As Bangladesh steps into a new fiscal year, the national budget for 2025-26 presented by Financial Advisor Dr. Salehuddin Ahmed has sparked concern among economists, business leaders, and ordinary citizens alike. While the budget may reflect a strategy for fiscal prudence, many argue it lacks the ambition and empathy needed to tackle the country’s deepening economic distress. At the heart of the criticism lies a painful truth: despite moderate talk of economic stabilization, the budget contains no concrete plan to address the core crises facing the nation-poverty, unemployment, declining incomes, and chronic inflation.
On June 2, 2025, Financial Advisor Dr. Salehuddin Ahmed presented the proposed national budget for the fiscal year 2025-26. With a total size of Tk 7.9 lakh crore, this budget is slightly smaller than the previous year’s Tk 7.97 lakh crore. Despite the reduction, the budget’s focus appears to be on macroeconomic stability rather than addressing the immediate concerns of the common people.
Austerity Measures and Limited Relief: The proposed budget is characterized by austerity measures, with a projected deficit of Tk 2.26 lakh crore, primarily financed through foreign borrowing. Non-development expenditures are set to increase, raising concerns about the allocation of resources. While the government aims to reduce inflation to 7% and achieve a GDP growth of 5.5%, these targets may not directly alleviate the daily struggles of ordinary citizens.
Taxation Policies: A Double-Edged Sword: The budget maintains the annual tax-free income limit at Tk 3.5 lakh, offering no immediate relief to taxpayers amidst high inflation. However, an increase of Tk 25,000 in the tax-free limit is proposed for the 2026-27 fiscal year. Experts argue that this delay in providing relief may not be sufficient to ease the financial burden on the middle class. Economist Dr. Fahmida Khatun emphasizes the need for realistic fiscal targets that prioritize the welfare of the common people.
No Real Answers to Daily Hardships: For millions of Bangladeshis, the struggle for economic survival is intensifying. Prices of essential goods remain high, job opportunities are shrinking, and the middle class is under relentless financial pressure. Yet, as Dr. Salehuddin presented the budget this week, there was no new strategy announced to pull families out of poverty, generate employment, or reverse the decline in household income.
“There’s a big difference between macroeconomic stability and microeconomic survival,” said Dr. Nasreen Ahmed, an economist and former professor at Dhaka University. “Yes, the government is talking about reining in inflation and maintaining foreign reserves, but these are not translating into relief at the kitchen table. People are tired, they’re frustrated-and they don’t want patience anymore. They want action.”
The People Demand More: Jobs, Security, and Relief: From farmers in Rangpur to garment workers in Savar and small shopkeepers in Sylhet, the message is the same: survival is getting harder. A deep sense of insecurity hangs over the country’s working and middle classes, many of whom feel neglected by a state that appears more preoccupied with maintaining stability than addressing their suffering.During the budget announcement, the Financial Advisor spoke about maintaining inflation below 9% and allocating funds for startups and youth development. However, critics say these initiatives are not enough to meet the real needs of the people.
“The youth want jobs, not festivals. The poor want food, not promises. And the working class wants relief, not just numbers,” said Mohsin Kabir, a labor rights activist. “This budget doesn’t respond to the public’s cry for help.”
Wounds Still Fresh from the July Mass Uprising: The failure to meet the basic demands of the population is not without consequences. Just months ago, the country witnessed the July Mass Uprising-a wave of demonstrations driven by a volatile mix of economic hardship and political discontent. The streets filled with unemployed youth, small traders, and low-income families, all demanding an end to inflation, corruption, and joblessness.
The uprising served as a warning that economic neglect can no longer be tolerated. Protesters were not just political activists, but people from all walks of life, expressing the same frustration: the system is not working for them.
“The uprising wasn’t only about politics-it was about food prices, joblessness, uncertainty,” said Tasneem Akhtar, a civic organizer based in Narayanganj. “People hoped that after all that, the government would listen. But this budget tells them otherwise.”
Poverty without a Plan: Despite poverty increasing steadily since the pandemic and worsening due to currency devaluation and import restrictions, the budget lacks a defined roadmap for poverty alleviation. Allocation for social safety nets remains unchanged in real terms, with critics saying it fails to cover the expanding population living below the poverty line.
According to estimates by the Centre for Policy Dialogue (CPD), over 25% of the population now lives in poverty, with extreme poverty on the rise in rural areas. Yet, there is little in the budget to suggest targeted income support, rural employment programs, or food subsidies that could ease the pressure.
“There’s an absence of bold measures. No wage support, no food security packages, no direct cash transfers. Without these, how can the poor survive?” asked Dr. Mirza Hasan, a policy researcher at BRAC Institute of Governance and Development.
Unemployment Crisis: Unspoken and Unsolved: One of the most glaring omissions from the budget speech was a structured response to the country’s rising unemployment. With the private sector showing declining credit growth, and many industries downsizing amid economic uncertainty, job creation should have been at the center of the budget.
Instead, the budget offers Tk 100 crore for startups and entrepreneurship promotion. While positive in theory, experts argue that such schemes are too small and too limited in scope to absorb the rising number of unemployed graduates and displaced workers.
“The unemployment crisis isn’t about a lack of talent. It’s about lack of opportunity,” said economist Dr. Zillur Rahman. “We needed to see investment in infrastructure, vocational training, and rural employment-things that generate jobs on a mass scale. But the budget steered clear of anything that ambitious.”
Business Sector Stuck in Uncertainty: The private sector, often seen as the engine of employment and growth, continues to face uncertainty. High borrowing costs, regulatory instability, and political unpredictability have created a climate of hesitation. Business leaders were hoping for fiscal incentives, reduced corporate taxes, and clear long-term policies-but found little to cheer for in this year’s budget.
“There is nothing here that gives business owners confidence to invest and expand,” said Shahidul Islam, Vice President of the Dhaka Chamber of Commerce and Industry. “The government says they want growth, but growth needs policy clarity, not just slogans.”
The Public Verdict: Surviving, Not Thriving: As the dust settles on the budget announcement, public reaction remains mixed-but largely skeptical. Many agree that the Financial Advisor was realistic about the country’s limitations, but realism alone is not enough when people are suffering.
“This budget might help the government survive the year, but will the people survive?” asked Munira Hossain, a schoolteacher in Barisal. “We’ve waited for relief for years. How much longer should we wait?”
Hope Deferred, Not Denied: In the closing section of his speech, Dr. Salehuddin acknowledged the long road ahead. He admitted that inflation is not yet under control, and that the country faces external risks, including new US tariffs and volatility in currency markets. Yet, there was little assurance that the everyday hardships of ordinary people would be meaningfully addressed in the months ahead.
People understand that the government cannot fix everything overnight. But they also expect honesty, urgency, and vision. For many, this budget lacks all three.
Inflation Control: A Pressing Concern: Inflation remains a significant issue, with rates hovering around 9.5%. Economist AB Mirza Azizul Islam stresses that controlling inflation should be a primary focus of the budget. He suggests that the government address supply-side gaps by procuring essential commodities and stockpiling one-third of daily necessities to stabilize prices during shortages.
Employment Generation: A Stagnant Outlook: The unemployment rate has risen to 4.49%, and private sector credit growth is declining, signaling a stagnant job market. Economists advocate for creating an enabling investment environment to boost employment opportunities. Dr. Fahmida Khatun highlights the importance of prioritizing job creation over higher GDP growth rates to address the economic woes of ordinary people.
Social Safety Nets: Insufficient Measures: The budget lacks substantial provisions for social safety nets. According to the World Bank, Bangladesh spends only 2% of its GDP on social protection, with a significant portion allocated to pensions and subsidies. Economists urge the government to expand social safety net programs and ensure that benefits reach the intended populations, addressing the needs of the most vulnerable.
Experts’ Perspectives: A Call for Comprehensive Reform: Economist MM Akash proposes large-scale public works programs to revive employment, drawing inspiration from the 100-day employment guarantee scheme. He also recommends leveraging technology to deliver cash assistance directly to the poor via mobile phones, similar to emergency cash transfers during the COVID-19 pandemic.
Dr. Fahmida Khatun advises that the fiscal targets for the upcoming budget should be realistic, considering the current macroeconomic situation both domestically and globally. She emphasizes that the government should prioritize restoring macroeconomic stability over achieving higher GDP growth rates.
A Budget for Survival, Not Prosperity: While the proposed budget aims to maintain macroeconomic stability, it falls short of addressing the immediate concerns of the common people. With limited relief measures, stagnant employment prospects, and insufficient social safety nets, the budget may ensure survival but not prosperity. As the nation navigates economic challenges, it is imperative for future budgets to prioritize the welfare of ordinary citizens, ensuring that economic growth translates into tangible benefits for all.
