B Mirror Report:  The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) has said that successful implementation of the proposed national budget will require foresight, efficiency and transparency, noting that the size of the budget is large but not unmanageable.

In a media statement issued on Saturday regarding its observations on the proposed 2026–27 fiscal year budget, FBCCI said the government has announced a budget of Tk 9.38 trillion, which is 18.7 percent higher than the previous fiscal year.

The apex trade body said that amid the current geo-political situation, the budget is not unrealistic, as it aims to attract domestic and foreign investment, create employment, support low-income groups and move towards a one-trillion-dollar economy. However, it stressed that strong implementation capacity is essential.

FBCCI noted that the GDP growth target has been set at 6.5 percent and inflation at 7.5 percent, adding that achieving these targets would depend on maintaining macroeconomic stability and improving people’s living standards.

The organisation said total revenue collection has been targeted at Tk 6.95 trillion, including Tk 6.04 trillion from the National Board of Revenue (NBR) and Tk 910 billion from other sources. It warned that achieving this target would be a major challenge given global economic pressures and domestic constraints.

It also said the budget deficit stands at Tk 2.43 trillion, or 3.6 percent of GDP, with significant reliance on both domestic and foreign financing. FBCCI urged caution over government borrowing from the banking sector, warning it could reduce credit flow to the private sector and negatively affect investment and employment.

The trade body further highlighted that interest payments of Tk 1.275 trillion would pose a major burden on public finances.

FBCCI called for stronger public-private partnership to ensure effective budget execution and stressed the need to improve governance, accountability and monitoring systems.

It also identified several key challenges, including high inflation, low tax-to-GDP ratio, rising non-performing loans, external debt pressure and global geopolitical instability.

To ensure successful implementation, FBCCI recommended reforms in the National Board of Revenue, reduction in the cost of doing business, strengthening of capital and bond markets, export diversification, development of ICT and electronics skills, improved infrastructure and logistics, energy security, and better quality in ADP implementation.