Economist Debapriya Bhattacharya has said that the new government faces significant challenges in preparing its first national budget amid structural weaknesses, incomplete reforms, and growing economic pressures. Speaking at a pre-budget media briefing titled “Citizen Thoughts and Expectations on the Budget” at the Centre for Policy Dialogue (CPD) office in Dhaka, he noted that maintaining fiscal discipline and prioritizing expenditures carefully are essential under current constraints.

Bhattacharya highlighted that the government is operating under severe budgetary limitations, making it difficult to balance spending and resources. He pointed to inherited liabilities from the previous government’s pay scale initiative, urging the formation of a new commission to review the issue. He also emphasized recovering illicitly transferred funds, expanding the tax base, and reducing inefficient subsidies, particularly in agriculture and energy. He identified four main pressures on the upcoming budget: structural weaknesses, election promises, limited fiscal space, and external imbalances.

He warned that without realistic expectations and effective short- and medium-term planning, the forthcoming budget may fail to stabilize the economy or sustain growth.