The government is considering reducing the size of the national budget and the Annual Development Programme (ADP) due to emerging fiscal and administrative challenges, Finance Adviser Dr Salehuddin Ahmed said on Wednesday (12 November).

Speaking after attending meetings of the Advisers Council Committee on Government Purchase and the Committee on Economic Affairs at the Bangladesh Secretariat, Dr Salehuddin said the original budget projections were “realistic and pragmatic” at the time of formulation. However, implementation has faced hurdles, including revenue shortfalls at the National Board of Revenue (NBR), delays in project execution, and administrative bottlenecks.

“The temporary halt in some NBR operations has affected revenue inflow, which is one of the main reasons for reassessing our spending plan,” he noted. Dr Salehuddin added that uneven performance among ministries and agencies has slowed ADP execution.

Despite these challenges, he assured that any adjustments would be minor, not a major revision of the approved budget. The government has slightly reduced the GDP growth target to 5% and adjusted the inflation target to around 7% to reflect current economic realities.

“Our priority is fiscal discipline while ensuring the continuity of essential development activities. Even with readjustments, the fundamental objectives of the budget will remain unchanged,” Dr Salehuddin said. He added that public investment in key sectors such as infrastructure, agriculture, and social protection will continue, while emerging fiscal pressures are addressed prudently.

The Finance Division has proposed trimming the GDP growth target from 5.5% to 5% and revising the inflation target from 6.5% to 7%, reflecting the latest economic conditions.