[🇧🇩] Budget for 2025- 2026

[Saif]

Prudent budget planning is essential

CPD’s emphasis on macroeconomic stability amid LDC graduation concerns

www.thedailystar.net

Prudent budget planning is essential
CPD’s emphasis on macroeconomic stability amid LDC graduation concerns

VISUAL: STAR

In a number of pre-budget discussions in the capital on Sunday, economists rightly stressed the need for designing the national budget for the upcoming fiscal year in a way that prioritises macroeconomic stability. They also emphasised the need for tax policy revision and tariff reforms in line with the World Trade Organization (WTO) regulations to aid in Bangladesh's preparation for graduating from the Least Developed Country (LDC) bracket in November 2026. Given the the country's ongoing economic challenges, we believe these recommendations are timely and should be considered.

In its discussions, the Centre for Policy Dialogue (CPD) said targeted interventions are required to address the economic challenges, and these should be incorporated into the new budget to ensure fiscal prudence—maximising the use of our scarce resources. At the same time, as Bangladesh transitions into a developing economy, it must phase out direct export incentives to meet WTO standards and employ alternative WTO-compliant measures. Revision of agricultural trade policies, elimination of minimum import prices on certain goods, and adjustment of tariff structures to keep custom duties aligned with the bound tariff commitments that Bangladesh made under the WTO agreements are also necessary for maintaining compliance in the post-LDC graduation scenario. Ensuring WTO compliance is of utmost importance as Bangladesh is set to lose the perks and waivers that come with the LDC status. CPD also advised the government to plan for legal counselling, in-depth trade policy analysis, and proper dispute resolution mechanisms—steps essential for securing a favourable position in trade relations with other nations.

Targeted interventions are required to address the economic challenges, and these should be incorporated into the new budget to ensure fiscal prudence—maximising the use of our scarce resources. At the same time, as Bangladesh transitions into a developing economy, it must phase out direct export incentives to meet WTO standards and employ alternative WTO-compliant measures. Revision of agricultural trade policies, elimination of minimum import prices on certain goods, and adjustment of tariff structures to keep custom duties aligned with the bound tariff commitments that Bangladesh made under the WTO agreements are also necessary for maintaining compliance in the post-LDC graduation scenario.

Meanwhile, at another discussion with the government, the CPD chief suggested formulating strict legislation to prevent tax evasion, track wealthy tax dodgers, and increase revenue through direct taxation. Bangladesh has long had one of the lowest tax-GDP ratios in the world. It's high time this was corrected, and to do so, the authorities must ensure that all eligible taxpayers, including influential individuals, are held accountable. Moreover, the recent increase in VAT and supplementary duties should be reconsidered—something that we have also stressed for quite some time—as raising revenue through indirect taxes is placing undue burdens on ordinary and poor citizens already struggling with high inflation.

These are all recommendations worth serious consideration. As the next fiscal year is going to be a crucial one amid all the uncertainties caused by the July uprising, the national budget must reflect prudent and strategic thinking on the government's part. Long-term policies to address persistent and potential setbacks should be integrated into budget preparations to ensure Bangladesh is adequately prepared for the challenges that lie ahead.​

 

[Saif]

Next budget to focus on curbing inflation

Finance Adviser Salehuddin Ahmed yesterday said the interim government will not incorporate any mega projects that cost billions of dollars in the next budget for FY2025-26.

www.thedailystar.net

Next budget to focus on curbing inflation
Finance adviser tells senor journos

Finance Adviser Salehuddin Ahmed yesterday said the interim government will not incorporate any mega projects that cost billions of dollars in the next budget for FY2025-26.

"We will not undertake monumental projects costing $10-$12 billion in the upcoming budget. Instead, we will take projects that create employment."

He made the remarks during a pre-budget meeting with editors and senior journalists from print, online, and electronic media held at his office at the Secretariat in the capital.

He said the next budget will be realistic and people-centric.

"We will not formulate a budget that an elected government would throw away," said the finance adviser, adding that the upcoming budget will mainly focus on controlling inflation, not driving economic growth.

Finance Secretary Khairuzzaman Mozumder expressed optimism that inflation could be brought down to 8 percent by June this year.

During the meeting, editors suggested several measures, including steps to control inflation, expanding the social safety net programmes, raising the tax-free income limit to at least Tk 5 lakh, and increasing allocations for health and education sectors.

The editors and senior journalists also mentioned various challenges faced by the media, including high taxes levied on the newspaper industry.

In response, the finance adviser assured them that challenges faced by newspapers, television, and online platforms would be taken into consideration in the budget.

The finance adviser emphasised that allowances under social safety net programmes would be increased, but the extent would depend on the availability of resources.

Financial Express Editor Shamsul Haque Zahid suggested that the interim government, which will present the budget in June, should formulate a budget that the next government can implement, especially considering the possibility of elections later this year.

He also recommended a realistic approach to budgeting given low revenue earnings.

Abdul Hai Shikdar, editor of Daily Jugantor, proposed increasing the tax-free income threshold above Tk 4 lakh.

Zakir Hossain, associate editor of Daily Samakal, said that the newspaper industry faces a total import tax of 31 percent on newsprint, and despite repeated requests over the years, no steps have been taken to reduce it.

He further said allowances in the government's social security programmes are very low, suggesting increasing the allowances to at least Tk 3,000 per month.

Shawkat Hossain, online editor at the daily Prothom Alo, emphasised that job creation should be a major focus of this budget.

He also suggested shortening the budget speech.

In response, the finance adviser agreed to reduce its length to 50-60 pages.

Mizanur Rahman, head of operations at The Daily Star, stressed the need to incorporate automation into the operations of the National Board of Revenue in the next budget to enhance its efficiency.

Mostafa Kamal, editor of Daily Khaborer Kagoj, and Syed Shahnewaz Karim, acting editor of Daily Shomoyer Alo, also spoke at the meeting.​

 

[Saif]

Next national budget will be business-friendly: Adviser Salehuddin

Finance Adviser Salehuddin Ahmed on Thursday assured that the upcoming national budget will be business-friendly, incorporating a favourable tax policy to boost investment, GDP growth, and employment generation. “We will present a business-friendly budget with a favourable tax policy to enha

thefinancialexpress.com.bd

Next national budget will be business-friendly: Adviser Salehuddin
FE Online Desk
Published :
Mar 20, 2025 19:38
Updated :
Mar 20, 2025 19:38

Finance Adviser Salehuddin Ahmed on Thursday assured that the upcoming national budget will be business-friendly, incorporating a favourable tax policy to boost investment, GDP growth, and employment generation.

“We will present a business-friendly budget with a favourable tax policy to enhance overall investment, GDP, and employment. The business community has provided us with a set of practical suggestions,” he told reporters after a pre-budget meeting with business leaders at the Finance Division Conference Room at the Bangladesh Secretariat, UNB reports.

Salehuddin said the business community has urged the government to lower tax rates across various sectors and streamline tax payments through online platforms.

Regarding customs procedures, he noted that the government would consider the business community’s suggestions concerning the Harmonized System (HS) code.

Bangladesh Chamber of Industries (BCI) President Anwar-Ul-Alam Chowdhury said the discussion mainly focused on National Board of Revenue (NBR)-related issues, particularly income tax.

“The finance adviser appeared positive, emphasising that the NBR should strengthen efforts in revenue mobilization and tax collection. However, our primary concern remains enhancing industrial competitiveness,” he said.

Chowdhury added that the finance adviser requested written proposals regarding banking sector issues and fiscal support.

Leaders from the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), and Bangladesh Textile Mills Association (BTMA) also placed their suggestions during the meeting.

BCI President Anwar-Ul-Alam Chowdhury stressed the importance of aligning tax assessment with international practices, to which the Finance Adviser agreed.

BKMEA President Mohammad Hatem expressed optimism that the meeting would lead to positive changes in the taxation system, as assured by the NBR Chairman.

“We requested a revision of the provision requiring a 1 per cent Advance Income Tax. Tax should be paid on profit, but currently, tax is deducted at source on total sales,” Hatem said.

While the business leaders did not propose changes to corporate tax rates, they advocated for reducing VAT in specific sectors. They also recommended standardizing the HS code to six digits for efficient customs clearance under the bond management system.

Hatem noted that the business community appreciated improvements in services at Chattogram Customs House. He urged the government to simplify VAT regulations and HS code complexities.

Additionally, the BKMEA requested direct cash incentives on export proceeds to avoid procedural complications.

In a formal proposal, the BKMEA suggested maintaining the source tax for the Ready-Made Garment (RMG) sector at 0.5 per cent for the next five fiscal years (until FY30), treating it as the final tax realization.

They also demanded a business-friendly taxation policy, necessary reforms, and full VAT exemption on products and services related to 100 per cent export-oriented RMG industries.​

 

[Saif]

Next budget likely Tk 7.92t with doable Targets

Bangladesh's upcoming budget may be Tk 7.92 trillion in size, smaller than the current one, as the interim government walks a tightrope amid a subdued trend in revenue earnings and foreign-aid inflow in the present context. Officials give the possible budgeting outlook, saying that this is for the

thefinancialexpress.com.bd

Taming inflation to 6.5pc pivotal promise
Next budget likely Tk 7.92t with doable Targets
ADP Tk 2.3t, GDP growth target modest 5.5pc

Syful Islam
Published :
Apr 11, 2025 23:50
Updated :
Apr 11, 2025 23:50

Bangladesh's upcoming budget may be Tk 7.92 trillion in size, smaller than the current one, as the interim government walks a tightrope amid a subdued trend in revenue earnings and foreign-aid inflow in the present context.

Officials give the possible budgeting outlook, saying that this is for the first time Bangladesh is framing a smaller budget compared to the previous one, as the government also takes into consideration slower implementation of the current budget.

A technical committee meeting on budgeting at the ministry of finance made the decision Wednesday. The committee for coordination on fiscal, monetary, and currency exchange, headed by finance adviser Dr Saleh Uddin Ahmed, will take the final decision on the budget for the fiscal year 2025-26.

The national budget for the outgoing financial year, 2024-25, is worth a total of Tk 7.97 trillion. Its size was revised down by Tk 490 billion with cuts from the original annual development programme (ADP) of Tk 2.65 trillion. Finance Ministry sources have said the National Board of Revenue may be given a daunting task of collecting Tk 5.10 trillion in the next fiscal year, up from Tk 4.80 trillion in the current year.

The ADP outlay may be fixed at Tk 2.30 trillion for the next fiscal year, according to officials concerned.

The government may set GDP (gross domestic product) growth target at 5.5 per cent in the next fiscal year, compared to 6.75 per cent in the outgoing fiscal year.

Officials say in the next budget the government may set a target of bringing down the rate of inflation to 6.5 per cent, similar to the current budgetary target. In the current fiscal year until March, inflation remained defiant of the target to hover between 11.66 per cent and 9.32 per cent.

Also, the government plans to keep budget deficit below 4.0 per cent against 4.6% of the GDP in the current fiscal year, according to officials concerned.

Finance officials say the major target to be laid in the next fiscal budget will be lessening inflation and enhancing budget implementation.

They say against the budgetary target of Tk 4.80 trillion, the National Board of Revenue until this February, could generate Tk 2.21 trillion. At the end of the fiscal year, they predict, the NBR "may end up collecting Tk 4.0 trillion at best, which is significantly lower than the revised target of Tk 4.635 trillion".

The ADP implementation until February was below 25 per cent-the lowest tally in 14 years-as official data showed.

As such, they say, funding a big budget in the next fiscal year will be difficult and such a big budget will remain largely unimplemented.

Dr Fahmida Khatun, executive director at the Centre for Policy Dialogue (CPD), finds a few reasons for having a small budget for the upcoming fiscal year.

First one is Bangladesh has been grappling with persistently low tax revenues. The tax-to-GDP ratio remains among the lowest globally, limiting government's fiscal capacity, she mentions.

Ms Khatun notes that as part of the $4.7-billion loan programme with the International Monetary Fund (IMF), Bangladesh is required to implement several fiscal reforms. These include reducing the budget size, enhancing tax collection, adopting market-based exchange rate, and narrowing budget deficit.

In the second place is the government aim to bring inflation down to about 6-7 per cent in FY 2025-26. To achieve the target, the government needs to implement cost-saving measures in public spending alongside pursuing a contractionary monetary policy, she notes.

"While the decision to downsize the national budget aligns with efforts to stabilise the economy and meeting international obligations, it poses challenges such as lowering public spending which could affect employment generation," says the CPD executive director.

She feels that it's a must-do for the government to mitigate the adverse effects. "It must prioritise efficient resource allocation, protect essential social programmes for the poor, and implement reforms to enhance revenue collection."​

 

[Saif]

FY26 budget: Govt to cut spending

The interim government is going to bring about major changes in the national budget by squeezing expenditure for the forthcoming financial year of 2025-26 because of resource crunches, said officials.

www.newagebd.net

FY26 budget: Govt to cut spending
Shakhawat Hossain 15 April, 2025, 23:15

The interim government is going to bring about major changes in the national budget by squeezing expenditure for the forthcoming financial year of 2025-26 because of resource crunches, said officials.

It may announce a downsized outlay of Tk 7.9 lakh crore to reduce dependency on borrowing to meet budget deficit.

Before ousting from power in the face of a mass uprising on August 5, 2024, the Awami League government had announced a Tk 7.97 lakh crore budget for FY25.

However, in March 2025, the interim government revised down the overall layout to Tk 7.4 lakh crore after a cut in the annual development programme by Tk 49,000 crore to Tk 2.16 lakh crore from initial Tk 2.65 lakh crore.

A trimmed ADP of Tk 2.3 lakh crore is likely to be taken for FY26, dropping unnecessary and politically motivated projects, said the officials, referring to the decisions made at an online meeting of the coordination council on macro-economy and resource management on Tuesday.

Education, health and social safety net programme are likely to be major thrust areas with a view to presenting a realistic budget, added the officials.

Presided over by finance adviser Salehuddin Ahmed, the meeting decided to keep the budget size as well as its deficit at a tolerable level.

Officials attending the meeting said the latest projections about the forthcoming national budget were varied significantly from the ones made in the previous coordination council meeting in December 2024.

The interim government had planned to announce an expansionary budget of Tk 8.48 lakh crore with a gross domestic product growth rate at 6 per cent.

But Tuesday’s meeting, which was attended, among others, by planning adviser Wahiduddin Mahmud and commerce adviser Sk Bashir Uddin, decided to project the GDP growth rate at 5.5 per cent, said the officials.

Inflation which has been hovering at 9 per cent is likely to be projected at 6.5 per cent, added the officials.

The officials observed that considering the overall high inflation in FY25, the next budget would not be expansionary in real term.

The ousted Awami League regime in its last budget of the 15-year rule aimed at achieving 6.75 per cent GDP growth and keeping inflation at 6 per cent.

Citing the 90-day pause on United States-imposed reciprocal tariffs, Tuesday’s meeting had a little discussion over the tariffs and their impacts on the country’s overall exports.

The finance adviser is expected to announce the national budget for FY26 on June 5 in a televised programme in the absence of a parliament.

He has already stated on a number of occasions that the new budget would be a realistic one, leaving footprints for an elected government to follow.​

 

[Saif]

Interim govt to announce budget 2 June

Breaking with tradition, the interim government has decided to announce the national budget on 2 June. This decision was made during a meeting of the Coordination Council on Financial, Monetary and Exchange Rate Affairs and the Asset Management Committee held at the Secretariat on Tuesday.

en.prothomalo.com

Interim govt to announce budget 2 June
Special Correspondent Dhaka
Published: 16 Apr 2025, 16: 15

Finance adviser Salehuddin Ahmed. File photo

Breaking with tradition, the interim government has decided to announce the national budget on 2 June.

This decision was made during a meeting of the Coordination Council on Financial, Monetary and Exchange Rate Affairs and the Asset Management Committee held at the Secretariat on Tuesday.

The meeting was chaired by the finance adviser, Salehuddin Ahmed, according to sources present at the meeting.

This will be the budget of the interim government led by Professor Muhammad Yunus.

Traditionally, the budget of Bangladesh is presented in parliament on a Thursday in June each fiscal year. But the budget for the 2025-26 fiscal year is scheduled to be announced on Monday.

It is anticipated that the proposed budget will amount to Tk 7.9 trillion (790,000 crore).

The budget will be announced before the Eid-ul-Azha holidays. The holidays are expected to start from the second week of June.

In keeping with tradition, the finance adviser will hold a post-budget press conference the following day, as confirmed by sources within the Ministry of Finance.

The original budget for the current (2024-25) fiscal year stood at Tk 7.97 trillion. Accordingly, the upcoming budget may be approximately BDT 70 billion (7,000 crore) lower than that of the current fiscal year.

As there is no national parliament, finance adviser Salehuddin Ahmed will present the upcoming budget via a televised broadcast.

The budget will be declared through a Presidential Ordinance.

In accordance with customary procedure, finance ministers of political governments present the budget in parliament; however, given the absence of a political administration, this will not take place this year.​

 

[Saif]

FY26 BUDGET: Task force’s advice, safety net, inflation in focus

The national budget for the 2025-26 financial year will accommodate major recommendations made by a task force on economy to tame inflation and expand the social safety net by bringing about major changes in the public spending and...

www.newagebd.net

FY26 BUDGET: Task force’s advice, safety net, inflation in focus
Shakhawat Hossain 24 April, 2025, 23:29

The national budget for the 2025-26 financial year will accommodate major recommendations made by a task force on economy to tame inflation and expand the social safety net by bringing about major changes in the public spending and resource mobilisation, said finance ministry officials.

The interim government formed the task force as part of its efforts to bring the country’s economy back on track after the autocratic Awami League regime, which was ousted in a mass uprising on August 5 past year, sent the economy into tailspin, they said.

The task force on January 30 submitted its report titled ‘Re-strategising the economy and mobilising resources for equitable and sustainable development’ with a host of recommendations on the national budget which suffered immensely due to corruption, inefficiency and wastage of resources during the Awami League regime.

The finance ministry officials said that directives had already been given to all ministries and divisions through a circular to follow the basic principles and task force’s recommendations to set up the projections on resource mobilisation and expenditure.

The other principles include poverty reduction, human resource development, mitigating the climate change, maximum uses of resources and keeping balance between the growth in gross domestic product and the overall budget outlay, they said.

Centre for Policy Dialogue executive director Fahmida Khatun termed the Finance Division’s moves positive against the backdrop of the shortage of resources because of a chronic revenue shortfall.

Things are moving towards right directions, said the CPD executive director, also a member of the task force, referring to recent reports that the interim government is likely to announce a downsized outlay of Tk 7.9 lakh crore for the FY26 to reduce dependency on borrowing to meet budget deficit.

The AL regime in its last budget had announced a Tk 7.97 lakh crore budget for FY25, but the interim government revised down it to Tk 7.4 lakh crore, slashing the annual development programme to Tk 2.16 lakh crore from initial Tk 2.65 lakh crore.

One of the major recommendations of the task force led by former Bangladesh Institute of Development Studies director general KAS Murshid was the maintaining of fiscal discipline.

‘The fiscal policy must be aligned with the monetary policy to manage expectations about inflation. If the government runs large fiscal deficits and borrows excessively, the situation can lead to higher inflation expectations, as people fear that an excessive money supply growth will drive up prices,’ according to the report by the task force.

Former World Bank Dhaka office chief economist Zahid Hussain termed the task force recommendation correct since the expansionary fiscal measures by the immediate past political regime made the contractionary monetary policy ineffective.

High inflation has become entrenched in recent years, he said.

The annual average inflation is expected to accelerate to 10.2 per cent in FY25, from 9.7 per cent in FY24 and 9 per cent in FY23, said the Asian Development Bank in its recent outlook regarding Bangladesh.

To offset inflationary pressure on majority of the people, the task force recommended prioritising poverty reduction-focused programmes such as old-age allowances, disability benefits, mother and child benefit schemes, and food security interventions targeting poor and vulnerable groups.

Terming the social protection allocations inflated because of the presence of pension for retired government employees and their families, savings certificate interest assistance and procurement of equipment for search, rescue operation and emergency communication for earthquake and other disasters among the list of 24 in the funds, the task force called for maintaining international standard to operate social security programme.

The Finance Division set side 2.5 per cent of the GDP and 17 per cent of the national budget on social protection spending in the national budget for FY25.

However, when the programmes under the list are excluded, the allocation drops to only 1.2 per cent of the GDP and 7 per cent of the budget, said the report.

The World Social Protection Report 2024–26, published by the International Labour Organisation estimated that Bangladesh spent just 0.9 per cent of its GDP on social protection, which is markedly below the South Asian regional average of 3.8 per cent as well as the averages of 4.2 per cent and 8.5 per cent for lower-middle-income and upper-middle-income countries respectively.

The task force focused on the annual development programme, saying that the policy priority for the government would be to set its size at a manageable level and seriously address the capacity constraints and inter-agency and aid coordination problems.

It also suggested the separation of tax policy and operational services of the National Board of Revenue, automation of the collection system of taxes and levies, abolishing zoning system and capacity building of the NBR among the resource mobilising steps.

The country’s tax revenue as a percentage of the GDP has been declining, hitting 8.6 per cent in 2022-23, the lowest in South Asia. The low tax-GDP base has been concerning as the resource shortfall prevented the successive governments from higher spending on important sectors like education, health and social safety net.

The introduction of bonds in the future has also been suggested by the task force to meet the financing with the country’s graduation from the least developed countries’ bloc in 2026.

Fahmida said that some of the recommendations should be implemented on the short-term basis while the others on the mid- and long-term basis.​

 

[Saif]

We will focus on revenue generating initiatives in next budget: NBR chairman

National Board of Revenue (NBR) Chairman Md Abdur Rahman has hinted at tough fiscal measures in the upcoming budget aimed at boosting revenue collection. While addressing a seminar in Dhaka on Tuesday, the NBR chairman said both the chief adviser and finance adviser had instructed the formulation

thefinancialexpress.com.bd

We will focus on revenue generating initiatives in next budget: NBR chairman
FE ONLINE DESK
Published :
Apr 29, 2025 21:22
Updated :
Apr 29, 2025 21:22

National Board of Revenue (NBR) Chairman Md Abdur Rahman has hinted at tough fiscal measures in the upcoming budget aimed at boosting revenue collection.

While addressing a seminar in Dhaka on Tuesday, the NBR chairman said both the chief adviser and finance adviser had instructed the formulation of a practical and realistic budget, according to UNB.

“We will focus on revenue-generating initiatives, shunning the expenditures,” he said.

He assured the people of implementing all laws properly so that people do not feel that they are harassed.

The seminar titled Macroeconomic Partnership and Fiscal Measures was held at the Economic Reporters’ Forum (ERF) auditorium. Policy Exchange Chairman and CEO Dr Mashrur Reaz presented the keynote paper at the seminar. ERF President Doulot Akter Mala and General Secretary Abul Kashem also spoke at the event.

Stressing the importance of revenue generation, the NBR chairman warned of broader economic consequences if collection targets were not met.

Md Abdur Rahman added that splitting the NBR into two separate divisions—Revenue Management Division and Revenue Policy Division—would be challenging, although the government has finalised the plan.

The NBR chairman expressed hope about resolving issues with the International Monetary Fund (IMF), paving the way for the release of the third and fourth tranches of the $4.7 billion loan programme.

“They (IMF) are pressing us to open the exchange rate, in lieu we are placing various types of formulas, the discussion is on, we are hoping to get a good result,” he said.

He said the recent engagements with the IMF were positive and the lending agency provided several recommendations.

“We accept many of those, and what is not possible for us to take we resist them,” he said.

Abdur Rahman Khan also acknowledged that in some areas Bangladesh could not reach a consensus.“ Negotiation is going on, may be we could reach in to agreement,” he said.​