The Awami League has rejected the budget proposals for the 2025-26 fiscal year, terming it cowardly, and questioned the jurisdiction of the interim government as it goes beyond keeping track of daily income and expenditure to imposing VAT and declaring a budget.
The budget has completely deviated from the obligation of a state to meet the needs of the people, while the political morality mandated by the constitution is also absent from it, the party said in a statement on Monday.
โThis is a closed-door technocratic process, which is contrary to the concept of democratic Bangladesh.โ
This budget has been prepared without the input of the political parties, civil society, economists, professional organisations, and the working people, the Awami League said. This is not a pro-people budget, but provides facilities and benefits to the upper class.
The finance adviser declaring that it is not a growth-centric budget is a fraudulence. Formulating the budget without setting a growth target is like walking towards a destination without a target. Lack of commitment is a major feature of this government, the statement said.
โThe budget has set a target of 5.5%, which is much lower than the average growth achieved during the Awami League period. However, this time, the growth rate has fallen below 4%, whereas if it were normal growth, the growth rate should have been more than 7%.
โEven though the target is low, the government is attacking growth because there is no commitment to achieve it. However, critics say that they want to lower the growth figure to hide major looting and corruption. Because in the current economy built by the hard work and sweat of the common people of Bangladesh, normal growth should be higher.โ
The Awami League also slammed the Yunus-led government for making false statements to tarnish the development and economic success during its tenure.
โThe economic success of the Awami League government is unprecedented in the history of Bangladesh. The people of the country are witnesses to continuous growth, improvement in the quality of life, and unprecedented progress in infrastructure development.
โThe world used to call Bangladesh under Sheikh Hasina a ‘growth miracle’.โ
But in Dr Muhammad Yunus’s only ten months of rule, even his supporters’ newspapers are forced to write about stagnation in investment in the country, economic stagnation, uncertainty and fear. Overall, the country’s economic situation is dire, the Awami League statement said.
โOn the one hand, it has put the blame on the Awami League government, and on the other hand, it has also said that it will work towards graduation from LDC in 2026.
โIn this case, the question arises, if the economy has been destroyed during the Awami League government’s tenure and the growth rate falls below 4% in the month of Yunus’s government, then is there a reality of transitioning from LDC next year?
โIf there is, it would be possible because of the strong economic situation during the Awami League government. How did the country reach the LDC graduation stage if the economy was destroyed during the Awami League government? This false propaganda of the government is dismissed on very simple grounds.โ
Inflation not taken into account
After growth, there is also ambiguity in the budget regarding inflation. No practical solution has been given on how to bring inflation, which has gone above double digits, to five, the statement said.
In this budget, the Awami League government has talked about increasing the speed of the economy by relying on many policies followed by the government, such as social safety nets and social protection programs.
โBut investment is needed to breathe oxygen into the slowing economy. The government has not given any outline of that much-desired investment. However, the inefficiency of the implementation of the ADP has been covered up with political statements.โ
It said: โThe government has also taken a suicidal decision to reduce the size of the ADP and reduce government investment. On the one hand, there is no private investment, and on the other hand, a decrease in government investmentโthese two blows will create numerous unemployed people instead of creating jobs in the country. The budget has not given any direction to overcome this crisis.
โFor example, the allocation to the health sector is only 1.9% of GDP, whereas the World Health Organization recommends 5%. The actual financing in the education sector has decreased (as calculated by inflation). Crores of taka are being allocated for digital surveillance projects, where it is becoming difficult to keep schools and hospitals running in rural areas.โ
Mentioning that the average inflation is 9-10%, the statement said there is no effective strategy in the budget to provide adequate food subsidies or control the prices of daily necessities.
โThis budget does not show any effective steps for the livelihood of the common man, especially the poor, marginalised and lower-middle-class people. In addition, although dearness allowance or special benefits have been announced for government officials and employees, the workers of the private or informal sector are completely neglected. These changes will further increase social inequality.โ
Debt-dependent budget
The Awami League statement said that a large part of this budget will be financed through domestic and foreign loans. A large part of the revenue still comes from customs (VAT) and indirect taxes, which directly put pressure on the common people.
But bold decisions like increasing direct taxes on the rich, preventing tax evasion, or imposing taxes on wealth are absent from this budget.
Urban-centric bias
Economic development still means mega projects and urban-based infrastructure development. There is no separate plan or adequate budget for rural farmers, residents of haor areas, and coastal climate displaced people, the statement said.
However, about 65% of Bangladesh’s people are still directly or indirectly associated with agriculture and villages. The budget has promises for this large population, but there are no implementation guidelines, it added.
Cowardly budget
Mentioning that Bangladesh is currently going through a dollar crisis, a decline in remittances, a foreign trade deficit, unemployment, and climate risks, the statement said a bold, reformed, and anti-discrimination budget was needed.
โBut this budget did not open up any new horizons. It was presented as a traditional, urban-oriented, bureaucratic and people-disengaged budget.โ
* The size of the proposed budget has decreased by 9% compared to the 2024-25 fiscal year, and it is about 10% less than the average budget of the previous few years. On the other hand, the budget has increased by an average of 10% per year in previous years. Considering these two aspects, the new budget is 20% less than in previous years.
* The importance of the development sector has decreased, as the allocation for development expenditure has decreased by an average of 10% compared to the previous year. This will have a negative impact on the country’s economic growth, employment generation, and investment activities.
* The total government liability in the 2025-26 fiscal year budget is forecast to increase by 15% compared to the 2024-25 target. This means that the government plans to borrow more next year, which will further increase the liability on each citizen.
* The allocation for the Ministry of Commerce has been reduced by 35%, which will threaten the country’s trade and commercial activities and make the economy more unstable. The same is true for the primary and mass education sectors, where a 9% budget cut may occur. This diminution will hinder the process of quality primary education and human resource development for all in the country. It is also in conflict with the Sustainable Development Goals (SDGs).
โThe Awami League in Bangladesh believes that the real strength of a state is its people. If their voice, needs and dignity are not reflected, no budget can be oriented towards public welfare.
โThe proposed budget for the 2025-26 fiscal year is an expression of the unilateral policy of the interim government, which is not in line with the hopes and aspirations of the people of the country. This budget is just an outline of the democratic deficit, economic inequality, and social deprivation. Bangladesh needs a humane, participatory, and discrimination-reducing budget, which ensures the welfare of the people on a fair basis of democracy.โ
The Awami League believes that this budget will not bring any welfare to the country but will further weaken and cripple the country’s economy. It will plunge the country into further crisis.
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