Debt-Heavy Budget Could Pose Risks to Fiscal Discipline: Dr. Debapriya Bhattacharya

Economist and Distinguished Fellow Dr. Debapriya Bhattacharya has warned that the proposed 2026–27 national budget, which relies heavily on borrowing, could pose challenges to fiscal discipline in the country.

He made the remarks in an immediate reaction after the budget session at the National Parliament complex on Thursday.

Dr. Bhattacharya said the budget shows a comparatively higher dependence on external borrowing, along with large lump-sum allocations across various sectors, which may create risks for maintaining fiscal discipline in the future. According to him, the success of the budget will ultimately depend on its effective implementation.

He noted that the budget’s emphasis on building a humane economy and allocations for youth and marginalized communities is positive. However, he argued that the financial foundation required to implement these policy goals appears relatively weak.

The economist further cautioned that reliance on foreign borrowing and large discretionary allocations could place pressure on future fiscal management.

He added that while goals such as liberalization, a humane economy, and digital inclusion are important, questions remain about the financial capacity and administrative efficiency needed for implementation.

He concluded that the key challenge ahead will be how effectively the government can implement reforms while maintaining continuity and discipline in fiscal management.