Laudable amid execution challenges

Say businesses

FE REPORT | Published: June 12, 2026 00:47:23

Business leaders and organisations broadly welcomed the proposed FY27 national budget on Thursday, describing it as investment-friendly, reform-oriented, and supportive of private sector growth.
However, a common concern across the community was that the budget's success would depend heavily on effective implementation.
Stakeholders questioned the feasibility of the ambitious revenue collection target, warned about the risks associated with financing a large budget deficit, and highlighted persistent weaknesses in public project execution.
Concerns were also raised over energy shortages, high borrowing costs, tax administration bottlenecks, and the need for greater policy predictability.
The Dhaka Chamber of Commerce and Industry (DCCI) described the budget as business- and investment-friendly, while cautioning that its success would depend on effective implementation and the attainment of ambitious revenue targets.
DCCI President Taskeen Ahmed said the budget reflected positive policy intent but faced significant execution challenges amid prevailing economic conditions.
The chamber noted that the government's projected revenue growth of 30.34 per cent would be difficult to achieve, while the plan to finance the Tk 2.43 trillion budget deficit through borrowing could put pressure on the banking sector and constrain private-sector credit flows.
The DCCI also observed that although the Annual Development Programme (ADP) had been increased by 30 per cent year-on-year to Tk 3.0 trillion, last year's implementation rate of only 36.19 per cent pointed to persistent weaknesses in project execution.
On taxation, the chamber praised several measures, including the treatment of withholding tax as advance tax, the reduction of tax on industrial raw materials to 4.0 per cent, and incentives for the healthcare, renewable energy and electric vehicle (EV) sectors.
However, DCCI expressed concern over the unchanged tax-free income threshold and the retention of the highest personal income tax rate at 35 per cent.
It recommended raising the tax-free income limit to Tk 500,000 to provide relief to middle-income earners.
Budget success to depend on implementation,
cost-reduction measures: BGMEA
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Mahmud Hasan Khan Babu welcomed the overall direction of the budget, saying its emphasis on investment facilitation and long-term policy stability could support industrial growth if implemented effectively.
He noted that the government had already announced a Tk 600-billion pre-budget support package, including around Tk 41 billion in refinancing facilities, which could deliver positive outcomes if properly utilised.
However, he stressed that the support measures should cover not only operational factories but also struggling and temporarily closed industrial units to ensure a broader recovery of the manufacturing sector.
Effective implementation, resolving
structural challenges are important: BKMEA
Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) President Mohammad Hatem said the budget contained several positive measures aimed at supporting investment and employment, but effective implementation and resolving structural challenges would determine whether the initiatives would deliver the intended results.
He said incentives for solar energy, medium-term policy commitments, and support for struggling factories were among the encouraging features of the budget.
"The policies are positive, but implementation will determine the outcome," he said, adding that streamlined procedures and efficient execution by the Bangladesh Bank and participating financial institutions would be crucial for translating policy announcements into jobs and investments.
Carefully calibrate fiscal measures to safeguard investments: ICAB
The president of the Institute of Chartered Accountants of Bangladesh (ICAB), NKA Mobin, welcomed the budget, describing it as strategic, forward-looking, and responsive to the prevailing domestic and global economic challenges.
The ICAB termed the budget reform-oriented, while urging careful calibrations of fiscal measures to safeguard investments and private sector growth.
Mobin noted that despite global uncertainties, including geopolitical tensions, inflationary pressures, rising commodity prices, and investment slowdown, the government's commitment to a development outlay of Tk 3.16 trillion, including Tk 3 trillion under the Annual Development Programme (ADP), was a positive signal for sustaining growth momentum.
Budget success to depend on implementation capacity amid persistent fiscal, structural challenges: BUILD
Business Initiative Leading Development (BUILD) described the budget as a progressive and business-friendly framework, but warned that its success would depend heavily on implementation capacity amid persistent fiscal and structural challenges.
The revenue target of Tk 6.95 trillion is seen as difficult to achieve without major improvements in tax administration and institutional efficiency.
Excessive reliance on domestic borrowing
may constrain pvt-sector credit: AmCham
The American Chamber of Commerce in Bangladesh (AmCham) welcomed the budget, describing it as a balanced and pragmatic plan aimed at strengthening macroeconomic stability, protecting vulnerable groups and supporting long-term economic growth.
Mandatory implementation of eVAT for large taxpayers without adequate transition support may create operational challenges: FICCI
The Foreign Investors' Chamber of Commerce and Industry (FICCI) welcomed the proposed Finance Bill 2026 and the budget, describing them as a positive step towards a more investment-friendly and digitally enabled tax regime.
Budget capable of steering country towards
trillion-dollar economy by 2034: CCCI
The Chittagong Chamber of Commerce and Industry (CCCI) welcomed the budget, describing it as people-friendly and business-friendly and also capable of steering Bangladesh towards a trillion-dollar economy by 2034.
CCCI leaders said the budget reflected a long-term vision combining fiscal expansion with welfare-oriented measures.
Overall tax burden on telecom sector concerning: AMTOB
The Association of Mobile Telecom Operators of Bangladesh (AMTOB) welcomed the proposed shift in mobile taxation in the budget, calling it a timely step towards modernising the country's telecom fiscal framework and expanding digital inclusion.
Sweeping reforms remain crucial: BEF
Bangladesh Employers Federation (BEF) said the budget sent a positive signal to both local and foreign investors, but warned that investment growth and job creation would depend on addressing persistent bottlenecks in the business environment.
BFE President Fazlee Shamim Ehsan said the government's emphasis on investment promotion, foreign investment attraction and easing business costs reflected a pro-growth approach aimed at stimulating the country's economic activities.