The Centre for Policy Dialogue (CPD) has expressed concern that the proposed national budget for FY26 does not align with its stated vision of creating an equitable society.
Dr Fahmida Khatun, executive director of CPD, made these observations on Monday during the organisation’s immediate response session on the budget at its office.
She noted, “While some positive steps have been taken, they appear to be isolated efforts. What is lacking is a comprehensive, structural transformation. The budget seems to maintain the same existing framework, with only minor adjustments here and there. As such, the proposed measures do not fully reflect the core philosophy of building a society free from inequality.”
She welcomed the allocation of Tk1,000 crore for women entrepreneurs as a commendable initiative. However, she criticised the continued provision for legalising undisclosed (black) money, even though the tax rate for doing so has been increased. “This sends the wrong message,” she said.
“It is unfair to honest taxpayers who declare their income transparently and pay taxes regularly. It morally discourages and demoralises them.”
Dr Fahmida also pointed out that although the overall budget size has been slightly reduced, there have also been cuts to the Annual Development Programme (ADP).
“This year’s budget appears to have been formulated in light of ongoing economic challenges—including persistently high inflation, stagnant investment, bureaucratic inefficiencies, and, above all, difficulties in revenue collection.”
She expressed concern over the decreased monetary allocations for three key sectors—education, health, and agriculture—under the ADP, calling this trend alarming.
On the taxation front, Dr Fahmida welcomed the increase in the tax-free income threshold from Tk3.5 lakh to Tk3.75 lakh, calling it a positive step.
However, she added, “Considering that inflation has remained above 9% for almost three years, this adjustment is still inadequate.”
She also appreciated the continuation of tax exemption for income under the names of recognised freedom fighters.
Bd-pratidin English/ Afia
