Jamaat criticises proposed budget as ‘unrealistic’

Bangladesh Jamaat-e-Islami has strongly criticised the proposed national budget for the 2026–27 fiscal year, describing it as excessively loan-dependent, overly ambitious, unrealistic, and vulnerable to corruption and misuse of public funds.

Speaking at a press conference at the party’s central office in Moghbazar on Friday, the party’s Secretary General Mia Golam Parwar presented the party’s formal response to the budget.

In his written statement, Parwar said the proposed Tk9,38,000 crore budget relies heavily on domestic and foreign borrowing. He questioned the government’s ability to achieve its projected revenue target of Tk6,29,000 crore and said the budget failed to clearly explain how the projected deficit of Tk2,36,250 crore would be financed.

He also criticised the government’s dependence on bank borrowing, arguing that increased public-sector borrowing would reduce private-sector access to credit, ultimately discouraging investment and employment generation.

Parwar identified three major challenges to budget implementation– rising costs in the power and energy sectors, persistently high inflation, and global political and economic uncertainty.

He warned that these factors would make it difficult to achieve both revenue collection and implementation targets.

The Jamaat leader said the budget does not adequately reflect public expectations and lacks meaningful reforms in tax administration, anti-corruption efforts, and institutional accountability. Without stronger governance and oversight mechanisms, he cautioned, the risk of corruption, waste, and misappropriation of public funds would increase significantly.

Questioning the government’s economic projections, Parwar described the target of 6.5% GDP growth as overly optimistic, noting that several international organisations expect Bangladesh’s growth rate to remain below 5% next fiscal year.

He also said the government’s inflation target of 7.5% was inconsistent with current economic realities.

The party also opposed the increase in the Annual Development Programme (ADP) to Tk3,00,000 crore, arguing that expanding development spending without ensuring transparency and accountability would create further opportunities for inefficiency and corruption.

Parwar proposed changing Bangladesh’s fiscal year from the current July–June cycle to a January–December calendar-year system. He argued that the current arrangement encourages rushed project implementation during the monsoon season, often resulting in poor-quality work and increased corruption.

He further criticised the decision to raise the minimum personal income tax rate from 5% to 10%, saying it would place additional pressure on lower-middle-income and middle-class citizens.

He also expressed concern over increased VAT and duties on petroleum products, electricity, gas, and raw materials used in the garment industry, warning that such measures could increase living costs and undermine export competitiveness.

Comparing the government’s proposal with Jamaat’s alternative budget, Parwar said the party had proposed a smaller budget of Tk8,39,505 crore, a lower deficit equivalent to 2.43% of GDP, and more realistic revenue targets.

The Jamaat leader also voiced concern over developments in the banking sector, alleging widespread financial mismanagement, capital flight, and weakening regulatory oversight.

He criticised changes to the ownership structure of Islami Bank Bangladesh PLC, calling for the restoration of shares to previous owners at their original acquisition price.

Concluding his remarks, Parwar urged the government to permanently eliminate any provision for legalising undisclosed income and called on lawmakers to thoroughly debate and amend the budget before its passage on 30 June.

He warned against using the parliamentary majority to impose what he described as a “people-opposed budget” without adequate public consultation.

The press conference was moderated by Assistant Secretary General and former lawmaker AHM Hamidur Rahman Azad, and was attended by several senior party leaders.