Proposed budget prioritises people, not just growth metrics: Finance adviser | The Business Standard
Skip to main content
  • Latest
  • Economy
    • Banking
    • Stocks
    • Industry
    • Analysis
    • Bazaar
    • RMG
    • Corporates
    • Aviation
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
The Business Standard

Wednesday
June 11, 2025

Sign In
Subscribe
  • Latest
  • Economy
    • Banking
    • Stocks
    • Industry
    • Analysis
    • Bazaar
    • RMG
    • Corporates
    • Aviation
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
WEDNESDAY, JUNE 11, 2025
Proposed budget prioritises people, not just growth metrics: Finance adviser

Budget

TBS Report
03 June, 2025, 04:00 pm
Last modified: 04 June, 2025, 12:07 am

Related News

  • 58-day fishing ban in Bay to end at midnight
  • DGHS issues 11-point directive to prevent spread of Covid-19 in Bangladesh
  • Covid-19 testing to resume at hospitals amid rising infections
  • Commonwealth offers support in Bangladesh reform process 
  • Dhaka's Eid waste cleanup mostly satisfactory with some hiccups

Proposed budget prioritises people, not just growth metrics: Finance adviser

He explained that instead of chasing abstract growth targets, the current budget prioritises improving the quality of life for common people

TBS Report
03 June, 2025, 04:00 pm
Last modified: 04 June, 2025, 12:07 am
Finance Adviser Saluhuddin Ahmed spoke at a post-budget press conference at Osmani Auditorium in the capital today (3 June). Photo: Rajib Dhar/TBS
Finance Adviser Saluhuddin Ahmed spoke at a post-budget press conference at Osmani Auditorium in the capital today (3 June). Photo: Rajib Dhar/TBS

The interim government has shifted its budgetary focus from ambitious growth targets to improving people's welfare, said Finance Adviser Salehuddin Ahmed during a post-budget press briefing on Tuesday (3 June).

"We have stepped back from chasing abstract growth metrics," he said at the event in Osmani Memorial Auditorium in Dhaka. "Who has really achieved such high growth figures in the past? Our focus is on improving people's lives, not just numbers."

He described the proposed budget for FY26 as "people-friendly and business-friendly", noting that no budget can fully satisfy all stakeholders.

The Business Standard Google News Keep updated, follow The Business Standard's Google news channel

"The road ahead is difficult and full of challenges. But I believe the proposed budget is balanced and pragmatic," he said.

The adviser acknowledged that the budget could have been stronger if more revenue had been raised domestically, if corruption was tackled, and if laundered money could be brought back.

However, he said repatriating illicit funds is not easy. "The government is working on 12 cases to retrieve laundered money. If that money returned, we wouldn't need to approach the IMF," he said.

Regarding the provision for legalising black money through flat purchases, he said it would be reviewed before the final ordinance is gazetted on 22 June.

Finance Adviser Salehuddin Ahmed on Monday unveiled the proposed budget for FY26, totalling Tk7,90,000 crore – a 0.87% decline from the current fiscal's budget.

Stabilising troubled economy

Salehuddin reflected on the government's approach for the budget, saying, "We took charge when the economy was on the edge of a cliff, almost in the ICU. Our first task was to stabilise the country and ensure law and order."

He said the current economic environment shows "a measure of stability," allowing the government to present a "pragmatic and implementable" budget.

Addressing the reliance on foreign loans, Salehuddin explained, "Our resources are limited, but our needs are enormous. We had to consider global circumstances as well as domestic instability in banking, the capital market, and politics. Many institutions were either broken or weakened."

He added, "High inflation, energy crises, and a fragile banking sector were all challenges. For the first time, we have reduced the budget size compared to the previous year to reflect these realities."

Inflation, purchasing power

Regarding inflation, Salehuddin said that prices for many essential goods have stabilised or even fallen, though "it's unrealistic to expect all prices to fall at once." 

The budget aims to enhance people's purchasing power, he said.

The government aims to increase revenue collection, but the adviser noted the need for balance. "Every business wants tax relief, but if we reduce taxes in one area, we must increase them elsewhere," he said. 

The National Board of Revenue is being restructured to address these challenges, he added.

He dismissed the idea of a "revolutionary' budget", saying, "There are established methodologies we must follow. We can't just throw everything out overnight."

Salehuddin Ahmed said the budget prioritises improving people's quality of life while also supporting trade and commerce. It also includes measures to make debt management sustainable to avoid over-reliance on external borrowing. 

"While there's some repetition in the budget structure, we've also included some innovations," he said.

Asked if the middle class has been directly targeted, Salehuddin said, "No budget can target everyone specifically, and the middle class was not singled out this time."

The adviser pledged action against weak banks under the new Bank Resolution Ordinance, criticising the "unprecedented situation" where "owners have taken 70% of a bank's funds".

'Budget is frugal and feasible'

Also present, Planning Adviser Wahiduddin Mahmud called the proposed budget "realistic and frugal," describing it as "100% implementable." 

He said the government aims to break the "vicious cycle of borrowing to repay debts," though one budget alone cannot achieve this.

He revealed that most of the projects allocated funds in the new budget were initiated by the previous government without proper financial consideration. 

"We've inherited a lot of debris. Since taking office, we've been cleaning up," he said.

He added, "Only 20-30 of the 1,300 projects are new, and even those were included in last year's budget documents. Our real focus is to trim and clean up unnecessary projects."

Wahiduddin said, "The projects initiated by this government will start from FY27. A future political government will then decide whether to focus on infrastructure or human development."

He mentioned that the Public Procurement Act will be amended to introduce e-tendering and full competition across all sectors. "Previously, only two or three companies dominated large infrastructure tenders," he said.

Adviser Wahiduddin acknowledged rising poverty levels and said the Bangladesh Bureau of Statistics has been tasked with conducting a quick survey to determine the real causes. 

"We haven't yet done anything special to create new jobs," he admitted.

Inflation outlook

Bangladesh Bank Governor Ahsan H Mansur said inflation should fall to below 6.5% by the end of the next fiscal year. "Our biggest challenge has been to stabilise the exchange rate, which we've managed for the past seven to eight months," he said.

He added that the prices of oil and gas are unlikely to rise, and the global prices of oil and food are falling. As a result, he expects inflation to drop to around 7% by August-September and continue falling thereafter.

Energy, agri, social safety, trade

Energy Adviser Muhammad Fauzul Kabir Khan said the withdrawal of a 15% VAT on imported LNG was necessary because the government sells it at a loss. He noted that steps have been taken to reduce highway extortion, helping to control inflation.

Agriculture Adviser Lt Gen (retd) Md Jahangir Alam Chowdhury said the government's incentives benefit all groups, including the middle class. He announced plans to build 100 small cold storage facilities nationwide and four separate potato seed storages.

Commerce Adviser Sk Bashir Uddin said the economy was at the brink when the previous government was toppled. "Even Hasina warned of famine in March-April based on information available to her. We've stabilised the economy since then."

Finance Secretary Khairuzzaman Majumder said that the target for bank borrowing has been reduced in the new budget to avoid crowding out private sector credit. 

He outlined plans for a Tk100 crore start-up fund, a Tk100 crore employment fund, and a Tk125 crore fund for women entrepreneurs.

He added that the budget also expands the social safety net by both increasing allowances and coverage. Efforts to stabilise prices include extending the OMS food sales programme from five to six months and using Trading Corporation of Bangladesh channels.

NBR Chairman Abdur Rahman Khan said, while some tariffs have been raised to protect local industries, there are no increases on essential goods. He also noted that the final decision on legalising undeclared money in the housing sector rests with the advisers.

Economy / Top News

Finance Adviser Salehuddin Ahmed / Budget FY2025-26 / Bangladesh

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • Chief Adviser Muhammad Yunus speaks at the Chatham House in London on 11 June 2025. Photo: CA Press Wing
    CA Yunus outlines challenges, opportunities facing Bangladesh at Chatham House
  • File Photo: TBS
    DGHS issues 11-point directive to prevent spread of Covid-19 in Bangladesh
  • A man in a car uses his mobile phone as members of law enfocement stand guard on a road after curfew, as protests against federal immigration sweeps continue, in downtown Los Angeles, California, US June 10, 2025. REUTERS/Leah Millis
    Trump wants to 'liberate' Los Angeles, residents say 'no thanks'

MOST VIEWED

  • Illustration: Duniya Jahan/ TBS
    Forget Katy Perry, here’s Bangladesh’s Ruthba Yasmin shooting for the moon
  • A file photo of Bangladesh Bank Governor Dr Ahsan H Mansur. Photo: Collected
    'I have no relation with this': Ahsan Mansur debunks Joy’s allegations over daughter’s Dubai flat
  • Faiz Ahmad Tayeb. Photo: BSS
    Import duty on raw materials for e-bikes, lithium batteries reduced from 80% to 1% in some cases: Faiz Taiyeb
  • Screengrab from video shows a group of local youths forcing tourists to leave a tourist spot in Utmachhra area of Sylhet's Companiganj on Sunday, 8 June 2025, citing allegations of obscene activities and environmental damage
    Locals declare tourist spot in Sylhet 'closed', force visitors to leave
  • Shakil Ahmed. Photo: Collected
    DU student allegedly hangs himself following threats over old derogatory comment about Prophet on Facebook
  • Photo shows the Land Cruiser Prado car belonging to former member of parliament (MP) Anwarul Azim Anar found in Kushtia. Photo: TBS
    Luxury car of ex-AL MP Anar, who was killed in Kolkata, found in Kushtia

Related News

  • 58-day fishing ban in Bay to end at midnight
  • DGHS issues 11-point directive to prevent spread of Covid-19 in Bangladesh
  • Covid-19 testing to resume at hospitals amid rising infections
  • Commonwealth offers support in Bangladesh reform process 
  • Dhaka's Eid waste cleanup mostly satisfactory with some hiccups

Features

Illustration: Duniya Jahan/ TBS

Forget Katy Perry, here’s Bangladesh’s Ruthba Yasmin shooting for the moon

21h | Features
File photo of Eid holidaymakers returning to the capital from their country homes/Rajib Dhar

Dhaka: The city we never want to return to, but always do

2d | Features
Photo collage shows political posters in Bagerhat. Photos: Jannatul Naym Pieal

From Sheikh Dynasty to sibling rivalry: Bagerhat signals a turning tide in local politics

4d | Bangladesh
Illustration: TBS

Unbearable weight of the white coat: The mental health crisis in our medical colleges

6d | Panorama

More Videos from TBS

Foreign firm to draft merger plan for investment promotion agencies

Foreign firm to draft merger plan for investment promotion agencies

27m | TBS Insight
US-China London meeting ends as planned

US-China London meeting ends as planned

1h | TBS World
When will the heat wave subside?

When will the heat wave subside?

1h | TBS Today
Covid-19 testing to resume at hospitals amid rising infections

Covid-19 testing to resume at hospitals amid rising infections

2h | TBS Today
EMAIL US
contact@tbsnews.net
FOLLOW US
WHATSAPP
+880 1847416158
The Business Standard
  • About Us
  • Contact us
  • Sitemap
  • Advertisement
  • Privacy Policy
  • Comment Policy
Copyright © 2025
The Business Standard All rights reserved
Technical Partner: RSI Lab

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - oped.tbs@gmail.com

For advertisement- sales@tbsnews.net