The Council of Advisers has approved the national budget for the fiscal year 2025-26, but with a significant change: the controversial provision allowing undisclosed money to be legalised has been dropped.

The budget was ratified during a meeting chaired by Chief Adviser Professor Muhammad Yunus at his Tejgaon office. However, the proposed continuation of the money whitening provision, which would have allowed individuals to disclose previously hidden income in exchange for paying a nominal tax, was not approved.

This provision had drawn significant criticism from various quarters, with Transparency International Bangladesh (TIB) being one of the most vocal opponents. The organisation strongly condemned the proposal, describing it as inconsistent with the core principles of state reform, particularly in relation to the work of the Anti-Corruption Commission.

In a statement issued on 2nd June, TIB’s Executive Director, Dr Iftekharuzzaman, said: “Regardless of how it may be justified, this proposal undermines the fundamental goals of state reform, especially anti-corruption efforts. It reveals how the interim government has surrendered to the influence of the real estate lobby, enabling corruption. The provision violates Article 20(2) of the Constitution, which commits the state to preventing the accumulation of unearned income.”

Dr Iftekharuzzaman also highlighted concerns that the provision would disproportionately benefit the real estate sector, turning it into an exclusive market for illicit wealth, while making it more difficult for law-abiding citizens to afford property. “It is discriminatory and would further entrench the real estate market as a haven for those with illicit income, leaving honest earners struggling to afford property,” he added.

Despite the removal of the controversial provision, the approval of the national budget marks a key step for the government in managing the country’s finances for the upcoming fiscal year.