Distinguished economist and CPD Distinguished Fellow Dr. Debapriya Bhattacharya has described the proposed FY2026-27 national budget as heavily dependent on borrowing, warning that excessive reliance on foreign loans and large block allocations could pose challenges to fiscal discipline.

In his immediate reaction following the budget presentation in Parliament on Thursday, Dr. Bhattacharya said the budget rightly emphasizes key priorities such as a humane economy, digital inclusion, and economic liberalization. He also welcomed allocations aimed at supporting youth, marginalized communities, and disadvantaged groups.

However, he expressed concerns that the financial framework needed to achieve these policy goals remains weak. According to him, the budget relies significantly on external borrowing, while large lump-sum allocations in various sectors could raise questions about transparency and accountability in public spending.

He cautioned that maintaining fiscal discipline may become a major challenge for the government under such circumstances.

Dr. Bhattacharya stressed that the ultimate success of the budget will depend on effective implementation rather than ambitious plans on paper. He added that the government’s ability to execute the budget with efficiency, transparency, and continuity in ongoing reforms will be the key test of economic management in the coming years.