Bangladesh’s newly unveiled Tk 7.90 trillion national budget for fiscal year 2025–26 offers a mixture of cautious optimism and sobering challenges, particularly for the country’s working-class families. Among those most affected are the 4.4 million workers in the ready-made garment (RMG) sector—long regarded as the engine of the nation’s export-driven economy.
The budget’s focus on curbing inflation and boosting government revenue is clear. Yet, it conspicuously lacks meaningful reforms targeting the low-income communities and industrial laborers who form the backbone of Bangladesh’s growth story. At Apon, we look beyond the numbers, considering how these policy decisions ripple through the daily lives of the women and men who power our factories and households.
New taxes on everyday essentials—soap, shampoo, children’s toys, and household electronics—threaten to increase the cost of living for these workers. Though a rise in cigarette taxes signals a nod toward public health, the overall tax structure risks placing an outsized burden on those least able to bear it. Minor concessions, such as reduced VAT on sanitary napkins and slight price drops on sugar and other staples, offer limited respite in an environment where basic expenses continue to climb.
Of particular concern is the reduction in budget allocations for agriculture, health, and rural development—sectors intimately linked to the welfare of garment workers and their families. With food inflation nearing 10 percent, cuts to these vital areas risk exacerbating vulnerabilities in nutrition and healthcare, underscoring a troubling gap in public investment for essential social safety nets.
Meaningful, lasting change for workers requires more than fiscal restraint; it demands targeted government investment in health, insurance, training, and infrastructure. As Bangladesh navigates global geopolitical uncertainties and evolving trade dynamics, the question remains: Will the government prioritize the wellbeing and development of its workforce?
The RMG sector stands at a crossroads, pressured by international competition, domestic inflation, and shifting political landscapes. Yet the budget falls short of addressing these urgent realities. We urge policymakers, industry leaders, and partners to recognize that securing Bangladesh’s economic future hinges on meaningful investments in the health, training, and infrastructure of its workforce.
Only through such commitment can the country hope to sustain the communities at the heart of its growth. It is our expectation that the government will not only make these investments but also begin actively incentivising and promoting partnerships with the private sector to build effective worker safety nets—drawing from globally proven models. A coordinated approach between public and private actors is essential if we are to ensure long-term resilience and wellbeing for Bangladesh’s working class.
