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The government plans to raise education spending to 5 percent of gross domestic product (GDP) and health spending to 2 percent, he said, adding that it intends to recruit 5,000 doctors and up to 1 lakh health workers.

Bangladesh’s banking sector could become the biggest obstacle to economic recovery unless urgent reforms are undertaken, PRI Chairman Zaidi Sattar warned yesterday, arguing that stronger banks are essential to restoring investment and sustaining growth.

He described the budget as a “useful stabilisation and confidence budget” that appropriately prioritises macroeconomic stability, fiscal discipline, expenditure efficiency and debt management.

While the government’s diagnosis of the economy’s key challenges is broadly accurate, the proposed remedies remain insufficient, Sattar said.

He noted that achieving the targeted 6.5 percent growth rate would require a substantial increase in investment, which is unlikely without comprehensive banking sector reforms.

Sattar called for independent asset quality reviews, bank-specific resolution plans, stronger governance, recapitalisation linked to restructuring and tougher action against wilful defaulters.

Echoing concerns over growth and implementation, Naser Ezaz Bijoy, former CEO of Standard Chartered Bangladesh, said the proposed budget seeks to balance macroeconomic stability with growth, but its success will depend on effective execution.

He described the budget as broadly business-friendly and praised the government for avoiding measures that could have undermined business activity despite difficult economic conditions.

However, he warned that the ambitious revenue target would be difficult to achieve. With revenue collection likely to fall short of this year’s target, aggressive collection efforts could place greater pressure on existing taxpayers.

Bijoy also cautioned against excessive bank borrowing to finance the budget deficit, saying it could worsen liquidity shortages, crowd out private-sector credit and push up interest rates.

He called for a clearer roadmap to curb inflation and accelerate reforms in banking, tax administration and governance. Gas shortages, he said, remain a major constraint on investment and industrial expansion.

MCCI President Kamran T Rahman said the proposed Tk 9.38 lakh crore budget comes at a critical time as Bangladesh seeks to revive growth, attract investment, generate employment and rein in inflation.

While welcoming measures to modernise tax administration and simplify business procedures, he expressed concern over the ambitious revenue target of Tk 6.95 lakh crore.

With revenue collection reaching only 65 percent of the revised target through April, he warned that undue pressure to meet the target could burden existing taxpayers.

Instead, he called for broadening the tax base and strengthening implementation capacity.

Hasan Mahmud, chairman of MCCI’s Tariff and Taxation Committee, said the proposed budget leaves several key concerns unresolved.

He criticised the unchanged minimum turnover tax, saying it imposes a burden on businesses regardless of profitability.

He also warned that higher personal tax rates and reduced tax rebates on investments would increase pressure on salaried taxpayers and discourage savings.