[🇧🇩] Budget for 2025- 2026

[Saif]

Opting for realistic budget targets

As the countdown to the national budget announcement begins, expectations for a realistic and targeted approach from the interim government rather than ambitious, sweeping promises would not be misplaced. Such a pragmatic stance is necessary, given the diverse and pressing challenges confronting th

thefinancialexpress.com.bd

Opting for realistic budget targets

Published :
May 30, 2025 00:13
Updated :
May 30, 2025 00:13

As the countdown to the national budget announcement begins, expectations for a realistic and targeted approach from the interim government rather than ambitious, sweeping promises would not be misplaced. Such a pragmatic stance is necessary, given the diverse and pressing challenges confronting the economy at this critical juncture. Broadly, trade expansion, employment generation, and investment promotion are expected to feature prominently on the government's spending priority list --- an indication reinforced by Finance Adviser Dr. Salehuddin Ahmed in his recent interview with The Financial Express.

With the economy still reeling from the aftershocks of recent political unrest, Dr. Ahmed finds himself navigating a tight fiscal space. "Resource gap is the main challenge in budget formulation," he stated, emphasising the need for strategic resource mobilisation. The government, he revealed, plans to tap into foreign budget-support credits while also focusing on domestic avenues --- taxation, bank borrowing, and bond issuance --- to bridge the fiscal gap. Unlike previous administrations, the current government is intent on crafting a budget grounded in realism, focusing on clearly defined, attainable goals within available resources, he said.

Dr. Ahmed highlighted the importance of harmonising fiscal and monetary policies and ensuring judicious use of allocated funds, rather than expanding indiscriminately. In this context, the Annual Development Programme (ADP) will see reductions, which he admitted could affect employment. He, however, maintained that the government is consciously avoiding large, capital-intensive megaprojects and shifting its development strategy.

Media reports indicate that health and education --- two sectors chronically underfunded --- will again fall short of receiving meaningful increases. Despite expectations for corrective allocations from the interim government, no significant change appears likely. Dr. Ahmed's emphasis on skills and capacity development over infrastructure investments in these sectors may reflect a practical stance, but it fails to fully address the sectors' dire needs. It is critical that allocations are adequately matched to address glaring deficits in healthcare and education service delivery.

In a move aimed at fostering innovation and job creation, Dr. Ahmed mentioned that a dedicated fund will be introduced to support start-ups and new entrepreneurs. Furthermore, he hinted at widening the regulatory gap between listed and non-listed companies, and curtailing export incentives. The government is also looking to reduce tax expenditures by cutting back on exemptions granted through statutory regulatory orders (SROs) that often go beyond budget sanction.

The proposed budget outlay stands at Tk 7.90 trillion --- marginally lower than the current Tk 7.97 trillion. Revenue earnings have been targeted at Tk 5.18 trillion, with ADP spending set at Tk 2.30 trillion. The GDP growth target is 5.5 per cent, and inflation is expected to be brought down to 6.5 per cent from the current 9.0 per cent. The budget deficit is projected at Tk 2.26 trillion, or 3.62 per cent of GDP, which is estimated at Tk 62.5 trillion. Given the contractionary nature of this budget, it is imperative that sufficient attention is directed towards supporting small and medium enterprises, enhancing credit access for rural businesses, and bolstering sector-specific development, especially in agriculture, fisheries, and cottage industries.​

 

[Saif]

Finance adviser to unveil budget for FY 26 on Monday

Finance Adviser Dr. Salehuddin Ahmed will present the national budget for the fiscal year 2025-26 on, June 02 (Monday), according to a government hand out. This marks the first budget of the interim government that assumed power following the mass public uprising on August 05. The pre-recor

thefinancialexpress.com.bd

Finance adviser to unveil budget for FY 26 on Monday

FE ONLINE REPORT
Published :
May 29, 2025 16:20
Updated :
May 29, 2025 21:25

Finance Adviser Dr. Salehuddin Ahmed will present the national budget for the fiscal year 2025-26 on, June 02 (Monday), according to a government hand out.

This marks the first budget of the interim government that assumed power following the mass public uprising on August 05.

The pre-recorded budget speech will be aired at 4:00 PM on Bangladesh Television (BTV) and Bangladesh Betar.

To ensure wider reach, all private television channels and radio stations have been requested to broadcast the speech simultaneously by receiving the feed from BTV.

People familiar wit hthe development told the FE that that the size of the upcoming budget has been set at Tk 7.9 trillion—Tk 70 billion less than the budget for the previous fiscal year.

According to officials from the ministry of Finance and the Planning Commission, the contraction in expenditure aims to meet conditions set by the International Monetary Fund (IMF), reduce the number of non-essential projects, and contain the higher inflation persisting the economy for long.

With the Eid-ul-Azha public holidays scheduled from June 05 to 14, authorities have opted to announce the budget earlier, on June 02. Usually the budget is unveiled on Thursday and the post budget press conference on Friday.

As the National Parliament is not currently in place, the Finance Adviser will present the budget on television.

A presidential ordinance will subsequently be issued to formally enact the budget, in line with procedures applicable under the interim government.​

 

[Saif]

What the development philosophy should be for the FY2026 budget

The philosophical focus of the upcoming budget should be pro-poor and pro-people.

www.thedailystar.net

What the development philosophy should be for the FY2026 budget

VISUAL: ANWAR SOHEL

A national budget is commonly perceived as a numerical exercise. The normal questions are: what resources are available in total? How much would be mobilised from different sources? What would be the level of total expenditures? How much would be sectoral allocations? So, the budget looks like an accounting framework. Sometimes, a national budget is also referred to as a balance sheet of revenues and expenditures, between which a balance is maintained, as deemed desirable by the government.

But is a national budget a mere numerical exercise? Is it a simple accounting framework? Firstly, it's not. The allocations and expenditures in a national budget also reflect a government's economic priorities. What are the sources from which most of the revenues would be mobilised? Would they be mostly from direct taxes or indirect taxes, or from non-tax sources? Similarly, which sectors would get the major parts of budget expenditures—physical infrastructures like roads and bridges, or social infrastructures like health and education? Secondly, these priorities are not determined in a vacuum. They are guided by the government's vision, which is formed based on the development philosophy it holds.

The interim government of Bangladesh will present the proposed national budget for FY2025-26 on June 2. The budget is expected to provide a roadmap for the country's future development.

Over the past few months, there have been many discussions on the upcoming budget, the debates revolving around the budget size, probable sectoral allocations, resource constraints, priorities in the budget, and strategies to be followed, among other topics. The discussions mostly focused on the numerical aspects of the budget, as well as its priorities. Much of the analyses were around the new Annual Development Programme (ADP), which was approved recently.

The size of the FY2026 budget is set to be Tk 7.9 lakh crore, about Tk 7,000 crore less than the current fiscal year's original budget. Non-development expenditures are expected to be set at Tk 5.6 lakh crore, up by Tk 28,000 crore from the current budget's allocation. Debt servicing and ballooning subsidies would eat up a significant portion of the new budget. Interest payments are expected to amount to Tk 1.33 lakh crore, which will increase if principal payments are included. The government has allocated Tk 88,000 crore for subsidies. All these mounting costs have left little room for discretionary spending and have created fiscal strains.

As a result, the development expenditures in the FY2026 budget is set to be Tk 2.3 lakh crore, Tk 35,000 crore less than the original budget of FY2024-25. The development budget is the lowest in four years. Allocations to almost all sectors have been cut. About 70 percent of the budget will go to five sectors: transport and communication (25.64 percent), power and energy (14.08 percent), education (12.42 percent), housing and community facilities (9.9 percent), and health (7.89 percent). On the revenue side, the deficit in resource mobilisation may range from Tk 42,500 crore to Tk 54,000 crore.

Third, in terms of content, the objective of the upcoming budget has been stated to be restoration of economic discipline and economic stability. The budget will not be anchored in irresponsible and ad hoc policy actions and resource allocations. This would imply restoring transparency and accountability in public resource mobilisation and public expenditures. Some of the strategies of the budget will be reducing inflation, taking fewer foreign loans, prioritising ongoing projects and not undertaking new projects, and reducing additional costs and stopping corruption and inconsistencies in projects. The government has used a digital budget planning system to categorise budget spending, allowing for more transparent tracking of fund utilisation. This is important, given that Bangladesh performs poorly in budget transparency, ranking 37th among 125 countries in the 2023 Open Budget Survey.

In this context, the question arises: what development philosophy does the FY2025-26 budget uphold? Is it based on a pro-growth development philosophy or a pro-people development philosophy? Some observations are pertinent in this regard.

First, around 40 percent of the development expenditures are devoted to transport and communication and power and energy. These two sectors are critical for boosting production, and thus for enhancing economic growth. Related to this are the allocations to some megaprojects, i.e. the Bhola-Barishal 11-km-long bridge project at the cost of Tk 17,466 crore, the Bay Terminal Marine Infrastructure Development Project at the cost of Tk 13,525 crore, and Kalurghat rail-and-bridge project at the cost of Tk 1,156 crore. The implicit assumption behind these megaprojects may be that they would boost economic growth. Whether they do so or not, undertaking megaprojects basically indicates a leaning towards a pro-growth philosophy.

Second, issues like health and education are basic ingredients for enhancing human development. Yet, the health sector accounts for only about 7.89 percent of the development allocation, while education accounts for 12.42 percent of the development expenditure. Together, these two sectors account for over 20 percent of the development budget, which is lower than the allocation for transport and communication alone (25.64 percent). In fact, the transport and communication budget is double the education budget and triple the health budget. Furthermore, the development expenditure in the health sector has been cut by 13 percent compared to the outgoing budget, and education by nine percent. Efficient and effective implementation requires cuts in expenditures, no doubt, but those cuts cannot be indiscriminate across the board. If the development philosophy of the FY2025-26 budget were pro-people, the expenditures in the human development sectors would have been adequate and protected.

Third, as usual, agriculture has remained a neglected sector in the upcoming budget. The allocation of Tk 10,795 crore to agriculture represents less than five percent of the total development budget. In fact, compared to the outgoing budget, the agriculture allocation has been slashed significantly, by 18 percent. Given the importance of the agricultural sector in the country's economy and society, this can neither be termed as pro-poor nor be identified as pro-people. The same conclusion holds with regard to the allocations to the environment, climate change, and water resources. Together, they received Tk 10,641 crore, less than five percent of the development expenditures.

Given the nature and structure of Bangladesh's economy, its current economic realities, and the aspirations of its people, the philosophical focus of the FY2026 budget should be pro-poor and pro-people. Its preoccupation should not be economic growth alone; rather, it should be human development. Formulating and implementing an annual national budget with those goals can ensure both economic growth and human development in Bangladesh.

Selim Jahan is former director of the Human Development Report Office under the United Nations Development Programme (UNDP) and lead author of the Human Development Report.​

 

[Saif]

Budget must prepare us for difficult times

Low GDP growth demands political stability so as to boost investor confidence

www.thedailystar.net

Budget must prepare us for difficult times
Low GDP growth demands political stability so as to boost investor confidence

VISUAL: STAR

For quite some time, ordinary citizens have been feeling the brunt of economic hardship due to rising prices and other external shocks, including job losses. Therefore, the fact that the economy has experienced one of the slowest growth rates this fiscal year since FY1990-91, excluding the first year of the pandemic, does not come as a surprise. Bangladesh's GDP grew by 3.97 percent—almost half the inflated growth rate projected by the Awami League government when it prepared the budget last year. Although the interim government has revised the projection to five percent, the current provisional estimate is closer to what the World Bank and the Asian Development Bank (ADB) has forecast: 3.3 and 3.9 percent, respectively.

The decline has been attributed mainly to the sluggish performance of the agriculture and service sectors, which respectively saw growth rates of 1.79 percent and 4.51 percent in the current fiscal year, compared to 3.3 percent and 5.09 percent in FY2023-24. While the prolonged floods last year impacted agricultural output, the stubbornly high inflation dampened wholesale and retail sales in the service sector. But thanks to the RMG industry, the industrial sector performed well despite political tensions, labour unrest, and factory closures, with growth increasing from 3.51 percent in FY2023-24 to 4.34 percent this year.

However, the outlook for the coming fiscal year does not raise spirits either, as global disruptive factors, including the imposition of US tariffs and Bangladesh's graduation from LDC status, present added challenges. Domestically, slumped investment, especially in the private sector, has failed to create job opportunities. In fact, according to the Centre for Policy Dialogue (CPD), 2.1 million jobs were lost in the first half of the current fiscal year. More concerningly, women accounted for the majority of those who lost their jobs. International factors, such as severe cuts in donor-funded projects in the NGO sector, played a part in this crisis.

Unfortunately, the steps taken by the interim government over the last nine and a half months—including banking reforms, attempts to encourage investment, and the splitting of the National Board of Revenue—have not yet delivered any positive results. In fact, the banking sector is still reeling from the heavy burden of non-performing loans and irregularities incurred during the Awami League era. Under these circumstances, the upcoming budget must reflect the government's plan to tackle rising unemployment, high inflation, and illicit financial outflows. At the same time, the marginalised, including those at risk of falling below the poverty line, must be supported with well-designed and expanded social safety net programmes. Incentives should also be provided to sectors that can generate substantive employment, with a special focus on the female workforce.

At the same time, we agree with economists that the interim government should soon declare a definite roadmap for the election considering that it would provide businesses, among other stakeholders, with the predictability they require for planning investments and economic activities. Last but not least, the law and order situation must be improved to reignite investor confidence and reaccelerate the economic wheel.​

 

[Saif]

Finance Adviser to unveil FY26 budget on Jun 2

Finance Adviser Dr Salehuddin Ahmed will present the national budget for the fiscal year 2025-26 on June 02 (Monday), according to a government handout. This marks the first budget of the interim government that assumed power following the mass public uprising on August 05. The pre-recorded budge

thefinancialexpress.com.bd

Finance Adviser to unveil FY26 budget on Jun 2

FE REPORT
Published :
May 30, 2025 08:16
Updated :
May 30, 2025 08:16

Finance Adviser Dr Salehuddin Ahmed will present the national budget for the fiscal year 2025-26 on June 02 (Monday), according to a government handout.

This marks the first budget of the interim government that assumed power following the mass public uprising on August 05.

The pre-recorded budget speech will be aired at 4:00 PM on Bangladesh Television (BTV) and Bangladesh Betar.

To ensure wider reach, all private television channels and radio stations have been requested to broadcast the speech simultaneously by receiving the feed from BTV.

People familiar with the development told the FE that that the size of the upcoming budget has been set at Tk 7.9 trillion-Tk 70 billion less than the budget for the previous fiscal year.

According to officials from the Ministry of Finance and the Planning Commission, the contraction in expenditure aims to meet conditions set by the International Monetary Fund (IMF), reduce the number of non-essential projects, and contain the higher inflation persisting the economy for long.

With the Eid-ul-Azha public holidays scheduled from June 05 to 14, authorities have opted to announce the budget earlier, on June 02. Usually the budget is unveiled on Thursday and the post budget press conference on Friday.

As the National Parliament is not currently in place, the Finance Adviser will present the budget through electronic media.

A presidential ordinance will subsequently be issued to formally enact the budget, in line with procedures applicable under the interim government.​

 

[Saif]

Budget amid lower growth

For the third consecutive year, the country's economic growth rate has declined, reflecting the sluggish trend in the overall development scenario. The national statistical agency released the primary estimate of the Gross Domestic Product (GDP) for the current fiscal year (FY25) last week. I

thefinancialexpress.com.bd

Budget amid lower growth

Asjadul Kibria
Published :
May 31, 2025 23:55
Updated :
May 31, 2025 23:55

For the third consecutive year, the country's economic growth rate has declined, reflecting the sluggish trend in the overall development scenario. The national statistical agency released the primary estimate of the Gross Domestic Product (GDP) for the current fiscal year (FY25) last week. It showed that the GDP growth rate declined to 3.97 per cent in FY25 from 4.22 per cent in FY24. Earlier in FY23, the growth rate was 5.78 per cent, significantly lower than 7.10 per cent in FY22.

The latest decline in the growth rate is predictable and also realistic. Unlike the previous years when the now-ousted Hasina regime used to manipulate data to show inflated figures of economic growth, no such thing happened this time. The national statistical agency collects, calculates and releases the data of national accounts independently and professionally.

The provisional estimate of GDP growth of around 4 per cent is close to projections made by three international financial institutions. The World Bank projected that Bangladesh's economy would grow by 3.30 per cent in the current fiscal year. The International Monetary Fund (IMF) predicted a figure of 3.76 per cent, while the Asian Development Bank (ADB) mentioned 3.90 per cent. The Bangladesh Bank, the country's central bank, projected that the economic growth rate may hover at the 4.0 to 5.0 per cent range in FY25. Bangladesh Bank, in its half-yearly Monetary Policy Statement (MPS), released in January last, also cautioned that the growth outlook did not appear optimistic due to various challenges.

The latest estimate also showed that the agriculture growth rate declined sharply to 1.79 per cent in the current fiscal year from 3.30 per cent in the past fiscal year. The poor performance of farm activities had a significant impact on overall economic output. The services sector also experienced sluggish growth in the current fiscal year, recording a modest growth of 5.09 per cent from 5.37 per cent in FY24. The industrial sector, however, posted a modest rise in growth to 4.34 per cent in FY25 from 3.51 per cent last year.

One needs to keep in mind that the current fiscal year began amid heavy turbulence due to a student-led mass uprising against the oppressive rule of Sheikh Hasina. To supress the mass movement, the autocratic regime resorted to brutal killings, and at least 1,400 people sacrificed their lives. More than 20,000 people were injured, and many were intimidated by the brutal force of the Hasina regime. Nevertheless, the mass uprising finally compelled her to step down and flee on August 5 to take shelter in India. On August 8, an interim government took charge led by Nobel laureate Professor Muhammad Yunus. It took a couple of months to restore law and order and bring business back to normal, although economic activities, severely disrupted during July and August, have been struggling to recover fully.

The interim government has, however, initiated several reform measures to fix the various loopholes in the country's macroeconomic management. During the Hasina regime, poor governance led to an increase in bad loans, making the financial sector vulnerable and fuelling capital flight from the country. Data manipulation was also widespread to conceal the weaknesses of macroeconomic mismanagement, such as the sharp depletion of foreign exchange reserves. Fixing the problems within a short period is difficult, and the interim government has faced a daunting challenge in doing so.

Against this backdrop of sluggish economic growth and fractured economic management, finance adviser Dr Salehuddin Ahmed will present the national budget for the next fiscal year (FY26) tomorrow. It will be a televised placement as there is no parliament in the country. The finance adviser is likely to keep the budget outlay at Tk 7.0 trillion, which is 12 per cent less than the original outlay of the FY25 budget, which was Tk 7.97 trillion.

The core challenge for the finance adviser is to focus on containing inflationary pressure, creating environment for investment, and providing rooms for job creation. As the interim government is not obsessed with growth, it gives him some necessary space to manoeuvre the fiscal measures. The indication is already there that the adviser has decided to reduce duties and value-added taxes (VAT) on a good number of products and services. The minimum threshold of tax-free income will also be increased to adjust the real income with high inflation. With the continuation of the tight monetary stance to contain inflation, well-coordinated fiscal measures will ease the pressure of inflation in the near future.

The budget is faced with a pressing challenge-the urgent need to create sufficient jobs for the millions of people in the country. According to the International Labour Organization (ILO), Bangladesh has a labour force of 71 million, with a labour participation rate of 49.5 per cent. The youth unemployment rate is a staggering 16.8 per cent, and the share of youth not in employment, education or training is a concerning 30.9 per cent. The ILO's recent caution that youth unemployment in Bangladesh is expected to remain high further underscores the urgency of the situation. The finance adviser's plan for job creation, to be revealed tomorrow after the budget is presented, is eagerly awaited.

To create necessary jobs for millions of youths, the country needs more investment in the manufacturing and services sectors. The provisional estimate of BBS showed that the investment-GDP ratio declined to 29.38 per cent in the current fiscal year from 30.70 per cent last year. The alarming thing is that the ratio of private investment declined sharply to 22.48 per cent from 23.96 per cent during the period under review. This decline in private investment has a direct impact on job creation, as it hampers the growth of businesses and the expansion of job opportunities. The decline in investment is a reflection of lower business confidence, and the trend has been persisting for the last couple of years. The net inflow of annual foreign direct investment (FDI) also declined by 13 per cent last year, marking the third consecutive year of a decline in foreign investment. Therefore, the next budget needs to outline some visible measures to attract investment.

It's important to remember that budgetary measures alone are not enough to attract investment. A stable socio-political environment is equally crucial. Investors, particularly foreign investors, seek stability to ensure the sustainability of their investments in the medium and long term. While the interim government's efforts to improve the investment climate are commendable, the current situation has yet to provide a positive signal for long-term investment. If the dust takes longer to settle, the rise in investment will inevitably be delayed.​

 

[Saif]

Rollback of protective taxes begins under new budget

An envisaged rollback of protective taxes on 'made-in -Bangladesh' package of products begins in the upcoming fiscal year with the planned levying of standard 15-percent VAT on all goods after 2030. Local manufacturers of blender, juicer, rice cooker, oven, mobile-phone set, sanitary ware, m

thefinancialexpress.com.bd

Preparing for post-graduation free- trade regime
Rollback of protective taxes begins under new budget
Tax package for 'Made-in-Bangladesh' products to be phased out

Doulot Akter Mala
Published :
Jun 01, 2025 00:25
Updated :
Jun 01, 2025 00:25

An envisaged rollback of protective taxes on 'made-in -Bangladesh' package of products begins in the upcoming fiscal year with the planned levying of standard 15-percent VAT on all goods after 2030.

Local manufacturers of blender, juicer, rice cooker, oven, mobile-phone set, sanitary ware, motor vehicles, and three-wheelers may come under the fiscal plan.

Also, income tax for corporate taxpayers, irrespective of being in profit or loss, is poised to go up to 1.0 per cent from the existing 0.6 per cent.

The tax is known as 'unjust' one in the corporate world as losing concerns are compelled to pay the tax, known as 'turnover tax'.

The Finance Ordinance 2026 ratifying the new budget under the current interim government may come with these significant changes tomorrow (June 2, 2025).

Chairman of Policy Exchange Bangladesh Dr Masrur Reaz hails the move to phase out rather than sudden imposition of high taxes.

"I welcome the move that government has not slapped high tax overnight and is coming with a phase-out plan. It would give investors a comfort," he told The Financial Express.

However, he finds the minimum tax against the principle of direct taxation that must apply to income.

"It's a fundamental question whether such tax should exist or not. Increasing the tax looks like nailing the coffin that would hurt small businesses," he observes.

Tax officials say corporate income-tax benefit for 'Made in Bangladesh' would continue as per Statutory Regulatory Order, issued in 2021.

A senior official of the NBR says the tax-expenditure policy 2025, issued earlier, has capped tax benefit for maximum five consecutive tax years which the revenue authority has to follow from the forthcoming fiscal year.

"As VAT exemptions were given for the current FY, it is easier to phase out while it is difficult for income tax to impose such tax now as the tax waiver was offered for 10 to 20 years in 2021," he adds.

Under the plan, an industry enjoying the zero-rated VAT under the package would have to pay 5.0-percent tax for next two years followed by 7.5 per cent in FY2027-29 and 10 per cent for only FY2030 and 15 per cent from FY31.

However, some of the items, including essential items, rice, pulses, green vegetables etc, would continue to enjoy tax exemptions.

Manufacturers of high-end battery would get VAT waivers for next two years and pay 5.0 per cent for the remaining three years until 2030.

Any investors willing to establish hospitals would enjoy VAT exemptions on import of many items and waiver at local stage, the official says.

Also, sanitary napkin would enjoy VAT exemption until 2030 on both import of raw materials and local manufacturing stage.

"Investors would get a predictable VAT structure to plan their business-operation cost," the official says, detailing the new fiscal measures.

He notes that wide-spread allegations over lack of predictability in tax structure would be resolved with the step.

Currently, motor-cars, three- and four-wheelers, home and kitchen appliances and light -engineering products, some IT hardware are enjoying tax benefits under the made- in - Bangladesh campaign.

In 2021, tax exemption was given to automobiles for 20 years, to different home appliances for 10 years and to agro-products, light engineering and IT hardware for 10 years.

Officials have said the government has pressure from development partners to increase country's tax-to-GDP ratio mobilising more domestic resources.

As per International Monetary Fund (IMF) conditions, the revenue board will have to collect Tk 3.0 billion from policy measures and Tk 1.0 billion from administrative measures by the next fiscal year.

The tax-expenditure policy defines that only parliament would be empowered to offer any type of tax exemptions.

The policy has tightened tax-breaks by barring any agency or authority but the government revenue board from placing any tax-exemption issue before parliament.

The draft framework, obtained by the FE, is an integrated one comprising income tax, customs and value-added tax (VAT) wings.

For transfer of land, the purchasers would be able to enjoy a pared-down 15-per cent tax on capital gains for five corresponding years. Thereafter, the tax rate would be determined on the regular tax slab.

Despite upward revision of tax-free income ceiling, individual taxpayers in the first slab would have to pay higher taxes with the upward revision of tax rate to 10 per cent from 5.0 per cent.

Currently, individual taxpayers exceeding Tk 3.8 million in annual income would be required to pay 30-percent tax and the threshold would be lowered down to Tk 3.5 million.

Tax liberty is also planned to be squeezed in the run-up to Bangladesh's graduation from the LDC status, set for next year, after which the country would have to lose many trade benefits on the global market.​

 

[Saif]

Surprise unlikely in upcoming budget: Debapriya

Distinguished Fellow of the Centre for Policy Dialogue (CPD) Dr Debapriya Bhattacharya on Saturday said as there are no significant initiatives for recovering defaulted loans, bringing back laundered money, or expanding the tax net there’s no real surprise in the proposed budget. Recovering

thefinancialexpress.com.bd

Surprise unlikely in upcoming budget: Debapriya

Published :
May 31, 2025 16:33
Updated :
May 31, 2025 17:39

Distinguished Fellow of the Centre for Policy Dialogue (CPD) Dr Debapriya Bhattacharya on Saturday said as there are no significant initiatives for recovering defaulted loans, bringing back laundered money, or expanding the tax net there’s no real surprise in the proposed budget.

Recovering embezzled money, laundered funds and defaulted loans during the previous regime could serve as an innovative source of revenue in the upcoming national budget, he said, UNB reports.

He made the remark while speaking at a pre-budget shadow parliament session organised by Debate for Democracy at the Bangladesh Film Development Corporation (BFDC).

The upcoming budget seems to follow a conventional path with little scope for newness, he said.

Debapriya highlighted both the achievements and challenges of the current government’s economic management.

He said the government’s major success in recent times has been reducing the pressure of foreign debt by repaying $5 billion, which had been steadily increasing year after year under the previous government.

“The immediate past government left the country in a precarious situation with heavy foreign debt,” he said.

Debapriya praised the current government’s efforts in managing the external sector, including remittance inflows, export earnings, debt servicing, reserve accumulation, and exchange rate stability.

Criticising the existing development projects, he said that many are overvalued and nearly 40 percent of the expenditures are fictitious.

“The projects responsible for financial outflow in the past continue unabated,” he added.

Debapriya also stressed the need for proper management of revenue expenditure to build trust among taxpayers.

“Our tax system remains inequitable,” he said, adding that while some macroeconomic stability has been achieved in the external sector, private sector investment and domestic economic stability are still far from satisfactory.”

Debate for Democracy Chairman Hasan Ahmed Chowdhury Kiron presided over the session.​