Fahmida Khatun, Executive Director of the Center for Policy Dialogue (CPD), believes the proposed budget targets need to be more realistic. She argues that unrealistic targets lead to budget discipline breakdowns. Fahmida Khatun provided two examples: revenue collection and export growth. She noted that the revenue collection target for FY 2025-26 is far from achievable, and the export growth target of 9.20% is also unrealistic given the current negative growth rate.
Regarding the deficit, Fahmida Khatun suggested that foreign loans might be preferable to bank loans to avoid private sector credit crunches. She also highlighted the need for stability, confidence, and clear direction in the budget. The proposed budget for FY 2026-27 aims to boost growth, investment, and employment.
Fahmida Khatun identified controlling inflation as the biggest challenge. The budget emphasizes investment, employment, and inflation control. She praised certain aspects of the budget, such as tax exemptions for solar panels and electric vehicles, and the focus on skill development, agriculture, and small and medium enterprises.
The proposed budget sets a growth target of 7.5% and an actual growth rate of 6.5% for FY 2026-27, which Fahmida Khatun considers ambitious but achievable with certain preconditions. She stressed the need for increased private investment, productivity, and export growth, along with continued reforms. She also highlighted the challenges of reducing inflation from the current 9% to 7.5% within a year.
