June 7, 2025 9:44 am
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Bangladesh’s 2025–26 Budget Faces Criticism Over Reduced Social Sector Allocations and Lack of Structural Reforms

The Bangladesh interim government’s proposed national budget for the fiscal year 2025–26, amounting to Tk 7.90 trillion, has sparked widespread criticism from economists, political parties, and civil society organizations. Critics argue that the budget lacks structural reforms and reduces allocations in key sectors such as education, health, and agriculture, raising concerns about its effectiveness in addressing the country’s pressing socio-economic challenges. 

📉 Decreased Allocations in Key Sectors

The Centre for Policy Dialogue (CPD) highlighted significant reductions in the Annual Development Programme (ADP) allocations for essential sectors: 
• Education: Reduced by Tk 2,971 crore 
• Health: Reduced by Tk 2,535 crore 
• Agriculture: Reduced by Tk 2,424 crore 

These cuts have raised concerns about the government’s commitment to social development and its ability to meet the needs of the population.

🏛️ Criticism from Political Parties and Civil Society

The Bangladesh Nationalist Party (BNP) labeled the budget as “unrealistic,” criticizing it for presenting “growth on paper” without tangible benefits for the populace. Transparency International Bangladesh (TIB) condemned the continuation of the black money whitening scheme, calling it unconstitutional and a betrayal of anti-corruption commitments.  

Additionally, anti-tobacco advocates criticized the government’s decision to keep cigarette prices and taxes unchanged, suggesting that this move could deprive the government of significant revenue and make cigarettes more accessible to young smokers. 

🧾 Government’s Defense

Finance Adviser Dr. Salehuddin Ahmed defended the budget, describing it as “realistic, implementable, and pragmatic,” aiming to stabilize the economy. He acknowledged that the budget is “somewhat conventional” and emphasized that dramatic reforms are not feasible overnight.  

The government has set a revenue income target of Tk 5.64 trillion, with a budget deficit of Tk 2.26 trillion, accounting for 3.6% of GDP. 

🧾 Conclusion

While the government portrays the 2025–26 budget as a step towards economic stabilization, critics argue that the lack of structural reforms and reduced allocations in critical social sectors undermine its potential to address the country’s socio-economic challenges effectively. The ongoing debates highlight the need for a more inclusive and reform-oriented fiscal approach to meet the aspirations of Bangladesh’s population.

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