Opposition MPs question budget implementation capacity, warn of rising debt risks

Opposition and independent members of parliament have raised concerns over the country's economic stability, rising non-performing loans, money laundering, external debt uncertainty and weak accountability in public expenditure during discussions on the supplementary budget for FY 2025-26.

Speaking during the debate on cut motions in parliament today (15 June), MPs said there are serious questions about the government's capacity to implement the budget amid ongoing macroeconomic pressures.

The session was chaired by Speaker Hafiz Uddin Ahmed.

Participating in the discussion, independent MP Rumeen Farhana said the country's GDP size stands at Tk68 lakh crore, but economic growth has fallen to 3.49%.

She also noted that inflation remains at 9.5%, while non-performing loans have surged to 35.73% of total disbursed loans, amounting to around Tk6.44 lakh crore.

She added that private sector credit growth has dropped sharply from 22% to around 5%, while capital adequacy in the banking sector has turned negative.

Citing a white paper, Rumeen alleged around $234 billion has been laundered out of Bangladesh over the past 15 years.

She also referred to Global Financial Integrity data, which estimates that approximately $8 billion leaves the country annually through over- and under-invoicing.

"The banking sector has been used as a political tool. Loans have been given to individuals with no visible business activities, while interest rates and the dollar rate were influenced by political decisions. This has created severe pressure on the financial system," she said.

Rumeen also raised concerns over financing the budget deficit, saying the IMF has indicated that the next tranche of its previous loan programme will not continue automatically for the current government and a new agreement may be required.

"This means we may have to look toward China or other sources. But loans outside institutions like the World Bank, ADB and IMF come with higher interest rates and faster repayment pressure. In such a macroeconomic situation, how will the finance minister implement the budget?" she questioned.

Chattogram-15 MP Shahjahan Chowdhury said money laundering and weakness in the export sector have become major challenges for the economy.

He noted that while the white paper estimated $234 billion in illicit transfers, Bangladesh has become increasingly import-dependent without a corresponding rise in exports, adding further strain on the economy.

He also criticised the effectiveness of social safety net programmes, saying benefits are diluted as allocations are spread across too many sectors, preventing support from reaching the intended beneficiaries.

Another lawmaker, Kushtia-2 MP Md Abdul Gafur, opposed additional budget allocations, calling them a reflection of weak fiscal discipline and poor expenditure management.

He said ministries are initially given fixed budget allocations, but failure to control spending within those limits leads to demands for supplementary funds.

"If expenditure had been managed transparently and responsibly from the beginning, there would be no need to place additional pressure on public finances," he said.

Highlighting rising living costs, Gafur said ordinary citizens are struggling with the soaring prices of essential commodities.

"Prices of rice, lentils, oil and other essentials have gone beyond the purchasing capacity of ordinary people. Market syndicates and middlemen are active, but instead of effective monitoring, the government is seeking additional allocations," he said.

He proposed that supplementary budget allocations be reduced and redirected toward market regulation and subsidy support to ease public hardship.