Finance Adviser Dr Salehuddin Ahmed has identified inflation control and employment generation as major challenges in the upcoming budget.
He confirmed that subsidies for agriculture and electricity will continue, while greater focus will be placed on education, health, and social security.
The budget will prioritise local employment projects over mega or monument projects, he said.
Dr Ahmed shared these insights during a pre-budget meeting with the Economic Reporters Forum (ERF) at the Secretariat on Tuesday. ERF recommended the withdrawal of excise duty on bank deposits up to Tk10 lakh.
ERF President Doulot Akhter Mala also presented 27 additional written proposals, with ERF General Secretary Abul Kashem and other members contributing to the discussion.
The adviser emphasised efforts to create a business-friendly tax system in the next fiscal year.
He urged that budget criticisms should be reserved for the end of the fiscal year, based on its actual implementation.
He reaffirmed that subsidies for agriculture, fertiliser, and electricity will remain in place.
“We seek realistic proposals and will not make grand promises that cannot be fulfilled. The budget will include medium- and long-term aspects that serve as footprints for future development,” he stated.
The budget will focus on inflation control, employment generation, macroeconomic stability, and private sector growth. Unlike previous budgets spanning 250-300 pages, this year’s budget will be condensed to 50-60 pages, focusing directly on key issues.
Dr Ahmed urged citizens to pay taxes with a broader perspective, rather than based on personal dissatisfaction with services.
“Even if your household lacks a service, your tax contributions help provide for others. Pay taxes for the country’s welfare,” he said.
He also mentioned plans for tariff rationalisation and digitisation to reduce face-to-face interactions and curb corruption.
The adviser noted that the Annual Development Program (ADP) is under review, and mega or monument projects will not be prioritised.
“Instead of massive symbolic projects, we will focus on initiatives that generate local employment,” he explained.
While large-scale infrastructure projects will not be completely abandoned, priority will be given to practical developments such as river management.
Increased allocations will be directed toward education, health, and social security, with moderate increases in allowances for growth and women’s welfare.
Dr Ahmed acknowledged that avoiding foreign loans entirely is not realistic but stressed the importance of responsible borrowing.
“Countries like Greece have a debt-to-GDP ratio of 160%, and the US has an even higher ratio, but they have stronger repayment capacities. Bangladesh has never defaulted on its debts, and we are carefully managing our debt obligations,” he reassured.
He clarified that IMF loans primarily provide budget support, whereas other foreign loans are project-based.
“If reserves and remittances decline, we cannot rely solely on project-based loans; budget support from institutions like the World Bank and IMF is also necessary,” he said.
Regarding the exchange rate, the economist said it is uncertain whether the dollar will be allowed to float freely by July.
“A sudden shift could create instability, similar to what Pakistan and Sri Lanka faced,” he warned.
On troubled banks, he mentioned that legal measures will be put in place for their resolution but assured depositors that their funds are secure.
Subsidies for fertiliser and electricity will continue. “The subsidies provided to farmers are not large, but we will maintain them,” he stated.
Mohammad Abdur Rahman Khan, secretary of the Internal Resources Division and Chairman of the National Board of Revenue (NBR), emphasised the need for a simplified VAT structure.
“Once a single VAT rate is established, we can adjust it for specific sectors,” he said.
Regarding a potential wealth tax, he noted that property taxes are currently collected by local government bodies. The upcoming budget may introduce indications of a future wealth tax.
Dr Mohammad Khairuzzaman Mozumder, secretary of the Finance Division, stated that less critical projects have been excluded from the budget plan.
“The revised budget has been reduced from Tk2.65 lakh crore to Tk2.16 lakh crore. Despite this, many ministries struggle to fully utilise their allocations due to our strict prioritisation of essential expenditures,” he said.
He reiterated that subsidies will remain, and allocations for education, health, and information technology will be increased.
Ministries have been asked to submit their expenditure proposals, and the budget will be formulated based on collective input.
bd-pratidin/GR
