**Interim Government Prepares FY26 Budget with Focus on Structural Reforms**
The caretaker administration is scheduled to unveil its FY26 fiscal plan on June 2, marking a potential shift from traditional budgeting approaches. Operating without electoral pressures, the interim leadership is positioned to prioritize pragmatic reforms over populist measures, offering a unique opportunity to reshape fiscal strategy. While existing obligations will dominate much of the budget, expectations are high for innovative policies in sectors where flexibility exists.
Free from the need to court public favor, the government is expected to objectively balance budget priorities—assessing expenditures, revenue generation, and deficit management. However, inherent human biases and institutional constraints, such as limited tenure and bureaucratic challenges, may temper ambitious reforms. Key hurdles include addressing tax evasion (estimated at Tk 2.2 lakh crore in FY23) through streamlined tax codes and digitization, alongside cautious domestic borrowing to avoid stifling private-sector credit growth.
Expenditure allocations are likely to prioritize health, education, and social safety nets, critical amid a reported 30 million surge in poverty. The budget may also target inefficiencies in subsidies and development projects, redirecting funds to high-impact initiatives. Globally, declining commodity prices and shifting trade dynamics present opportunities, though reliance on external debt requires prudence to avoid burdening future generations.
The administration’s success hinges on balancing fiscal discipline with structural adjustments, such as tariff negotiations and anti-evasion measures, while navigating macroeconomic risks. Transparency in economic benchmarks and humility in policy execution will be vital to mitigate unintended consequences. As the interim phase progresses, stakeholders await actionable steps to align fiscal strategy with long-term stability and equitable growth.
*For continuous updates, follow trusted news sources.*
Source: Original Source