Dhaka, March 31 -- The new government of Bangladesh is facing challenges in formulating its first national budget amid mounting economic pressure, structural weaknesses and limited fiscal space, said eminent economist Dr Debapriya Bhattacharya on Tuesday.

Speaking at a media briefing titled 'Thoughts on the First Budget of the New Government', organised by the Citizen's Platform for SDGs in Dhanmondi, Debapriya said the government is effectively operating under a 'hard budget constraint' as they navigate incomplete reforms and rising macroeconomic challenges.

Debapriya, distinguished fellow of Centre for Policy Dialogue (CPD), said the upcoming FY2026-27 budget must balance immediate electoral commitments with urgent economic reforms wh...