Dhaka 16 March 2025:
The Centre for Policy Dialogue (CPD) prepared and released a set of specific sector wise recommendations for the government in view of the upcoming National Budget FY2025-26.
A press briefing was organised by the think tank on Sunday in its city office.
The interim government inherited an economy characterised by high inflation, subdued revenue collection, sluggish budget implementation, a liquidity crunch in the banking sector, and declining foreign exchange reserves.
The lower momentum in export earnings and remittance inflows has further exacerbated economic vulnerabilities.
These proposals focus on reinforcing macroeconomic stability, improving resource mobilisation, strengthening public finance management, improving social sectors such as health and education, addressing the financial situation of the power and energy sector, overcoming environmental challenges, and supporting small and medium enterprises (SMEs).
Dr Fahmida Khatun, Executive Director; Professor Mustafizur Rahman, Distinguished Fellow; Dr Khondaker Golam Moazzem, Research Director; Mr Muntaseer Kamal, Research Fellow; and Syed Yusuf Saadat, Research Fellow, CPD, among others, took part in the media briefing.
According the think tank, the national budget for FY26 is being formulated at a time when Bangladesh is facing formidable economic challenges, requiring decisive and well-calibrated policy measures.
Restoring macroeconomic stability remains the foremost concern for policymakers. This requires targeted interventions to address inflationary pressures, stabilise the exchange rate, and ensure fiscal prudence.
Given the current economic landscape, the budget must prioritise the protection of vulnerable and disadvantaged groups and economic recovery.
The FY26 budget will probably be the only budget formulated by the current interim government under new leadership at the Ministry of Finance.
In this context, the upcoming national budget presents a unique opportunity for the interim government to move beyond conventional approaches, implement short-term corrective measures, and establish the groundwork for medium-term reforms in resource mobilisation, public finance management and expenditure efficiency.
A crucial first step in this process would be the development of a credible and well-structured fiscal framework.
By taking a pragmatic and forward-looking approach, the government can not only navigate the current economic turbulence but also set the stage for a stronger, more stable economic future for Bangladesh.
It is expected that the elected political government will take these measures forward.
