconomic realities. "The fiscal framework remains unrealistic and is likely to face major revisions. It continues the tradition of past regimes — lacking transparency, offering little evidence-based justification, and retaining controversial measures like the legalisation of undisclosed money without explanation."

Mahdi Amin, adviser to the acting chairman of the BNP, said the country's industries remain stagnant and there is no new investment. "This budget offers no clear roadmap for breaking the current economic deadlock."

Samantha Sharmin, senior joint convener of the National Citizen Party, pointed out that it was a nationwide movement around employment that led to the fall of the last government. "We expected the interim government's budget to place the highest priority on employment generation. But that didn't happen."