Largest deficit budget in history: Nahid

Published : Friday, 12 June, 2026 at 11:19 AM Count : 174

Opposition Chief Whip Nahid Islam on Thursday criticised the proposed national budget for FY2026-27, describing it as the "largest deficit budget in the country's history" and warning that it would increase the government's dependence on loans.

Speaking in an immediate reaction to the budget outside the Jatiya Sangsad complex, Nahid said the proposed Tk 9.38 trillion budget was unrealistic, particularly the revenue collection target of Tk 6.95 trillion.

He argued that achieving the target would require a 42 percent revenue growth rate, far above the country's highest recorded annual growth of 27.3 percent, resulting in a significant financing gap.

Nahid said the government would have to rely heavily on domestic and foreign borrowing to cover the deficit, which could crowd out private-sector investment, limit access to credit and reduce employment opportunities.

He also criticised the budget for lacking clear plans to reform the banking and financial sectors, recover laundered money and tackle loan defaults.

The opposition leader further expressed concern over growing public distrust in the banking sector, particularly surrounding Islamic banks, and warned that rising debt could fuel inflation.

Although the budget speech appeared attractive, Nahid said it failed to offer meaningful economic reforms or bring fundamental changes to the country's economy.