Mahmudur Rahman Manna, president of Nagorik Oikko, has criticised the proposed national budget for the 2026-27 fiscal year, stating that while the fiscal plan is filled with optimism, it fails to draw any lessons from past experiences.
In his immediate reaction following the presentation of the budget in the National Parliament on Thursday, the veteran politician remarked that the pressure of a massive deficit budget would ultimately fall upon the general public.
He warned that the government’s reliance on bank loans to bridge this deficit is set to increase significantly.
‘Aimless’ financial planning Manna described the budget as the largest in the country’s history but argued it lacks a specific plan for sourcing the required funds. He claimed the government has followed its traditional path of announcing an “aimless” and massive budget.
According to Manna, instead of focusing on direct taxes, the government intends to fund the budget by imposing the burden of indirect taxes on ordinary citizens.
He further noted that the government has failed to review previous failures, such as the inability to meet revenue collection targets, the steady rise of defaulted loans, and the failure to control market syndicates. Manna cautioned that these oversights would lead to increased inflation and widened income inequality.
The Nagorik Oikya President expressed grave concerns regarding the housing sector, suggesting it could fall entirely into the hands of “miscreants,” potentially pushing the price of land and flats beyond the reach of the common man.
He pointed out that the budget offers no clear or effective directions for balancing the revenue-to-GDP ratio, addressing weaknesses in the banking sector, or reducing defaulted loans.
Manna highlighted that issues such as the control of market syndicates and corruption in the power and energy sectors were ignored. He argued that social protection allocations were made with an eye on the election manifesto rather than an evaluation of economic realities.
Manna observed that the government has maintained its tendency to show inflated allocations for the education, health, and social protection sectors. Despite mentions of job creation, he asserted that there is no effective guidance provided for generating new employment.
While noting that the proposed budget moves away from the contractionary policies of the last two years toward an expansionary framework aimed at growth recovery, Manna lamented the lack of specific directions for its implementation.
He acknowledged that while there are positive aspects for investors, these would require transparency and efficiency to be successfully realised.
