Economists, business leaders and development practitioners on Saturday cautioned that the government’s ambitious targets for FY2026-27 may prove difficult to achieve unless longstanding weaknesses in governance, implementation and institutional capacity are addressed.
Speaking at a policy dialogue organised by the Power and Participation Research Centre (PPRC), speakers said the proposed budget contains several positive policy directions but lacks clear assurances that key objectives—from revenue mobilisation and economic recovery to improvements in agriculture, health and education—can be effectively delivered.
The discussion, titled “PPRC Budget Analysis”, focused on what participants described as a widening gap between policy ambitions and implementation capacity.
“The real test of any budget lies not in its promises but in its implementation,” said Hossain Zillur Rahman.
He said stronger institutions, greater accountability and a structured monitoring framework are essential to ensure that public spending translates into tangible results.
Warning against persistent governance challenges, Rahman said Bangladesh’s development ambitions continue to be undermined by what he termed “three institutional diseases”—corruption, implementation delays and institutional waste.
“All our ambitions get thwarted by corruption, implementation failures and the proliferation of unnecessary offices and projects,” he said.
Revenue Targets Under Scrutiny
Former National Board of Revenue chairman Muhammad Abdul Mazid questioned whether the government’s revenue targets are realistic given the current economic environment.
He argued that sustainable revenue growth depends on expanding economic activity and strengthening productive sectors rather than relying solely on administrative measures.
“Revenue ultimately comes from a functioning economy. If businesses and productive sectors receive the necessary support, revenue collection will naturally improve,” he said.
Mazid also underscored the need for greater transparency, accountability and faster reform within the tax administration.
Business Recovery Remains Fragile
Former Bangladesh Knitwear Manufacturers and Exporters Association president Md Fazlul Haque said several budget projections appear to assume a relatively swift economic recovery despite ongoing challenges facing businesses.
While welcoming a number of business-friendly measures, he said investor confidence remains closely linked to banking sector stability, reliable energy supply and an improved law-and-order situation.
“The budget appears to assume that the economy will recover quickly, but recovery takes time,” he said. “The expected outcomes will depend on whether businesses feel confident enough to invest and expand.”
Call for Long-Term Agricultural Transformation
Agriculture expert and former vice-chancellor of Bangladesh Agricultural University Prof M A Sattar Mandal said the budget recognises the importance of agriculture but falls short of outlining a comprehensive transformation strategy.
He noted that many support programmes have struggled because of weaknesses in beneficiary selection and project implementation.
“Agriculture requires a long-term strategy. Alongside supporting farmers, we must invest in innovation, technology and the transition to smart agriculture,” he said.
Focus on Inclusion, Health and Education
Farah Kabir, country director of ActionAid Bangladesh, questioned whether increased allocations for gender-focused programmes would translate into meaningful gains in women’s economic participation.
She called for greater investment in skills development, care infrastructure and opportunities in emerging sectors.
“The real challenge is ensuring that budget allocations create opportunities for women and vulnerable groups,” she said.
Professor Mohammad Mainul Islam, dean of the Faculty of Social Sciences at University of Dhaka, said higher health spending alone would not guarantee better outcomes without effective utilisation of resources.
He also stressed the importance of giving greater attention to family planning and population health in response to changing demographic pressures.
Meanwhile, Musharraf Tansen, former country representative of the Malala Fund, said education spending should be assessed by improvements in learning outcomes rather than the size of allocations alone.
Despite increased expenditure, significant gaps remain in literacy and numeracy among students, he noted, calling for greater emphasis on teacher development and education quality.
“The real challenge is not the size of the budget but how it is used,” he said.
Implementation Key to Success
Participants broadly agreed that the success of the FY2026-27 budget will depend less on the scale of spending commitments and more on the government’s ability to implement policies effectively, strengthen institutions and ensure accountability.
They warned that without addressing structural weaknesses in governance and execution, many of the budget’s economic and social objectives may remain difficult to achieve.