The Centre for Policy Dialogue (CPD) on Tuesday criticised the proposed national budget for the fiscal year 2025–26, saying it lacks alignment with the ideals of an equitable society, particularly in the wake of the July transition.

In a press conference titled ‘CPD’s Review of the National Budget 2025–26’, the think tank raised concerns over existing inequalities, especially in the taxation framework.

CPD Executive Director Dr Fahmida Khatun stated that the budget was expected to be people-centric and focused on holistic national development, rather than merely promoting growth and physical infrastructure.

“However, the budget presented by the Economic Adviser does not reflect that commitment,” she said.

Referring to the issue of tax-free income, CPD noted that while the limit has been proposed to increase from Tk 3.5 lakh to Tk 3.75 lakh, it will only come into effect in the 2026–27 and 2027–28 fiscal years.

Compared to projected inflation at that time, this relief is ‘insignificant’, the organisation said.

Like in previous years, the tax burden will fall heavily on the lower-middle and middle-income groups, especially those earning between Tk 6 lakh and Tk 16 lakh annually, CPD warned.

In contrast, people with annual incomes above Tk 30 lakh will enjoy relatively lower tax rates, a disparity CPD described as a clear sign of inequality.

Describing the 6.5% inflation target set in the budget as ‘ambitious’, Dr Fahmida noted that recent monthly trends suggest the government will struggle to contain inflation within that limit. “Keeping annual inflation at 6.5% will be a challenging task for the government,” she said.

Commenting on revenue projections, CPD Fellow Dr Mustafizur Rahman said achieving the ambitious revenue target will be difficult as the revenue administration remains unreformed. “The government has virtually surrendered to the revenue department in this budget.”