In formulating the upcoming 2025–26 fiscal year budget, on one hand, adequate sensitivity has been shown to macroeconomic realities, while on the other hand, the budget-makers have had to remain aware of the challenges of political economy. In trying to maintain this balance, it has not been possible in certain areas to reflect public expectations. This observation was made by discussants today (Wednesday, June 4, 2025) during an online session titled “Budget Review 2025–26” organized by the non-government thin tank Unnayan Shamannay. Among the expert discussants were: Morshed Millat (renewable energy finance specialist and faculty member at BIBM), Khandaker Sakhawat Ali (sociologist and research fellow at BIGD), Dr. Halida Hanum Akhter (public health expert), and Dr. M. A. Sattar Mandal (Emeritus Professor at Bangladesh Agricultural University).
The budget review was presented on behalf of Unnayan Shamannay by the organization’s Research Director, Abdullah Nadvi. He stated that although there was an expectation that key sectors like education and health would not suffer from budget cuts amid the current realities, the proposed budget does not reflect this hope. Moreover, even within these sectors, the allocation distribution has not deviated from traditional patterns. For example, in the outgoing fiscal year, only 29% of the total education budget went to government-run educational institutions. In the new budget, this proportion remains nearly unchanged at 27%.
Sakhawat Ali remarked that although the allocation for social protection has increased, as a percentage of the total budget it has actually decreased compared to the outgoing year. He also emphasized the need to restructure the social protection system to align with the new economic realities. For instance, although the garment sector employs millions of workers, only 33,000 workers are covered under specific social protection programs. In discussing the need to strengthen energy security to withstand macroeconomic pressures, Morshed Millat pointed out that the proposed budget offers no new tax incentives for the expansion of renewable energy. As a result, monetary policy initiatives in this sector may also fail to deliver the desired outcomes.
Regarding the proposed health budget, Dr. Halida Hanum noted that a large portion of the health budget often remains unimplemented. She believes that inefficiencies in implementing the health budget increase the financial burden on the public. Professor Sattar Mandal opined that since this year’s budget is relatively contractionary, utmost caution must be exercised during its implementation. The open discussion session included participation from young researchers, representatives from development organizations, and members of the media. The session was moderated by Dr. Mahbub Hasan, Senior Research Associate at Unnayan Shamannay.
*
Email *
Website
