Maintaining fiscal discipline while supporting growth is a delicate balance. Bangladesh aims to keep its fiscal deficit near or below 5% of GDP. The latest budget’s 3.6% deficit targe is ambitious but reflects a consensus that large deficits could worsen inflation. Policymakers are prioritizing revenue measures and subsidy cuts over heavy borrowing. However, simply cutting spending can hurt development. That’s why experts stress a “revenue-based consolidation”: for example, broadening the tax net or tightening tax administration rather than slashing essential programs. Recent indicators show the country is attempting this mix: higher revenue targets and controlled spending, with a focus on growth-friendly investments. If done well, Bangladesh can stabilize its public finances without stunting economic momentum, ensuring resources for health, education, and infrastructure remain in place.