DHAKA, April 28, 2026 (BSS) – The Bangladesh Economic Association (BEA) has submitted a set of comprehensive proposals for the upcoming FY2026-27 (FY27) national budget, calling for a strategic shift from a growth-driven approach to a macroeconomic stability-led growth framework in response to emerging stagflationary pressures in the economy.

At a pre-budget meeting with the National Board of Revenue (NBR) at Revenue Bhaban in the city, BEA representatives warned that Bangladesh is exhibiting signs of stagflation, citing sluggish GDP growth projected at around 3.5 percent alongside persistent inflation in the range of 9 to 10 percent. 

The association stressed that the prevailing macroeconomic challenges require a recalibration of policy priorities to restore stability before pursuing accelerated growth in the medium term.

Led by Professor Dr Mahbub Ullah, Convener of the BEA interim committee, argued that traditional budgetary approaches are increasingly inadequate in the face of multiple economic shocks. 

It emphasized that controlling inflation, improving revenue performance, and ensuring debt sustainability must be prioritized to stabilize the macroeconomic environment.

The BEA also expressed concern over the country’s stagnant tax-to-GDP ratio, which remains nearly 8 percent and could decline further due to revenue shortfalls.

In this context, it proposed the introduction of a National Financial Identity System integrating National ID, TIN, banking, and mobile financial service data to enhance tax compliance and reduce evasion.

The proposals further include expanding the tax net to cover digital economy activities such as e-commerce, freelance income, and international digital platforms, alongside introducing cross-border digital services taxation targeting global tech companies. 

The association also recommended a digitized property and land registry linked to national identification systems to ensure accurate valuation and transparency in real estate ownership, as well as a structured withholding tax mechanism on rental income through digitalized lease agreements.

To simplify compliance, the BEA suggested a Unified Tax Documentation Framework featuring pre-filled digital tax returns generated by automated integration of income, banking, and asset data, allowing taxpayers to verify and submit declarations with minimal manual input.

On fiscal management, the association called for reform of the Annual Development Program, recommending prioritization of high-impact and revenue-generating projects while reducing reliance on debt-financed expenditure. 

It noted that interest payments currently absorb around 14 to 16 percent of the national budget, creating significant fiscal pressure.

The BEA also proposed an inflation-linked expenditure ceiling, under which government spending growth would be capped in periods of elevated inflation.

It further suggested rationalizing administrative expenditure by reducing non-essential costs, including foreign travel and luxury procurement, to generate potential savings equivalent to 1 to 1.5 percent of the budget.

Addressing private sector concerns, the association highlighted that high interest rates and regulatory complexity are constraining investment momentum. 

It urged reforms to improve the ease of doing business, reduce bureaucratic hurdles, and strengthen governance to restore investor confidence, particularly for small and medium enterprises.

The BEA’s recommendations collectively reflect a policy direction emphasizing fiscal discipline, digital transformation of tax administration, and structural reforms aimed at strengthening macroeconomic resilience in the forthcoming fiscal year.