The Centre for Policy Dialogue (CPD) has termed the proposed national budget for fiscal year 2026–27 a major step towards economic recovery, with a strong focus on human development, social protection and private sector-led growth.
Presenting CPD’s budget review, Executive Director Fahmida Khatun said the guiding theme of the budget, “Journey Towards a Democratic, Humane and Inclusive Economy”, reflects national priorities centred on jobs and public welfare.
She said the proposed budget points towards recovery driven by human development, private sector expansion and social protection. She added that alongside physical infrastructure, the budget places emphasis on employment, entrepreneurship, education, healthcare and welfare.
Fahmida Khatun said this approach broadly aligns with the BNP’s election manifesto, which prioritised job creation, private investment, business-friendly policies, deregulation and social sector improvement.
She made the observations at a media briefing titled “CPD’s Analysis of the National Budget FY2026–27” at a city hotel.
The executive director welcomed the proposed five-year roadmap for Personal Income Tax (PIT), saying it would help taxpayers plan future tax obligations with greater clarity.
She also praised the proposed incentive and penalty system for tax return submission, including a 5 percent incentive for early filing. She said it would improve compliance and reduce repeated deadline extensions.
Fahmida Khatun highlighted the cut in corporate tax for private universities, medical colleges and IT-based educational institutions from 15 per cent to 10 per cent. She said CPD had earlier recommended such support for the education sector.
She also noted that health and education remain among the top five priorities in the Annual Development Programme (ADP), calling it a positive signal.
According to her, health sector allocation has increased by around 50 per cent to Tk62,852 crore, while education allocation has risen by 28 per cent to Tk1,22,495 crore compared to the previous fiscal year.
She welcomed the introduction of the Family Card and Farmer’s Card programmes under the social protection framework.
CPD’ executive director said the Family Card programme will support around 41 lakh beneficiaries, including female-headed and landless households, making it the largest women-focused social protection initiative in the budget.
She added that the Farmer’s Card programme will benefit about 42.5 lakh marginal farmers through direct cash support and subsidised agricultural inputs, strengthening food security and rural development.
Fahmida Khatun also praised several green and technology-focused fiscal measures in the budget.
These include a zero percent tax rate for the solar power sector until 2035, lower annual income tax for electric vehicles, and removal of import duties on EV charging equipment.
She also noted the extension of VAT exemption on locally manufactured computers and ICT products until 2030, along with the proposal to remove SIM card taxes, which she said would expand digital access.
Fahmida Khatun said VAT exemptions on imported heart rings and intraocular lenses would help reduce healthcare costs.
In her concluding remarks, Khatun said the budget offers an important opportunity to accelerate economic recovery.
She added that its focus on entrepreneurship, education and social welfare provides a strong base for a more inclusive economy, provided implementation remains effective and efficient.
CPD Distinguished Fellow Professor Mustafizur Rahman also spoke at the event.
