The proposed national budget for FY2025–26 contradicts both its stated theme and the ideals of the July Uprising, which called for a discrimination-free and sustainable Bangladesh, according to the Centre for Policy Dialogue (CPD).
At a press conference held a day after the budget announcement, CPD Executive Director Dr. Fahmida Khatun criticized the government’s decision to once again allow the whitening of black money through real estate investment, calling it “morally unjustifiable.”
“This year too, the government is offering opportunities to whiten black money, such as through purchasing flats. This discourages honest taxpayers, fuels economic inequality, and should be discontinued,” said Dr. Khatun.
She warned that allowing untaxed money to enter the housing sector would further inflate already overvalued property prices, making land, apartments, and buildings increasingly unaffordable for the middle class.
While unveiling the Tk 7.90 lakh crore budget via a televised address, Finance Adviser Dr. Salehuddin Ahmed claimed the budget places “people at the center.” However, CPD argued that this people-centric claim lacks substance and is not supported by appropriate fiscal measures.
The think tank said changes in tax policy, particularly those affecting income tax, will end up placing a heavier burden on the middle class. Dr. Khatun pointed out that although the number of tax slabs has been reduced from seven to six and the tax-free income threshold raised from Tk 350,000 to Tk 375,000, these changes are only set to take effect in the 2026–27 and 2027–28 fiscal years.
“Given persistent inflation, the tax-free threshold should have been increased immediately. By 2026–27, inflation will likely have risen further, rendering the adjustment inadequate,” she said.
CPD also flagged the government’s inflation target of 6.5% as overly optimistic. “Maintaining this target will be extremely difficult under the current economic conditions,” Dr. Khatun cautioned, adding that while the budget is optimistic on paper, its macroeconomic assumptions are likely unrealistic.
Professor Mustafizur Rahman, Distinguished Fellow at CPD, echoed these concerns, saying the budget fails to respond to a central demand of the July Uprising: job creation and reduction of inequality.
“The core philosophy of any national budget should be resource redistribution. But it’s not possible to eliminate inequality when tax revenue remains stuck at 9% of GDP,” he said. He emphasized the need to shift focus toward increasing direct taxes rather than relying heavily on indirect taxation.
Responding to a question, Dr. Khatun attributed sustained high inflation over the past three years to policy missteps by the previous government, particularly the prolonged enforcement of a fixed 9–6% lending and deposit rate when tighter monetary control was required. She also cited inefficiencies in the market and the dominance of syndicate-driven pricing systems as contributing factors.
Also present at the event were CPD Distinguished Fellow Professor Mustafizur Rahman and Research Director Dr. Khondaker Golam Moazzem.
The CPD’s post-budget analysis reflects growing concern among economists and civil society regarding the coherence, equity, and sustainability of the government’s fiscal strategy.