TIB’s Dissatisfaction with Budget: Interim Government Moving Against Reform

Staff Reporter

Transparency International Bangladesh (TIB) has strongly condemned the decision to continue allowing whitening of black money in the proposed budget for the 2025-26 fiscal year.

The organization sharply criticized the interim government’s move, stating that it completely contradicts the core objectives of state reform, particularly the reform of the Anti-Corruption Commission. This decision is simultaneously unethical, discriminatory, and unconstitutional, TIB said.

In a press release sent to the media on Monday afternoon, the organization shared its reaction to the budget. The information was provided in a statement signed by Mohammad Touhidul Islam, Director (Outreach and Communication) of TIB.

In response to the announced budget for the 2025-26 fiscal year, TIB’s Executive Director Dr. Iftekharuzzaman said in the press release, “No matter how it is explained, it is clear that the interim government has blatantly ignored the primary objective of state reform—especially anti-corruption reform. At the same time, by encouraging corruption, it has surrendered to the power of the real estate lobby. Whatever the tax rate may be, this is a clear violation of Article 20(2) of the Constitution, which states that the state shall ensure that unearned income is illegal. The opportunity to whiten black money is also discriminatory because this decision will further consolidate the monopolistic control of illegal money holders in the housing sector, depriving honest earners of the opportunity to own flats or buildings.”

TIB’s Executive Director further said, “The most concerning and disappointing aspect is that this government decision will encourage corruption. In effect, the government is incentivizing citizens to accumulate illegal and undisclosed wealth throughout the year and promising to legitimize black money at year-end. The housing sector, which is being appeased as an excuse for legitimization, is itself identified as one of the most corrupt sectors in the country.”

He added, “We strongly demand the immediate and permanent abolition of this corruption-friendly opportunity to whiten black money, starting with its removal in the revised budget. At the same time, we demand investigating the sources of black money and holding those involved accountable, as well as ensuring equity and justice in the tax system.”

Dr. Iftekharuzzaman said, “TIB firmly believes that if the government wants to claim its stance against corruption is real and effective, all avenues for legitimizing black money must be permanently closed. Otherwise, anti-corruption campaigns and policy initiatives will be perceived by the public as mere eyewash, further entrenching the culture of normalized corruption and leaving governance reform promises as hollow rhetoric. It must be remembered that one of the key recommendations of the Anti-Corruption Commission Reform Committee formed by this government is to permanently close all avenues for legitimizing black money, a consensus already reached by all political parties. Yet, the interim government is contradicting itself by taking the opposite stance, embarrassing itself.”

Similarly, there was an expectation that the interim government would provide an update on the progress made in recovering the vast sums of money laundered from the country. However, the financial advisor merely used a single sentence to address this issue. Additionally, provisions have been made to impose taxes and penalties on the assets of individuals who have laundered money and subsequently renounced Bangladeshi citizenship.

However, the process for implementing this has not been clarified. Beyond this, the budget speech did not outline strategies to ensure transparency and accountability in revenue collection management, which TIB finds truly disappointing.