United News of Bangladesh

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.  

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. Budget 2025–26 market-friendly, say CPD, DSE and DBA   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.  

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.  

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.

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. Japan to provide $1.063 billion for budget support, railways 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.  

Nari Maitree, media professionals, and tobacco control experts on Monday called for price hikes and effective taxation on tobacco products in the upcoming national budget, to protect public health by reducing tobacco use. This demand was raised at a press conference titled "Demand for Effective Tax and Price Increase on Tobacco Products in the Upcoming Budget 2025-26 for Public Health Protection", held at the National Press Club. Speakers urge to increase budget allocation for water, sanitation sector The press conference was presided over by Shaheen Akter Dolly, Executive Director of Nari Maitree while Mir Masrur Zaman, Chief News Editor of Channel i, and speaker Dr. Shafiun Nahin Shimul, Professor of Health Economics at Dhaka University, were present. Representatives from the Youth Forum Against tobacco, Mothers’ Forum Against tobacco , Teachers’ Forum Against tobacco and students from various universities also attended the event. Speakers demanded that the lower and medium tiers of cigarettes be merged, setting the minimum retail price of a 10-stick cigarette pack at TK 90. They pointed out that due to the close price range between these two tiers, consumers tend to switch to cheaper options when prices rise, especially from medium to lower tiers. However, merging the two and increasing prices would discourage consumption, particularly among youth, potentially preventing around 900,000 premature tobacco-related deaths among young people in the long term. In the keynote speech, Hasan Shahriar, Head of the Tobacco Control Program at PROGGA, stated, “The current four-tier price structure of cigarettes (low, medium, high, and premium) hinders effective taxation and pricing strategies. Especially the minimal price difference between the low and medium tiers allows smokers to easily switch between them. If these tiers are merged and prices increased in the 2025-26 budget, it would discourage smoking among low-income groups and the younger generation.” He also outlined the proposed tax and price measures, including setting the retail price of a 10-stick cigarette pack at BDT 90 by merging the low and medium tiers, keeping the high-tier retail price unchanged at BDT 140, setting the premium-tier price at BDT 190 per 10 sticks, imposing a 67% supplementary duty, 15% VAT, and a 1% health development surcharge on the retail price of cigarettes. Additionally, the demand includes setting the retail price of a 25-stick non-filtered bidi pack at TK 25 and a 20-stick filtered bidi pack at TK 20, with a 45% supplementary duty. A 10-gram pack of jorda should retail at BDT 55, and a 10-gram pack of gul at BDT 30, each with a 60% supplementary duty. All tobacco products should continue to be subject to a 15% VAT and a 1% health development surcharge on their retail prices.  Retired customs and VAT officers urge govt to revise new revenue ordinance Nasrin Akter, Coordinator of the Tobacco Control Project at Nari Maitree, stated that reforming the existing tax system as per the recommendations in the upcoming budget could reduce cigarette use from 15.1% to 13.03%. It would encourage nearly 2.4 million adults to quit smoking and discourage around 1.7 million youths from starting. In the long run, it could prevent approximately 864,758 adult and 869,000 youth premature deaths. Moreover, it could generate around BDT 68,000 crore in revenue, an increase of BDT 20,000 crore compared to the previous year—representing a 43% rise.  

The parliament of Bangladesh on Sunday (June 30, 2024) passed the Tk 797,000 crore national budget for FY 2024-25 setting the goal of economic growth at 6.75 percent and keeping annual inflation at around 6 percent. Finance Minister Abul Hassan Mahmood Ali moved the Appropriations Bill 2024, seeking a budgetary allocation of Tk 12,41,752 crore which was passed by voice votes. Earlier on Saturday, the parliament passed the Finance Bill 2024 with some minor changes. Following the proposal mooted in the House by the Finance Ministry for the parliamentary approval of the appropriation of funds for meeting necessary development and non-development expenditures of the government, the ministers concerned placed justifications for the expenditure by their respective ministries through 59 demands for grants. Read more: Proposed budget has high hopes, and low direction to achieve goals: RAPID Earlier, the parliament rejected, by voice votes, a total of only 251 cut-motions that stood in the name of opposition members on 59 demands for grants for different ministries. A total of seven MPs, including from Jatiya Party Mujibul Huq, Hafiz Uddin Ahmed, and Independent MP Pankaj Nath, Md Hamidul Haque Khandker, Md. Abul Kalam, Md Suhrab Uddin and Md. Nasser Shahrear Zahedee placed the cut motions. They were, however, allowed to participate in the discussion on Law Ministry, Secondary and Higher Studies Division and Social Welfare Ministry. Later, Speaker Shirin Sharmin Chaudhury quickened the process of passing the demands for grants for different ministries without giving a lunch break. Opposition and independent MPs were present in the House when the Appropriation Bill was passed, and they did not raise objection to passing the bill. Read more: Finance Bill 2024, entailing budget for next fiscal, passed in Jatiya Sangshad

The Bangladesh Economic Association (BEA) has proposed a 70 percent tax on all types of cigarettes and tobacco in the next budget. The association reckons that doing so will reduce smoking by about 66 percent, alongside generating revenue of Tk1,700 crore for state coffers. The proposal was submitted to the National Board of Revenue (NBR) during the pre-budget discussion held at the NBR Building on Sunday (February 18). The General Secretary of the BEA Professor Dr. Md. Aynul Islam presented the budget proposal. Vice President of the association Professor Hannana Begum was present. Read more: Govt cut VAT, duty on import of 4 essential items ahead of Ramadan According to the BEA's proposal, imposing a single supplementary duty of 70 percent on all types of cigarettes would increase the price of cigarettes by an average of 130 percent. Smoking will be reduced by 66 percent. About 70 lakh smokers will quit smoking, and about 71 lakh young people will stop habituating to smoking. Also, the additional tax revenue of the government will be earned at least Tk1700 crores, the proposal stated. Similarly, the BEA demanded to impose a tax of 70 percent on all types of tobacco products including smokeless tobacco such as jorda, gul, sadapata, etc. On the other hand, in the case of bidi, if the tax is imposed at the rate of Tk 4.90 on the retail price of every 25 shalak (piece) packet, the government will be able to collect additional revenue of Tk 800 crore. Read more: ICMAB delegation takes part in pre-budget discussion with NBR The BEA thinks with such a tax increase; revenue earning will be raised and it would help to revive the economy from the ongoing economic crisis. The BEA has a total of 27 new sources of revenue income. At this time, Prof Aynul said, as a method of gathering resources for the upcoming budget, no pressure can be applied on the general population, such as the poor, lower class, lower middle class, and middle class. Due to various reasons, this class of people is now in a severe economic crisis. It would be unfair at this moment to rely completely on them as in the past for tax collection. In that case, the imposition of additional income tax on these three groups – the super-rich, the rich, and the upper-middle class – can be considered, said Prof Aynul. Read more: PROGGA, ATMA for imposing specific taxes on tobacco products

BNP Secretary General Mirza Fakhrul Islam Alamgir on Friday (June 2, 2023) termed the proposed national budget of Bangladesh for the next fiscal year (2023-24) unrealistic and said it will not help overcome a dire economic crisis the country is facing now. “The government is saying an excellent budget has been placed which would bring about change. Our controlled media are saying the budget can’t bring any relief to people.  They (govt) have completely failed to place a budget that can help get out of terrible economic crisis amid the growing price hikes in essentials,” he said. Speaking at a discussion, the BNP leader said it is a vague budget where there is no clear indication of how and from where the money will come and how the growth will be achieved. “That is why economists are saying the budget is devoid of reality.” Bangladesh Sammilito Peshajibi Parishad, a body of pro-BNP professionals, arranged the programme at the Jatiya Press Club, marking the 42nd death anniversary of BNP founder Ziaur Rahman. Read more: Budget not based on IMF conditions: Finance Minister Earlier on Thursday, Finance Minister AHM Mustafa Kamal presented a Tk7,61,785 crore proposed national budget for the 2023–24 fiscal year in the national parliament with 7.5 percent  GDP growth. Fakhrul said the government has widened the tax net to exploit the common people. “Even if you want to beg, you have to have a TIN number now...those who are exempted from income tax will also have to pay income tax of Tk2000.” He said the government is taking mega projects for plundering by cutting the pockets of the common people. The BNP leader said ordinary people are suffering seriously as they cannot afford daily necessities due to abnormal price hikes. Read more: CPD dismisses budget's projections on growth, inflation, revenue collection  He said the prices of rice, pulses, oil, salt, onion and ginger have already gone beyond the buying capacity of common people. The BNP leader said the current government can no longer be kept in power as it is ruining the future of the nation every day and every moment. “It (govt) is also destroying our potential and dignity. That's why we all need to be united.” Fakhrul said their party wants a free, fair and neutral election under a non-party caretaker government to restore people’s voting rights and democracy. “From past experiences, we can say the election will never be fair under Awami League without a neutral caretaker government, “he said. Read more: Budget 2023-24: Govt allocates Tk88,162 crore in education sector, up 8.2%  The BNP leader urged the government to quit power with dignity before time runs out fast.  “Enough is enough, please now go away without hurting the people, Resign by handing over power to a caretaker government. Otherwise, the country’s people know very well how to unset you,” he said pointing at the government of Bangladesh.

Bangladesh's Finance Minister AHM Mustafa Kamal has said that the national budget for the fiscal year (FY) 2023-24 was not based on the conditions of the International Monetary Fund (IMF). "Like in different countries, the IMF has come to Bangladesh and made some recommendations to help the economy. We took their prescriptions as per our needs, but did not follow them all in preparing the budget," he said while addressing a post-budget press conference at the Bangabandhu International Conference Centre (BICC) in the city on Friday (June 2, 2023). He said the IMF is not helping the countries only by providing money, they also monitor the economy. This is good for the economy. Responding to a repeated number of questions on inflation and commodity price hike, the finance minister said the government is concerned about the rising trend in inflation. Read more: Unrealistic budget won’t help overcome economic crisis: Fakhrul "We're apprehensive about inflation, but it is not beyond our control. We cannot stop feeding the people," he said. He said the government is approaching in a flexible way to contain inflation. Through social safety-net programmes, the government has been providing food to poor people. "We're trying to identify the reasons for inflation and address those. If we need to give any concession, we will do that," he said. Agriculture Minister Abdur Razzaque, LGRD Minister Tajul Islam, Education Minister Dipu Moni, Commerce Minister Tipu Munshi, Finance Secretary Fatima Yasmin, Bangladesh Bank Governor Abdur Rouf Talukder, and National Board of Revenue (NBR) Chairman Abu Hena Rahmatul Munim were among others also addressed on the occasion. Read more: CPD dismisses budget's projections on growth, inflation, revenue collection The Finance Minister claimed that the new budget was mainly focused on benefiting the poor people. "We have expanded our tax net so that more taxes could be collected. Everybody has to pay tax," he said, adding that like other budgets in the past this was also prepared targeting both the next election and the people. "We cannot separate the people or the election from our goal of the budget," he said. Responding to another question, he said that all the projections made in the previous budgets were implemented. Kamal said Bangladesh has been well placed in remittance earnings among the countries in the region. Read more: Budget 2023-24: Govt allocates Tk88,162 crore in education sector, up 8.2% After a downward trend, remittance earning is again increasing and we can meet five months of our import bill through our reserve. He said after some measures taken by the government, the inflow of remittance will gradually go up. At the press conference, with the request of the Finance Minister, Bangladesh Governor Abdur Rouf Talukder responded to a good number of questions, specially, on inflation, remittance and banking sector. He said that Bangladesh Bank will announce its monetary policy on June 19 where it will lay out the plan on containing inflation, and increasing remittance and reserve. He claimed that though the government's loan from the banking system is increasing, it will not push up inflation as the central bank is withdrawing more money from the market through selling dollars. Read more: Budget sets 7.5 percent annual economic growth, inflation at 6 percent