Prime Minister Tarique Rahman on Monday described the proposed national budget for fiscal year 2026-27 as a "life-friendly budget", saying it aims to provide relief for people from all walks of life and act as a roadmap for rebuilding the nation while reviving an economy weakened by years of corruption and mismanagement.
Joining the general discussion on the proposed budget in Parliament, the Prime Minister also proposed a series of tax concessions and urged the finance minister to withdraw several controversial budget provisions in response to public concerns.
PM calls proposed budget a roadmap for nation-rebuilding, equitable development
“I would like to name this budget a ‘Jibon Bandhob Budget’ (life-friendly budget). Using our highest wisdom, conscience and knowledge, we have tried to present a budget through which people of all classes and professions can find at least some relief and comfort,” Tarique Rahman said.
He also urged lawmakers across party lines to view the proposed budget as a roadmap for nation-rebuilding, saying the government is committed to fostering an inclusive economy, equitable development and a dignified life for all citizens.
“This budget should not be seen only as the government's budget. Let us view it as a budget for rebuilding the nation. We want to build a Bangladesh where development is based on fairness, the economy is inclusive, the state is welfare-oriented, and citizens enjoy a safe, dignified and promising life,” the Prime Minister said.
He also highlighted the government's efforts to recover assets allegedly siphoned abroad during the previous regime.
Tarique Rahman said Bangladesh has already sent 23 Mutual Legal Assistance Requests to 13 countries seeking cooperation in tracing and recovering laundered assets.
He said agreements have been finalised under international legal frameworks and several affected banks have signed more than 60 non-disclosure agreements with international asset recovery organisations.
Describing the budget as one of the most important instruments of state policy, Tarique Rahman said the government made every effort to place a realistic and practical budget before Parliament.
“Whatever budget we present, it is not possible to solve every problem overnight. The realities are difficult. Even then, considering all aspects, we have tried to formulate a budget that would provide at least some relief to people across all classes and professions,” he said.
Highlighting the budget's consumer-friendly measures, the Prime Minister said taxes and duties on 61 essential commodities were withdrawn.
He said in previous years it was common to see sudden price hikes in daily necessities before and after budget announcements often without any clear justification.
“By the grace of Almighty Allah, we did not witness such abnormal increases this time. Through the withdrawal of taxes on essential goods, we believe we have been able to fulfil at least part of our responsibility to the people and provide them with some relief,” the Prime Minister said.
He acknowledged that no budget can fully satisfy everyone, but said the government had carefully considered practical realities and competing demands while preparing the fiscal plan.
Tarique Rahman also spoke at length about the economic situation inherited by his government when it assumed office on February 17.
He said the government took charge of a fragile economy marked by corruption, mismanagement, looting of public resources and policy failures.
The Prime Minister said large-scale capital flight, declining investment and soaring inflation had left ordinary people struggling in the years before his government took office.
“Thousands of crores of taka were siphoned out of the country. Production and investment had nearly stagnated. Inflation had reached a level that people could feel in their daily lives,” he said.
Tarique Rahman also referred to difficulties in the capital market, saying many investors had lost their savings, while foreign exchange reserves had come under severe pressure due to capital flight and wasteful expenditure.
He alleged that a number of large-scale projects undertaken by previous administration had become a burden on the nation because they generated little revenue despite being financed through domestic and foreign borrowing.
Acknowledging that economic challenges remain, the Prime Minister said the government has no intention of denying the difficulties facing the country. “We do not want to deny the crisis, nor can we afford to do so. That would be foolish.”
At the same time, he said the government will not use the challenges as an excuse for inaction.
Tarique Rahman expressed confidence that Bangladesh will gradually overcome its economic difficulties and move towards greater stability and growth.
He said the budget session itself reflected the country's democratic progress, as lawmakers from different political parties and independent members were able to engage in civilised discussions on issues concerning the nation and its people, crediting the people of Bangladesh for helping create an environment where constructive political dialogue could take place.
Tarique Rahman called for national unity to ensure that no form of fascism or authoritarian rule can return to Bangladesh, stating that political differences should not stand in the way of national interests.
He also highlighted the importance of an independent judiciary in protecting democracy, the rule of law and human rights.
The Prime Minister stressed the need for a professional, honest and efficient civil administration, saying better public services require a skilled bureaucracy operating in an environment free from unnecessary political interference.
Referring to the sacrifices made during the struggle for democracy, he said many political leaders and activists from different parties suffered repression, imprisonment and even lost their lives. “We are indebted to them. That is why we must act more responsibly,” he said.
On constitutional and political reforms, the Prime Minister said lawmakers should work together on issues, including constitutional amendments and initiatives linked to the proposed July Charter. “Just as we can work together inside Parliament on constitutional reforms and other issues, we can also build public consensus outside Parliament on important national matters and undertake reform programmes to move the country forward,” he said.
Turning to the “Teesta Barrage Master Plan”, the Prime Minister pledged to implement it at any cost, describing it as a national priority and a key step towards ensuring water security, supporting agriculture and improving livelihoods in northern Bangladesh.
He said the government is committed to addressing the country's long-standing water management challenges through major investments in rivers, canals and irrigation infrastructure. “On the basis of national priority, this government will implement the Teesta Barrage Master Plan at any cost, InshaAllah,” he said.
Tarique Rahman said water remains one of the biggest concerns for people in the northern districts, particularly in the Rajshahi and Rangpur regions, where MPs regularly raise issues relating to the Padma and Teesta Rivers.
He said ensuring year-round water availability for agriculture is one of the government's key objectives.
The Prime Minister announced that the government has already taken steps to construct the Padma Barrage to store excess monsoon water for use during the dry season. “Through the Padma Barrage, we will preserve surplus water during the monsoon so that it can be supplied to farmers and other users throughout the dry months and the rest of the year,” he said.
He said Bangladesh has long suffered from the absence of an integrated approach to river management, water conservation, flood control and inter-river connectivity.
He noted that many rivers lost navigability over the years, affecting irrigation and water availability in different parts of the country.
“I have visited areas where there is water everywhere during the monsoon, yet farmers just a short distance away cannot irrigate their land because of water shortages,” Tarique Rahman said.
To address the problem, he said the government has started dredging and re-excavating rivers and canals across the country.
The Prime Minister said the government plans to excavate and re-excavate 20,000 kilometres of canals over the next five years to improve water flow, irrigation and flood management.
He said around 900 kilometres of canals had already been excavated or re-excavated over the past three months.
“We have received some complaints in certain areas. We are reviewing those issues and will take further action where necessary,” Tarique Rahman said.
Highlighting the government's support for farmers, Tarique recalled that one of its first major decisions after assuming office was to waive agricultural loans of up to Tk 10,000, including interest. He said around 13 lakh farmers benefited from the move.
The Prime Minister also said the government has introducing a special Farmers' Card to provide direct support and benefits for cultivators.
Under the programme, about 43 lakh farmers are expected to receive financial assistance and at least 10 additional services during FY27, he said.
Tarique Rahman also highlighted efforts to create employment opportunities for young people, improve skills development and expand overseas job markets for Bangladeshi workers.
He said the government is working to send more skilled workers abroad and strengthen support services for expatriate Bangladeshis.
As part of that effort, the Prime Minister said the government is developing a “Probashi Card” to help expatriates access various services and reduce the difficulties they face while living overseas.
He also underscored the importance of energy security, saying a reliable energy supply was essential not only for economic growth but also for national security.
Tarique Rahman criticised what he described as years of corruption, poor planning and neglect in the energy sector, alleging that domestic gas exploration had been overlooked while excessive dependence was placed on foreign companies.
He said the government is now focusing on energy diversification, domestic gas exploration, renewable energy and greater energy efficiency to reduce dependence on imported fuel. “The recent crisis in the Middle East has once again shown how vulnerable import-dependent energy systems can be,” he said.
The Prime Minister also said the government's broader goal is to build a stronger and more resilient economy capable of supporting Bangladesh's long-term development ambitions.
He later turned to education, saying an educated and morally grounded population was the country's greatest asset.
Tarique Rahman alleged that the education system has been systematically weakened during the previous regime and stressed the need for comprehensive reforms to prepare future generations for the challenges ahead.
Meanwhile, the Prime Minister proposed raising the income tax-free threshold for individual taxpayers over the next five fiscal years and urged the finance minister to withdraw several controversial provisions in the proposed national budget in response to public concerns.
He proposed setting the tax-free threshold at Tk 400,000 for FY27 and FY28, Tk 450,000 for FY29 and FY30, and Tk 500,000 for FY31. The budget had proposed thresholds of Tk 375,000, Tk 400,000 and Tk 450,000 respectively for those periods.
Referring to the proposed provision relating to the disclosure of investments, Tarique Rahman said it has generated widespread public concern and misunderstanding.
He explained that the proposal had originally been intended to spare taxpayers from complications arising because many land transactions are registered at mouza values rather than actual market prices.
"Unfortunately, some people have interpreted it as an opportunity to legalise undisclosed money," the Prime Minister said, requesting the finance minister to withdraw the provision respecting public opinion.
He also called for the withdrawal of two other proposed measures that have created confusion among the public – making the submission of Taxpayer Identification Number (TIN) certificates mandatory for opening most bank accounts and for the registration of partition deeds and property mutations.
Tarique Rahman proposed reducing the income tax rate for private universities from the existing 10 percent to 5 percent.
He also sought an expansion of tax exemptions for indigenous communities in the three hill districts as well as plain land, proposing that salary income, along with income from business, agriculture and other economic activities, be exempt from tax.
To boost shrimp farming and exports, the Prime Minister proposed withdrawing customs duties, regulatory duties, supplementary duties and VAT on imported shrimp feed, probiotics, vitamins, minerals and other essential inputs, as well as on necessary machinery.
He called for duty concessions on imported raw materials used by local industries and requested the complete withdrawal of the 10 percent supplementary duty on imported honey used by pharmaceutical and other manufacturing industries.
Tarique Rahman also proposed reducing the proposed 10 percent import duty on PVC and PET resin, widely used as industrial raw materials, to 5 percent.
He urged the withdrawal of proposed regulatory duties on imported cold-rolled sheets used in fire door manufacturing, coated chromium oxide used in flat steel products, and refined copper wire used by electrical cable manufacturers.
The Prime Minister further proposed abolishing the proposed 15 percent VAT and advance tax on imported fire bricks.
He requested that the customs duty on unprocessed cashew nuts, imported as raw materials for the cashew nut processing industry, be reduced from 15 percent to 5 percent.
Tarique Rahman also requested a review of VAT rates on gold, platinum, diamond and silver jewellery, the complete exemption of the 15 percent VAT applicable to revenue-sharing arrangements with the Bangladesh Telecommunication Regulatory Commission (BTRC), and full VAT exemption at the supplier level for all fish supplies.
To promote domestic automobile manufacturing, he proposed reducing VAT on the local production of double-cabin pickup trucks and microbuses from 15 percent to 5 percent.
On June 11, Finance Minister Amir Khosru Mahmud Chowdhury placed the national budget for FY2026-27 in Parliament, proposing a Tk 9.38 lakh crore outlay aimed at containing inflation, reducing the cost of living, stimulating investment, strengthening social protection programmes and maintaining fiscal discipline.