Weak revenue mobilisation, declining ADP implementation, inflation above 9 per cent, reduced overseas migration, and GDP growth of 1.81 per cent—all fell short of targets. Overly optimistic FY2025 macroeconomic targets led to unrealistic budgetary goals disconnected from economic realities. NBR formed a five-member Advisory Committee to propose reforms for the taxation system. Rural areas experienced higher CPI inflation than urban ones for 18 of 23 months between April 2023 and February 2025. The power and energy sector continued facing challenges, including unpaid import bills, loan repayments, supply disruptions, lack of domestic gas exploration, and rising consumer tariffs due to subsidy burdens. High financing costs and economic pressures continue forcing SMEs to shut down, leading to job losses and limited loan access. Health allocation in FY2025 was 5.20 per cent of the total budget and 0.74 per cent of GDP.. The FY2025 education budget was BDT 94,711 crore (1.69 per cent of GDP), but actual expenditures are typically lower than allocations. Fiscal policies lack sufficient incentives and funding to support a green transition and sustainable production.
Publication Period: March 2025
