Planning Adviser Dr. Wahiduddin Mahmud has assured that the upcoming national budget for the 2025–26 fiscal year will be “realistic, disciplined, and sustainable”—not an irresponsible or populist one.
He noted that while the budget may be smaller in size, it will prioritize practicality, implementation, and long-term economic stability.
Speaking at a press briefing on Sunday following a meeting of the National Economic Council (NEC) at Sher-e-Bangla Nagar in Dhaka, Dr. Mahmud outlined the government’s key budget priorities. The NEC, chaired by Chief Adviser Professor Dr. Muhammad Yunus, approved an Annual Development Programme (ADP) of Tk 2.3 trillion for FY26.
“Our goal is to make budget management sustainable,” said Dr. Mahmud. “We aim to enhance revenue generation and keep the fiscal deficit below 4 percent of GDP.”
He emphasized that the government will avoid excessive money printing to finance the budget, warning that such actions only fuel inflation. Even salary hikes, he noted, can have unintended inflationary consequences. “This year’s budget will not be irresponsible,” he reiterated.
Focus on Debt and Spending Priorities
Dr. Mahmud also stated that the government would not take on foreign loans that impose long-term repayment pressures, with exceptions only for essential projects such as the Japan-funded Matarbari coal power plant, which benefits from low-interest financing.
He acknowledged that although the overall budget size may be smaller than in previous years, it will be more effective, targeted, and grounded in financial discipline.
Teachers’ Salaries and Pending Dues to Be Addressed
Responding to long-standing concerns in the education sector, Dr. Mahmud announced that the FY26 budget will increase salaries and allowances for teachers. He also confirmed that longstanding dues related to pensions and welfare funds—some delayed for five to six years—will finally be cleared.
“These payments have been long overdue, and we are going to resolve them in this budget,” he said, adding that the operational budget will be raised to accommodate these obligations.
“I have met teacher representatives regularly. Many have long suffered from neglect and inequality. We now aim to resolve these issues quickly,” he said.
Dr. Mahmud further noted that although the development budget for the health sector has not increased, significant infrastructure has already been built. However, many facilities still lack adequate staffing. “In both health and education, we will prioritize operational spending to ensure actual delivery of services,” he said.
He also acknowledged ongoing issues in schools and promised a greater focus on resolving practical challenges for both students and educators. “We will ensure improved benefits for teachers and create a better learning environment for children. This is a budget focused on restoring order and serving the public interest—not on political expediency.”
Criticism of Poorly Planned Development Projects
Dr. Mahmud did not hold back in criticizing past development initiatives, describing several as poorly conceived and mismanaged. He stated that although the FY26 ADP includes only ongoing projects, many of them are stagnating due to inefficiency and a lack of strategic planning.
“There are projects we can neither complete nor abandon. They were poorly planned and serve little real purpose,” he said.
He cited the Karnaphuli Tunnel as an example. “We don’t even know where the tunnel leads. On the other side lies an empty, deserted area. It looks more like the entrance to a resort than a national infrastructure asset.”
He also singled out the Dhaka–Gazipur Bus Rapid Transit (BRT) project for harsh criticism. “It has caused immense suffering to the public. Although 58 percent of the project is completed, an additional Tk 3,000 crore will be needed to finish it,” he said, blaming delays in procurement and poor project management.
“Elevators in our apartment buildings don’t work—so how will they maintain elevators at BRT stations?” he asked. “The buses haven’t even been bought yet. They’re supposed to come from Korea, and that alone will cost another Tk 3,000 crore.”
With Eid approaching, Dr. Mahmud recommended temporarily opening the BRT lanes to regular traffic to ease congestion. “Forget the rapid bus for now. Just clear the barriers so people can travel without suffering during the holidays.”