The Centre for Policy Dialogue (CPD) on Tuesday called for realistic fiscal planning, enhanced domestic revenue mobilisation, and targeted measures to control inflation and stimulate investment in the national budget for FY2026-27.
CPD Executive Director Fahmida Khatun presented the organisation’s report, “Recommendations for the National Budget FY2026-27,” at its Dhanmondi office, highlighting both immediate macroeconomic pressures and medium-term structural challenges facing Bangladesh.
Prepared under CPD’s Independent Review of Bangladesh’s Development (IRBD) programme, the report noted that the upcoming budget will be the first for the new government and will be shaped amid high inflation, sluggish revenue collection, declining investment, rising debt, and slow implementation of public projects.
Revenue mobilisation remains a major challenge: The National Board of Revenue (NBR) recorded 12.9 per cent growth in tax collection during July-January of FY26, far below the annual target of 34.5 per cent, resulting in a shortfall of about Tk60,000 crore.
CPD recommended setting more realistic fiscal targets, expanding tax bases - including wealth, property, and the digital economy - and gradually phasing out ad hoc tax exemptions.
Addressing inflation and investment gaps: With general inflation exceeding 9 per cent in early 2026, largely supply-driven, CPD urged policy measures such as stronger food procurement, market oversight, and targeted social safety nets for low-income households. Private investment has fallen to roughly 22 per cent of GDP - the lowest in a decade - while foreign direct investment remains below 0.5 per cent.
To boost investment, CPD recommended regulatory simplification, digitalisation of business services, easier access to finance for SMEs, and incentives for job-creating firms.
Preparing for external pressures: The report stressed that FY27 budget planning should account for Bangladesh’s graduation from Least Developed Country (LDC) status, evolving trade agreements, and geopolitical risks affecting energy markets.
CPD also urged the government to prioritise spending on health, education, agriculture and social protection, while reassessing infrastructure-heavy Annual Development Programme (ADP) allocations to support human capital development.
The think tank concluded that a balanced fiscal approach, combining prudent deficit management with targeted spending and structural reforms, will be essential to stabilise the economy and sustain growth in the medium term.
