The national budget for FY2024-25 (FY25) will be the first budget prepared by the incumbent government. It will also be prepared under new leadership at the Ministry of Finance.

As a share of Gross Domestic Product (GDP), the country’s major public finance correlates were lower than the previous year. According to data from the Ministry of Finance (MoF), the revenue-GDP ratio of 8.2 per cent in FY2023 fell short of the budgetary target of 9.8 per cent.

It was earlier, in May 2023, pointed out that a significant share of Bangladesh’s on-going macroeconomic challenges originated in the dismal performance of the external sector and the uncertainties faced by the external sector balance

The banking sector in Bangladesh has encountered numerous challenges over an extended period. Its weaknesses have been consistently exposed through high loan default rates and subpar performance across various indicators.

Sustainability reporting is a common practice that discloses an organisation’s economic, social, environmental, and governance practices to stakeholders. It increases transparency and accountability, involves data collection and progress evaluation, and contributes to global sustainable development

While the economy was already reeling under immense pressure due to the ramifications of the Covid-19 pandemic, the situation on the eve of presentation of FY23 budget was exacerbated by the rising pent up demand and price hike in global commodity market consequent to the advent of Russia-Ukraine war in late February 2022.

The recent challenges facing the country’s external sector have been exacerbated by pent up post-covid demand, recent price hike of essential commodities in the global market and the consequent rise in imports payments, depreciation-induced imported inflation, recessionary fear-induced depressed demand for Bangladesh’s exports

The economy of Bangladesh faces a number of longstanding structural weaknesses. These weaknesses have exacerbated owing to several external factors including the Covid-19 pandemic, the Russia-Ukraine war and consequent supply chain disruptions.

The national budget for FY23 has been placed at a time when the economy is facing considerable challenges. Indeed, the macroeconomic stability has significantly weakened amid negative developments both on domestic and external fronts.

The struggle of the poor and low-income group that began with the outbreak of Covid-19 in early 2020 is now worsened by the unabated rise in the prices of essentials. These people are still grappling with their limited budgets as the pressure of price hikes continues to mount.