National Citizen Party (NCP) on Saturday unveiled a Tk852,157 crore shadow budget for FY2026–27, proposing sweeping fiscal, tax and governance reforms aimed at expanding jobs, boosting investment and tightening fiscal discipline while cutting waste, corruption and inefficiencies in public spending.
The proposal, titled “Bangladesh 2.0: Sustainable Growth Through Reform, Jobs & Investment”, argues that weak governance, institutional corruption, revenue leakages and inefficient expenditure have eroded public trust and economic performance. It also criticises infrastructure-led development for widening regional disparities between urban centres and rural, coastal and vulnerable areas.
Under the macroeconomic framework, nominal gross domestic product (GDP) is projected at Tk68.70 lakh crore. Revenue is targeted at Tk6.40 lakh crore, or 9.32 per cent of GDP, up from Tk5.64 lakh crore or 9.03 per cent in the previous budget. Total expenditure is set at Tk8.52 lakh crore, or 12.4 per cent of GDP, while the fiscal deficit is proposed to narrow to 3.09 per cent of GDP from 3.6 per cent.
The Annual Development Programme is set at Tk2.53 lakh crore, maintaining a 3.68 per cent share of GDP, while domestic borrowing from the banking system is reduced to Tk85,000 crore from Tk99,000 crore to ease pressure on private sector credit.
In capital market and debt reforms, NCP proposes Tk10,000 crore in capital receipts through the listing of minority stakes in state-owned enterprises on local stock exchanges. The divestment plan is tied to a Debt Retirement Covenant aimed at containing long-term public debt risks.
A major revenue mobilisation proposal makes income tax return filing mandatory for households consuming more than 75 kilowatt-hours of electricity a month, which NCP estimates could bring about 14 million new taxpayers into the system while exempting the bottom 65 per cent of consumers.
To reduce leakages, the plan mandates linking bank accounts and mobile financial services accounts with National Identity cards by December 2026, projected to recover Tk15,000 crore in undeclared income. It also proposes a National Digital Asset Registry in four major cities to collect Tk20,000 crore in advance income tax on rental income, alongside full automation of major ports expected to recover another Tk20,000 crore from customs leakages.
On equity and taxation, the proposal raises the tax-free income threshold to Tk4.5 lakh from Tk3.5 lakh and introduces a progressive estate tax on wealth above Tk5 crore, projected to raise Tk3,000 crore from ultra-high-net-worth individuals. Zakat paid through official channels would qualify for income tax rebates.
Spending priorities shift strongly towards human capital and innovation. Education and technology are allocated Tk1.24 lakh crore, or 14.6 per cent of total expenditure, including a Tk5,000 crore Teacher Quality Fund, expanded school feeding programmes, phased nationalisation of 75 per cent of MPO-listed institutions over five years, and a Tk500 crore Startup Guarantee Fund.
Health and family welfare allocation rises 25 per cent to Tk52,338 crore, including a national health insurance pilot in five districts for families earning below Tk3 lakh annually. The plan also proposes specialised healthcare zones in Mymensingh and Barisal to retain part of the estimated $400 million spent annually on overseas medical treatment.
To reduce the $12 billion petroleum import bill, the proposal introduces zero per cent tax incidence on solar equipment for five years and a 15 per cent tax incidence on completely knocked down electric vehicle kits to promote domestic manufacturing.
A Tk2,000 annual operating licence fee on the country’s 40 lakh auto-rickshaws is proposed to finance low-interest loans for replacing lead-acid batteries with lithium alternatives.
Water, sanitation and hygiene allocation is raised 37.6 per cent to Tk15,000 crore, with 40 per cent earmarked for rural piped-water systems and 15 per cent for chars, haors and coastal regions.
At the centre of the fiscal plan is a public accountability platform, Hisaab Dao, designed to publish real-time expenditure data for ministries and disclose all public procurement contracts above Tk10 lakh.
In financial sector reforms, NCP caps domestic bank borrowing at Tk85,000 crore to reduce crowding out of private credit. It also proposes Tk10,000 crore from minority stake sales in state-owned enterprises under the same Debt Retirement Covenant framework.
The proposal mandates full linkage of bank and mobile financial services accounts with National Identity cards by December 2026, projected to recover Tk15,000 crore in undeclared income, and includes a Tk500 crore Startup Guarantee Fund to support youth entrepreneurship.
NCP said the shadow budget demonstrates that Bangladesh can expand employment, stimulate domestic demand and strengthen public services while improving fiscal transparency and maintaining macroeconomic stability.
