National Budget
FBCCI welcomes budget, flags revenue target, implementation as key challenges
Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) on Saturday welcomed the proposed national budget for fiscal year 2026-27, describing it as pragmatic and implementable, while flagging revenue mobilisation and efficient execution as the two most critical challenges ahead.
In a written reaction to the Tk 9,38,000 crore budget, the country's largest ever and 18.7 per cent higher than the outgoing fiscal year, the apex trade body extended its congratulations to the Prime Minister and Finance Minister, noting that the budget gives priority to economic stability, investment, employment, production and social justice.
“The size of the budget is large but implementation is not impossible, what is needed is foresight, efficiency and transparency,” FBCCI said in its statement on Saturday.
FBCCI expressed optimism over the government's adoption of the "3R" framework: Recovery and Stabilisation, Restoration and Reconstruction, as the guiding economic strategy, saying it would help restore macroeconomic stability, boost investment and foster inclusive and sustainable growth.
The body also supported GDP growth and inflation targets set at 6.5 per cent and 7.5 per cent respectively, expressing hope that disciplined fiscal management would help ordinary citizens regain purchasing power.
FBCCI acknowledged that the total revenue target of Tk 6,95,000 crore, equivalent to 10.2 per cent of GDP, with the National Board of Revenue (NBR) assigned Tk 6,04,000 crore, represents a formidable challenge given current domestic and global economic conditions.
The federation urged structural reforms at NBR and a revenue management system conducive to growth, trade and investment to meet the target.
On the budget deficit of Tk 2,43,000 crore, 3.6 per cent of GDP, FBCCI cautioned the government to exercise restraint in borrowing from the banking sector, as it crowds out private sector credit and adversely affects investment and employment. It recommended greater reliance on concessional external financing at reasonable interest rates.
The total interest payment burden, Tk 1,05,000 crore in domestic interest and Tk 22,500 crore in foreign debt servicing was described as a significant fiscal pressure.
In a wide-ranging set of recommendations, FBCCI called on the government to focus on: Activation of investment-friendly economic zones; export diversification and new market exploration; human resource development in IT and electronics; reduction of administrative red tape and cost of doing business.
Besides, strengthening of the capital market and expansion of the bond market; improved accountability in ADP implementation; interest rate reduction and banking sector reform; uninterrupted power and energy supply; logistics and supply chain efficiency; and development of legal frameworks for free trade zones were among the recommendations.
FBCCI welcomed several budget provisions it said reflected its own prior proposals, including: mandatory online VAT return filing, quarterly VAT submission, online income tax return and refund systems, online single-window services, and an expanded plug-and-play industrial facility.
The body also praised the raising of the tax-free income ceiling from Tk 3,50,000 to Tk 3,75,000 with provisions for gradual future increases, though it urged the government to maintain the 5 per cent tax slab and reduce the top tax rate from 35 per cent to 25 per cent.
Welcoming the five-year lock-in on corporate tax rates, FBCCI also sought a 2.5 per cent reduction for listed companies to enhance competitiveness, and proposed lowering the minimum turnover tax on sales from 1 per cent to 0.5 per cent given the current slowdown.
Among specific measures appreciated, FBCCI highlighted: the reduction of advance income tax on industrial raw material imports from 5 per cent to 4 per cent; reduction of source taxes on basic agricultural commodities including rice, wheat, potato, onion, garlic, ginger, salt, sugar and edible oil to 0.5 per cent; complete withdrawal of the 5 per cent regulatory duty on import of dates and all cooking spices; and reduced withholding tax on foreign loan interest for industrial investment from 20 per cent to 10 per cent.
The federation also welcomed the full import duty waiver, along with VAT and supplementary duty on laptops, desktop computers, servers, printers and monitors, calling it a major push for IT sector development.
On social protection, FBCCI commended free train travel for senior citizens above 65 years of age, a 25 per cent metro rail discount, and expansion in the number and coverage of social safety net beneficiaries.
FBCCI welcomed the government's Tk 60,000 crore “Stimulus Package 2026” for easing credit flow to the private sector, along with a Tk 2,000 crore allocation for SME development through IDCOL, BIFFL and the SME Foundation. An additional Tk 500 crore allocation for women and youth entrepreneurship was termed a positive step.
Tax and VAT exemptions for startup companies — including zero turnover tax, and full VAT exemption on local purchases and premises rental for startups were also praised.
The proposed 20 per cent renewable energy target by 2030 and zero-import-duty on solar energy equipment until 2035 received FBCCI's support as part of a push for a sustainable energy framework.
On the gold and jewellery sector, FBCCI praised the reduction of source tax on gold imports from 5 per cent to 0.5 per cent under the new bonded warehouse regulations, and supported the proposed replacement of 5 per cent VAT on jewellery services with a fixed charge of Tk 2,500 per unit.
FBCCI said it is currently reviewing the Finance Bill and related income tax, VAT and customs notifications in consultation with its member organisations, and will submit a comprehensive set of post-budget recommendations to the government after the review is complete.
7 days ago
Budget 2026-27: Govt unveils Tk 10,533 cr plan to boost water resources sector
Finance Minister Amir Khosru Mahmud Chowdhury on Thursday said the government is implementing a wide range of projects on irrigation, flood management, riverbank protection, waterlogging mitigation, drainage improvement and salinity control as part of its sustainable water resources management strategy.
He said special initiatives have been taken to restore at least one river in each division by removing illegal encroachments to maintain ecological balance.
Under seven ongoing projects, measures are being implemented to clear encroachments and restore the natural flow of several rivers including Dhaleshwari, Louhajang, Alaikuri, Mogra, Salta, Sutang, Bakkhali and Barnai, the Minister said while placing budget in Parliament.
The minister said a Water Quality Index (WQI) has been developed for rivers surrounding Dhaka, while an AI and deep learning-based real-time dashboard has been introduced to monitor groundwater levels, aiming to strengthen data-driven water governance.
He further informed the House that the Ministry of Water Resources is implementing a nationwide programme titled “Excavation and Re-excavation of Rivers, Canals and Water Reservoirs,” under which 20,000 kilometres of canals, rivers and drainage channels are planned to be excavated over the next five years by relevant ministries.
In FY 2026–27 alone, the ministry plans to excavate and re-excavate 680 kilometres of canals, irrigation canals and drainage channels. A GIS-based national canal database will also be developed under a separate project to identify and classify canals across the country.
For flood protection, the government has set a target to construct, reconstruct and rehabilitate embankments and flood walls and improve river navigability over a total of 309 kilometres, while 484 kilometres of submerged shoals will be removed.
Additionally, 292 kilometres of embankment and flood wall works are currently underway under a 180-day flood protection programme.
He also highlighted impacts of upstream dams on the Teesta and Padma rivers, saying reduced water flow has affected agriculture, irrigation, fisheries and biodiversity in Bangladesh’s river basins.
In this context, the “Padma Barrage (Phase-I)” project has been approved by the Executive Committee of the National Economic Council (ECNEC).
The project, to be implemented from July 2026 to June 2033, includes construction of a 2.1-kilometre main barrage and a hydropower plant at Pangsha in Rajbari.
Once completed, the project is expected to enable storage of 2,900 million cubic metres of water, prevent salinity intrusion in the Padma basin including the Sundarbans, support irrigation for 2.88 million hectares of land, and significantly boost agricultural and fish production.
The government is also moving ahead with the “Comprehensive Management and Restoration of the Teesta River Project,” commonly known as the Teesta Master Plan, aimed at improving livelihoods in northern Bangladesh.
9 days ago
REHAB warns duties on construction materials will drive up flat prices
The Real Estate and Housing Association of Bangladesh (REHAB) has warned that new taxes and duties on construction materials in the proposed 2026-27 national budget will push up construction costs and ultimately raise flat prices, hitting ordinary homebuyers hardest.
Reacting to the budget placed by Finance Minister Amir Khosru Mahmud Chowdhury in Parliament on Thursday afternoon, REHAB President Ali Afzal said the proposal fell well short of what the housing sector had expected.
"We are still reviewing the budget in detail, but what we have seen so far shows no meaningful policy support or incentives for the housing sector," he said.
"On the contrary, new taxes and duties on construction materials are likely to further increase construction costs. The imposition of a specific VAT on steel rods, in particular, will drive up costs and have a direct impact on flat prices and ordinary buyers," he said.
Afzal said REHAB had long been pressing for a reduction in flat and land registration costs, arguing that lower registration fees will stimulate real transactions, attract investment to the sector and ultimately boost government revenue, a demand that went unaddressed in this year's budget.
He underscored the sector's broader economic footprint, noting that housing is directly and indirectly linked to some 269 industries.
A slowdown in real estate, he warned, will not only hurt developers and buyers but also ripple across industries, including steel, cement, ceramics, electrical goods, furniture and transport, putting the livelihoods of hundreds of thousands of workers at risk.
"Revitalising the housing sector means revitalising the economy, generating employment and strengthening the foundation of sustainable growth," the REHAB president said, urging the government to give serious weight to their proposals in post-budget consultations.
For the sector's long-term health, he called for lower registration costs, housing-friendly tax policies, access to long-term low-interest financing and a stable investment climate.
REHAB said it views the budget's provision allowing voluntary disclosure of investment as a positive step, adding that the measure would be reviewed further.
9 days ago
Tk 40,000cr bank rescue fund set aside in proposed budget
In a major financial intervention, the government has earmarked Tk 40,000 crore in the proposed national budget for FY 2026-27 to bail out and stabilize the struggling banking sector.
The massive financial package comes as a desperate measure to salvage several weak and distressed commercial banks and Non-Bank financial Institutions (NBFIs) currently grappling with severe liquidity crunches, rising non-performing loans (NPLs), and eroded capital adequacy.
According to Ministry of Finance sources, the allocation will be utilized to inject fresh capital, stabilize liquidity frameworks, and restore public confidence in the financial system. Economists and sector experts view this as one of the largest state-backed banking rescue operations in the country’s history.
The decision arrives at a critical juncture for Bangladesh’s economy. Recent central bank evaluations have flagged multiple commercial banks—particularly state-owned entities and several state-connected private sector Islami banks—as heavily "vulnerable."
According to financial reports, gross non-performing loans (NPLs) across the banking sector have spiked significantly over the past couple of years, bringing the system-wide Capital Adequacy Ratio down to precariously low levels. This capital erosion has effectively crippled the lending capacity of weaker banks, forcing the government to step in with taxpayer-funded fiscal support.
While the exact operational modalities are still being finalized, the broad framework outlines a phased recapitalization plan. The funds are expected to be routed through Bangladesh Bank to provide targeted capital injections and emergency liquidity lines to commercial institutions categorized under the "weak bank" list.
"The fundamental goal is to protect the interests of ordinary depositors and prevent a systemic collapse of the financial sector," said in the budget speech.
"However, this cash injection will be tied to strict conditionalities, including institutional restructuring and aggressive loan recovery targets,” according to the budget document.
9 days ago
Govt set to unveil Tk 9.38 lakh crore national budget Thursday
The new government is all set to place its first national budget with a financial outlay of Tk 9.38 lakh crore for the fiscal year 2026-27 in Parliament on Thursday, mapping out a strategy targeted at stabilisation and fiscal reform.
Finance Minister Amir Khosru Mahmud Chowdhury will present the proposed budget in the House at 3:00pm.
According to high-level treasury sources, the government has set an ambitious overall revenue mobilisation target of Tk 6.95 lakh crore to fund the massive public expenditure.
Out of the total revenue target, the National Board of Revenue (NBR) has been given the task of collecting Tk 6.04 lakh crore. Additionally, Tk 25,000 crore is expected to come from non-NBR tax sectors, while non-tax revenue (NTR) sources are projected to yield Tk 66,000 crore.
A major portion of the resource allocation will be consumed by debt servicing obligations.
The government has earmarked Tk 1.27 lakh crore solely for interest payments on loans. Of the amount, Tk 1.05 lakh crore will go towards servicing domestic debt, while foreign loan interest payments will require Tk 22,500 crore.
The draft proposal estimates the overall budget deficit at Tk 2.43 lakh crore. To bridge this significant fiscal deficit, the government plans to borrow Tk 1.09 lakh crore from foreign funding sources.
For domestic deficit financing, the administration will heavily rely on the country’s banking system, planning to borrow Tk 1.12 lakh crore from commercial banks.
The remaining gap of Tk 15,000 crore is projected to be met through the sales of national savings certificates.
Macroeconomic analysts indicate that the primary challenge for the new government will be controlling inflationary pressures and ensuring efficient revenue collection without disrupting industrial growth, as the country navigates a complex economic transition.
10 days ago
Bulk of social assistance to be distributed through digital cash transfer under FY26 budget
The government has allocated 40.05 percent of total social assistance to be distributed through digital cash transfers in the proposed national budget for FY 2025-26, aiming to enhance transparency and efficiency in the sector.
Social assistance remains the largest functional category within the broader social security framework, according to the budget papers.
The government, according to a budget document, has made significant progress in modernising this segment through digital means, reflecting its commitment to poverty alleviation and human rights.
According to the proposed budget, direct Government-to-Person (G2P) payments now account for 40.05 percent of all social protection interventions, up from 35.70 percent in FY 2023-24 and 34.48 percent in the ongoing FY 2024-25. Of the 30 cash-based programmes under social protection, 29 are currently covered by G2P systems.
In total, Tk 47,597 crore has been allocated to 36 different programmes under social assistance, which constitutes 40.78 percent of the total social security budget of Tk 1,16,731 crore for FY 2025-26.
Social security programmes get bigger allocations in national budget for FY26
The transition to digitised cash transfers—utilising Mobile Financial Services (MFS), Electronic Fund Transfers (EFT), and the National Payment Switch Bangladesh (NPSB)—has improved service delivery, minimized leakages, and reduced administrative costs.
These reforms align with the National Social Security Strategy (NSSS), which advocates for robust delivery systems and better targeting.
Digital initiatives such as the Dynamic Social Registry, part of the Social Protection Digital Transformation Project, are also supporting this transformation.
The expansion of one-off cash grants and stipends further reflects Bangladesh’s efforts to build a responsive and adaptive social protection system. In FY 2025-26, one-off cash grants are set to increase to 19.24 percent from 17.96 percent in the current fiscal, while stipends will slightly decline to 10.64 percent from 11.92 percent.
These cash-based programmes provide recipients with greater flexibility and dignity, allowing them to meet urgent needs such as healthcare, education, and nutrition.
Although food assistance continues to play a critical role—rising to 11.01 percent of social assistance in FY 2025-26 from 6.40 percent in the current fiscal—the government’s gradual shift to cash transfers aligns with global best practices and the NSSS direction to phase out costly in-kind support.
Meanwhile, the budget reflects a reduced emphasis on public workfare programmes, with allocations falling to 6.85 percent from 18.46 percent. This shift signals a focus on direct income support for vulnerable populations, including women, the elderly, and persons with disabilities.
Bangladesh’s investments in digital infrastructure, fintech innovation, and partnerships with financial institutions are positioning the country as a regional leader in inclusive, technology-driven social protection.
ICAB welcomes budget, but suggests lowering tax on online trading
The continued growth of digital cash-based assistance highlights the government’s resolve to promote financial inclusion, empower women economically, and foster sustainable development.
On June 2, Finance Adviser Salehuddin Ahmed placed a Taka 7,90,000 crore national budget for the fiscal year 2025–26, which is 12.7 percent of the GDP, through a pre-recorded televised video.
This is the country's 54th budget and the first of Professor Dr Muhammad Yunus-led interim government.
Out of the total budget size, the operating cost and other expenditure have been estimated at Taka 5,60,000 crore while the Annual Development Programme (ADP) has been estimated at Taka 2,30,000 crore.
1 year ago
Social security programmes get bigger allocations in national budget for FY26
The government has allocated Tk 1,16,731 crore for social security programmes in the proposed national budget for the fiscal year 2025-26, marking a significant increase and reaffirming its commitment to poverty alleviation and human rights.
This allocation represents a 3.27-fold increase from the Tk 35,975 crore earmarked in FY 2015-16, and now accounts for 14.78 percent of the total national budget and 1.87 percent of GDP.
According to the budget document, the government views social protection not only as a vital development priority but also as a tool for addressing poverty and vulnerability across the country.
The social security allocation is distributed among 95 programmes, a sharp reduction from 140 in the previous fiscal year, due to efforts to streamline and consolidate initiatives for better efficiency.
Among the various components, social assistance comprises the largest share—40.78 percent—spanning 36 different programmes accumulated Tk 47,597 crore.
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This is followed by: Social Insurance programmes of Tk 35,434 crore and three General Subsidies programmes with Tk 24,965 crore, with the 19 Labor Market Programmes of Tk 4171 crore, 15 social care service programmes with Tk 2327 crore, 17 Community Development programmes with Tk 2013 crore and three Technical Assistance programmes with Tk 223 crore.
The budget document highlights that the increased allocation and restructuring reflect the government’s strategic shift toward a more integrated and policy-aligned social protection system.
This year, the Finance Division has introduced key reforms, including the use of a unified Operational Code system under the Integrated Budget and Accounting System (iBAS++), enabling better expenditure tracking and reporting. For instance, previously fragmented programmes such as those for the welfare of Hijra, Bede, disadvantaged communities, and tea labourers—once spread across four Operational Codes—have now been merged into a single code.
These reforms align with the recommendations of the National Social Security Strategy (NSSS), which calls for concentrating resources on a smaller number of priority schemes that address lifecycle risks more effectively.
To further improve transparency and coordination, each ministry and division has been tasked with identifying and classifying their social security programmes using seven functional and nine lifecycle categories. Programmes are now categorized based on the type of intervention—cash, kind, food, or others.
The comprehensive classification exercise is expected to enhance consistency, allow more accurate monitoring, and ensure policy coherence across ministries. It also distinguishes between core social security interventions and broader development projects, facilitating better planning and resource allocation.
The government believes this consolidated approach will enable a more robust and responsive social protection system capable of delivering benefits more efficiently to those most in need.
1 year ago
Finance Adviser starts unveiling national budget
Finance Adviser Dr. Salehuddin Ahmed has started unveiling the national budget for the 2025–26 fiscal years.
The pre-recorded budget speech is being aired on Bangladesh Television (BTV) and Bangladesh Betar.
In a move to ensure wider dissemination, private television channels and radio stations are relaying the speech simultaneously by taking the feed from BTV.
Earlier, the Council of Advisers approved the revised the national budget for 2024-25, the proposed national budget for the fiscal year 2025-26 and the Finance Bill 2025-2026.
Council of Advisers approves revised and proposed budgets
Chief Adviser Professor Muhammad Yunus chaired the special meeting held at the Chief Adviser’s Office.
1 year ago
All eyes on Yunus-led interim govt as national budget set to unfold today
As the clock ticks towards budget time, all eyes are on the interim government led by Nobel Laureate Professor Muhammad Yunus, which is poised to unveil the national budget for the fiscal year 2025–26 today (Monday).
Dr Salehuddin Ahmed, the Adviser for Finance in the interim government, will unveil the proposed national budget for the 2025–26 fiscal year at 3 pm today (Monday).
The pre-recorded budget speech will be broadcast from 3:00pm via Bangladesh Television (BTV) and Bangladesh Betar.
In a move to ensure wider dissemination, private television channels and radio stations have been requested to relay the speech simultaneously by taking the feed from BTV.
While the nation struggles with persistent inflation and mounting pressure on household incomes, insiders suggest that the upcoming budget will offer little in the way of sweeping reforms. Core tax policies are expected to remain largely intact, signalling a cautious approach by the caretaker administration.
Live presentation of budget for FY26 advanced by an hour to 3pm: Finance Ministry
Despite mounting calls from economists and businesses alike for bold interventions to curb inflation and stimulate growth, sources close to the budget process indicate that the interim government will favour continuity over change.
The focus, it seems, will be on maintaining macroeconomic stability rather than introducing ambitious fiscal measures.
This marks the first national budget to be placed under Professor Yunus' stewardship, and expectations are high, especially given his global reputation as a pioneer in poverty alleviation and social business. Yet, with limited political mandate and time, the government is expected to prioritise administrative efficiency over structural reform.
The tax-free income threshold for individual taxpayers is likely to remain at Tk 350,000 per year.
There will be no increase in this limit, despite calls from economists and policy experts who argue that rising inflation necessitates a higher threshold to relieve financial pressure on low- and middle-income earners.
Business taxes are likely to see upward adjustments. Non-listed companies in the stock market may face a 2.5% increase in the corporate tax rate, taking it to 27.5%. Companies with an annual turnover above Tk 30 million currently pay a minimum tax of 0.6% of total sales, regardless of profit or loss. This rate may be raised to 1%, as per the sources confirmed.
Merchant banks might benefit from a reduced corporate tax rate—down from 37.5% to 27.5%. For listed companies, the existing 20% tax rate will remain unchanged.
Some targeted tax concessions may be introduced. These include:
Minimum tax relief: To encourage new taxpayers, the minimum tax—currently between Tk 3,000 and Tk 5,000 depending on location—may be reduced to as low as Tk 1,000.
Land transactions: Taxes on land purchases may be lowered, with rates potentially reduced to 6%, 4%, and 3%, down from 8%, 6%, and 4% respectively based on location.
Income tax return requirements: The number of services requiring proof of return submission may be reduced from 45, with some sectors like savings certificates no longer requiring returns, though credit card applications will still need them.
Family donations: Tax exemptions for monetary gifts may now extend to include siblings, along with spouses, parents, and children.
Private sector employees may receive higher tax-exempt allowances. Currently, up to Tk 450,000 can be exempted due to various benefits; this may be increased to Tk 500,000.
Employers might be allowed to declare up to Tk 20 lakh in perks and financial benefits (perquisites) to employees without facing additional compliance burdens, doubling the current ceiling of Tk 10 lakh. Incomes from the National Pension Authority and its universal pension schemes are expected to be tax-exempt.
The government may maintain the current policy allowing black money to be legalized through real estate investments, albeit at higher tax rates based on location. Buyers could be required to declare the source of funds.
There may also be an announcement regarding taxing and penalizing laundered money and assets, particularly those involving individuals who renounced their Bangladeshi citizenship but continue to earn income from the country.
Excise duty thresholds are expected to be revised. The current exemption for bank accounts holding less than Tk 100,000 may be increased to Tk 300,000. New layers for duty imposition are under consideration.
Bangladesh to unveil Tk 790,000cr national budget on June 2 amid economic challenges
Consumers may see higher prices on items like refrigerators, air conditioners, and mobile phones due to increases in VAT. Conversely, prices may drop for buses, microbuses, sugar, imported butter, soft drinks, specialty paper, and cricket bats due to adjustments in import duties.
However, products such as steel rods, face washes, lipsticks, and chocolates may become more expensive as a result of duty hikes.
1 year ago
Bangladesh to unveil Tk 790,000cr national budget on June 2 amid economic challenges
The interim government is set to unveil a Tk 790,000 crore national budget for the 2025–26 fiscal year on June 2, a defining moment for Bangladesh as it navigates mounting economic pressures and charts a course for stability and growth.
This will be the first budget to be presented by the newly installed appointed administration, which faces the daunting task of curbing persistent inflation, reinvigorating private investment and strengthening social safety nets amid global and domestic uncertainties.
Finance Adviser Dr Salehuddin Ahmed will deliver the budget speech in a pre-recorded broadcast scheduled for 4 pm on Bangladesh Television (BTV) and Bangladesh Betar.
Private television channels and radio stations have been requested to air the speech simultaneously, using BTV’s official feed.
In contrast to previous years, the proposed budget is Tk 7000 crore lower than the current fiscal year’s allocation of Tk 797,000.
According to Finance Ministry officials, this reduction aligns with a strategy for fiscal consolidation, ensuring a more implementable and efficient financial plan.
The projected budget deficit stands at Tk 226,000 crore, down from Tk 256,000 crore in the current fiscal year, representing 3.62% of the GDP. To bridge this gap, the government will depend on foreign borrowing, bank loans, and savings certificates.
An ambitious GDP growth target of 5.5% has been set for FY26, slightly higher than the revised 5.25% for the current year. But, international financial institutions, including the World Bank, IMF and ADB, predict growth will remain below 5%.
Inflation control remains a priority, with the government aiming to bring it down to 7%. However, economists warn that persistent inflationary pressures could pose risks to achieving this target.
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To alleviate the financial strain on lower-income groups, the budget includes an expansion of social safety net programs, increasing both beneficiary numbers and allowance amounts.
Key sectors prioritised for funding include agriculture, health, education and technology.
The Annual Development Programme (ADP) allocation is projected at Tk 230,000 crore, a reduction from Tk 265,000 crore in the current fiscal year, signifying a more focused investment approach.
Dr Salehuddin Ahmed has assured that the upcoming budget will be business-friendly, introducing tax policies designed to enhance investment, GDP growth and job creation.
The revenue collection target for FY26 is set at Tk 518,000 crore, up from Tk 480,000 crore in the current fiscal year. But, the IMF has recommended a more aggressive target of Tk 580,000 under its reform agenda.
Non-development expenditures will rise, with major allocations earmarked for debt servicing, food subsidies, and banking sector reforms.
The non-development budget is expected to reach Tk 560,000 crore, an increase of Tk 28,000 crore compared to the current fiscal year’s allocation.
The government also plans to strengthen the banking sector with a dedicated allocation to cover the capital shortfall of state-owned banks. Besides, subsidies for agriculture, fertilizers, and electricity will continue to support key industries.
As anticipation builds for the budget announcement, public sentiment is mixed—hopeful about stronger social safety nets and inflation control, yet wary of implementation challenges.
Finance Adviser to unveil budget on June 2
Economists caution that without structural reforms and effective execution, the budget’s ambitious goals may be difficult to achieve.
They advocate for enhanced wealth taxation and improved enforcement mechanisms to broaden direct taxation and minimize dependence on regressive indirect taxes.
The budget presentation by Finance Adviser Dr Salehuddin Ahmed will be closely scrutinised, as it is expected to shape Bangladesh’s economic recovery and growth in the post-uprising political transition era.
1 year ago