DHAKA, March 10, 2026 (BSS) - The Centre for Policy Dialogue (CPD) has presented a comprehensive set of recommendations for the upcoming FY2026-27 national budget, urging the newly elected government to adopt a realistic fiscal framework and prioritize macroeconomic stability. 

“This budget is particularly significant as the first for the newly elected administration of the Bangladesh Nationalist Party (BNP) amid high inflation and the imminent graduation from Least Developed Country (LDC) status,” said CPD Executive Director Dr. Fahmida Khatun.

She made the remarks at a media briefing on “CPD’s Recommendations for the National Budget FY2026-27”  held at the organisation’s office at Dhanmondi in the capital today.

Fahmida Khatun observed that the current fiscal framework for FY26 has been characterized by significant implementation gaps, including modest revenue growth of only 12.9% and the lowest Annual Development Programme (ADP) implementation rate in fifteen years at 20.3%. 

Consequently, she said, many highly optimistic targets set for the previous year are likely to be missed, necessitating a more cautious and data-driven approach for FY27.

She emphasized that setting realistic revenue mobilization and GDP growth targets is crucial to avoid a business-as-usual scenario that fails to address domestic and external economic pressures.

To enhance domestic resource mobilization while minimizing the burden on citizens, Fahmida Khatun suggested that the government should pursue its manifesto goal of raising the tax-GDP ratio to 15% by 2035 through a well-written action plan and strong political will.

“Initiatives such as meaningful taxation on wealth and property, and taxes on the expanding digital economy, should be considered,” she added.

She said all ad-hoc provisions for tax incentives should be discontinued starting in FY27 to exercise caution and selectivity in the current political scenario.

With general inflation persistently exceeding 9%, she recommended a balanced fiscal approach to address supply-driven price hikes. 

“Food, energy, and power sector subsidies should be focused on supporting vulnerable and low-income groups,” she added.

She mentioned that the CPD supports the introduction of Family Cards for pilot beneficiaries and the integrated digital Farmer Smart Card to provide farmers with integrated services and subsidies.

She urged for strengthening the Competition Commission to curb anti-competitive practices and prevent hoarding.

Fahmida Khatun said that the FY27 budget must take cognizance of external developments such as the Economic Partnership Agreement (EPA) with Japan and the Bangladesh-US Agreement on Reciprocal Trade (ART). 

Furthermore, she said that preparing the economy for a post-LDC future requires aligning tariffs with WTO commitments and phasing out incompatible export subsidies.

To revitalize an investment climate where private investment has fallen to a decade low of 22.03% of GDP, she recommended establishing a digital one-stop service for business compliance. 

In the energy sector, she advocated for prioritizing the Energy Division budget to fund the drilling of 150 gas wells to reduce reliance on volatile LNG imports.

She urged for reducing high tariffs (currently up to 58.6%) on solar and wind components to achieve the target of generating 40% of electricity from clean energy sources by 2041.

She called for increasing public expenditure in health and education towards 5% of GDP each, as pledged in the government's manifesto. 

She also recommended implementing a uniform specific excise duty of Taka 10 per cigarette stick and Taka 3 per Bidi to raise revenue and reduce health costs.

Fahmida Khatun suggested standardizing parallel education streams and providing targeted stipends to increase female enrollment in higher education.

She concluded that the FY27 budget presents a unique opportunity for the government to demonstrate leadership in fiscal management and lay a robust foundation for sustainable economic recovery.