In the face of an adverse economic environment, Finance Minister Abul Hassan Mahmood Ali faces limited spending options for the upcoming budget.

The dual challenges of a financial crisis and efforts to restore the economy constrain his fiscal flexibility. However, several notable changes are poised to make his inaugural budget memorable.

In the FY2024-25 budget, set to be unveiled in parliament on Thursday, Ali will introduce a contentious provision allowing the legalisation of untaxed money. This move has consistently faced strong criticism in previous years.

According to the budget speech, a 15 percent tax will be imposed on legalising black money. Additionally, the government will allow unconditional investment of black money in property purchases for a 15 per cent tax.

Analysts note that similar provisions in past budgets have yielded unsatisfactory results. A significant amount of money has been laundered abroad, contributing to a negative financial account balance.

By including this provision in the new budget, the government aims to repatriate money to bolster dwindling foreign currency reserves. Since 2009, when the Awami League came to power, approximately Tk 470 billion has been legalized, with about Tk 330 billion of that total legalized since then.