Home
+
Published : 23 Jun 2025, 02:20 AM
Finance Advisor Salehuddin Ahmed has pushed back at criticism that the interim government's proposed national budget was rushed or lacked consultation, saying it is “unrealistic” to expect one budget to deliver instant, across-the-board solutions.
The FY2026 was approved at the Advisory Council meeting presided over by the Chief Advisor Muhammad Yunus on Sunday.
The total outlay stands at Tk 7.9 trillion, trimmed by Tk 70 billion from the current fiscal year.
Speaking at the Secretariat after the meeting, Salehuddin said some expectations surrounding the budget were detached from economic reality.
He added, “Many expect a magical budget that will instantly reduce tariffs, VAT, and taxes, increase income, boost business, and fix everything overnight.
“What kind of budget is that? A budget that falls from the sky? That doesn’t happen. These things can’t be done with one budget.”
The advisor stressed that the budget had been shaped through wide consultation. “We spoke with business leaders, economists, and journalists.
“We’ve also maintained constant contact with the [National Board of Revenue],” he said.
Proposed on Jun 2 through the state broadcaster, the budget maintains its total expenditure but boosts funding for social protection, export incentives, and civil servant benefits, while eliminating the clause on legalising undisclosed money.
Social safety allocations rose from Tk 812.97 billion to Tk 912.97 billion.
Export subsidies, earlier set to phase out in July, will now continue until January 2026.
Another phase of withdrawal will follow.
Salehuddin said the government had faced significant challenges in preparing the budget.
Some critics claimed the approach followed past governments too closely, but he said taking a conventional route was not necessarily a flaw -- especially since many institutions are now “weakened”.
He said international support showed confidence in the government’s economic management. “ADB is giving $400 million, the World Bank $500 million, JICA $414 million, and AIIB $400 million -- that’s $2.3 billion in budget support.
“We wouldn’t get this if we were poor managers. More is also coming for project support.”
On inflation, currently at 9 percent, he said the government expects it to ease gradually to 6.5 percent.
He also questioned income declarations, pointing out that two-thirds of 1.8 million Taxpayer Identification Number (TIN) holders pay no tax.
“As many as 1.2 million people declare an annual income below Tk 350,000. Is that credible? Where will the tax revenue come from?”
On rising consumer prices, Salehuddin pointed to minor changes such as sponge sandals rising from Tk 150 to Tk 165. “Is that really the issue?”
He said the facility for legalising undisclosed income had already been narrowed, and is now fully withdrawn.
“Not all of it was black money. We gave a chance to declare it, but that window is now closed. Some say flat sales may fall -- we’ll see.”
On claims of higher tuition fees at private universities, the advisor said no VAT has been imposed.
“Some businessmen are misleading people. Private universities aren’t meant for profit. Their surplus should be reinvested. If there’s excess, it should be taxed -- this tax was introduced in 2005.
“It was cut from 27.5 percent to 15 percent, now reduced to 10 percent. I won’t comment on their income. You know that better than I do,” he added.
