The Centre for Policy Dialogue (CPD) has described the proposed national budget for fiscal year 2026-27 as the new government’s first major opportunity to drive economic recovery through sustainable structural reforms.

Speaking at a press conference titled “National Budget 2026-27: CPD Review” at Lakeshore Hotel in Dhaka on Friday, CPD Executive Director Fahmida Khatun said the budget comes at a critical time when Bangladesh is facing multiple economic challenges, including persistent inflation, weak economic growth, sluggish private-sector investment, limited job creation, revenue shortfalls, and vulnerabilities in the banking sector.

She noted that although foreign exchange reserves have stabilized, the country continues to face a significant energy crisis. Against this backdrop, she described the budget as an important step toward building a humane, democratic, and inclusive economy.

According to CPD, the budget’s underlying philosophy focuses on economic recovery through human development, private sector-led growth, and expanded social protection. In addition to physical infrastructure, the budget places emphasis on employment generation, entrepreneurship, education, healthcare, and public welfare.

The think tank observed that many of the budget’s priorities align with the BNP’s election manifesto, particularly in areas such as job creation, promotion of private investment, business-friendly policies, deregulation, and social sector development.

CPD cautioned, however, that the success of the budget will depend not on its size but on the quality of its implementation. It stressed the need for strong and effective institutions capable of executing budgetary programs efficiently and delivering visible results to citizens.

“The current economic situation makes this budget an important test for the new government,” CPD said, adding that it provides a crucial opportunity to demonstrate the government’s ability to stimulate investment, create jobs, and advance long-term reforms.

Finance Minister Amir Khasru Mahmud Chowdhury on Thursday proposed a Tk 9.38 trillion budget for FY2026-27, with a revenue target of Tk 6.95 trillion, leaving an overall deficit of Tk 2.43 trillion.

The government plans to finance the deficit through Tk 1.27 trillion from domestic sources—including Tk 1.12 trillion from the banking system—and Tk 1.16 trillion from foreign loans and grants.

The proposed budget targets reducing inflation to 7.5 percent and raising economic growth to 6.5 percent in the next fiscal year.