Dhaka: Finance adviser Salehuddin Ahmed has said the upcoming budget cannot be described as ambitious as there will be no false assurances. Its size will be comparatively reduced, due to limitations in resources.

He came up with the statement while speaking to Prothom Alo during a special interview at his secretariat office on 21 May.

The adviser is scheduled to announce the budget for 2025-26 fiscal year on 2 June. In the interview, he talked about different issues, including macroeconomics, banking sector, capital market, and NBR.

When asked about the distinctive features of the budget, Salehuddin Ahmed said it cannot be termed as ambitious under any circumstances. There will be no unrealistic, unachievable, and false assurances. Due to resource limitations, the budget size would be reduced.

He, however, acknowledged the need for borrowing, saying the government would seek loans from both domestic and foreign sources, but limit borrowing from local sources. The budget deficit will be kept below 5 per cent of GDP.

The finance adviser identified controlling inflation and ensuring macroeconomic stability as the key challenges for the upcoming budget.

“It’s a big challenge to control inflation, and we have taken it. Also, there is an issue of maintaining macroeconomic stability – not just maintaining it, but making it sustainable. Another key challenge is reviving the private sector,” he said.

About undertaking mega projects despite a 7 per cent credit growth in the private sector and around 7 per cent tax-to-GDP ratio, the adviser said there will be no mega projects like metro rail and the Padma bridge.

“What you are describing as mega is not actually a mega project. For example, the Bay terminal project requires about USD 1 billion. It is not a big project like the metro rail or the Padma bridge,” he noted.