Finance Adviser Dr Salehuddin Ahmed today said that the next national budget for fiscal year 2025-2026 (FY26) would be rationale while pragmatic and local need-based projects would be given priority in the next Annual Development Programme (ADP).
“Pragmatic and local need-based projects will be given priority in the ADP for the next fiscal year while the next budget will be more or less rationale,” he said.
Dr Salehuddin also mentioned that like in the past, no ‘monument’ type project would be undertaken in the fresh ADP involving billions of dollars as such projects failed to bring any good result to the nation.
The Finance Adviser was speaking at a pre-budget meeting for the next fiscal year with the senior journalists of the print and electronic media held at the Multipurpose Hall of the Finance Ministry at Bangladesh Secretariat today.
Special Assistant to the Chief Adviser Dr Anisuzzaman Chowdhury, Finance Division Secretary Dr Md Khairuzzaman Mozumder, senior journalists and senior officials of the Ministry of Finance attended the meeting.
Responding to the various suggestions from the media, the Finance Adviser said that the government would try to give utmost protection to the industries as well as put emphasis on improving the law and order situation.
He said that the next budget would not be fully traditional or be out of the usual framework. “We’re framing the budget considering the resource gap, debt service liability and debt management,”
Dr Salehuddin also noted that no matter any successive political government comes, it would not be possible for them to throw away the next budget as it is being framed in such way.
He informed that his budget speech would not be too long as it is likely to be contained within 60 pages.
The Finance Adviser said that the interim government would try to vie for an equity-based and welfare oriented state although it would not be possible to ensure those in all arenas due to the time constraints.
He said that during this short timeframe, the government would try to continue the economic reforms side by side implementing the budget.
Dr Salehuddin, also the former central bank governor, said that they would focus more on the short-term reforms than the mid-term and long-term reforms while it would not leave anything hanging.
“We don’t have limitless resources, so we’ll put more focus on social safety nets, health and education sectors,” he added.
Turning to the issue of the country’s LDC graduation bid, the Finance Adviser said, “We can’t avoid graduation …we’ll remain sensible,”
He said that some 5 to 6 countries are also looking forward to Bangladesh over the matter while taking necessary preparations would certainly brighten the country’s image further and thus increase the country’s pride in the global arena.
He said that a taskforce, headed by Chief Adviser’s Special Assistant Dr Anisuzzaman Chowdhury, is working in this regard while the country also needs to take necessary preparations, enhance its efficiency and competitiveness for smooth LDC graduation.
Stressing more on building a cashless society and faceless tax system, the Finance Adviser said that the taxpayers in various countries across the world need not to go to the tax officials due to the faceless tax system.
He said no matter the country progresses in RMG and ensures export diversification, it would not prosper further unless it emphasizes on IT and technology, semi conductor industry and AI.
Finance Secretary Dr Md Khairuzzaman Mozumder said although containing inflation is a big challenge, but it is now declining and hopefully by end of this June, it would come at 8 percent.
Citing that the exchange rate and foreign currency reserve is now stable while there is also a jump in the export earnings and inward remittance inflow, he said that after controlling inflation, they would focus more on GDP growth.
Meanwhile, the senior journalists in the meeting suggested the government to raise the ceiling of income tax for the individual taxpayers considering the inflationary trend and declining purchasing power, putting more emphasis on ICT, freelancing, building skilled human resources, generating more employments, attractive more investment, further widening the tax net and VAT net, simplifying further the tax structure, taking necessary preparations for smooth LDC graduation, increasing the coverage and allowances of the social safety nets, increasing the coverage of TCB, not reducing the subsidies in agriculture sector, coming out from the culture of tax exemptions, and strictly monitoring the treatment facilities at the hospitals especially in the public hospitals.
