[🇧🇩] Budget for 2025- 2026

Saif · May 31, 2025

Govt to unveil Tk 7.9t national budget on June 2 amid economic challenges

The interim government is set to unveil a Tk 7.9 trillion 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. Finance Adviser Dr Salehuddin Ahmed will deliver the bud

thefinancialexpress.com.bd

Govt to unveil Tk 7.9t national budget on June 2 amid economic challenges

FE ONLINE DESK
Published :
May 31, 2025 14:05
Updated :
May 31, 2025 14:21

The interim government is set to unveil a Tk 7.9 trillion 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.

Finance Adviser Dr Salehuddin Ahmed will deliver the budget speech in a pre-recorded broadcast scheduled for 4:00 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.

This will be the first budget to be presented by the newly appointed administration, which faces the daunting task of curbing persistent inflation, reinvigorating private investment and strengthening social safety nets amid global and domestic uncertainties, as per a UNB report.

In contrast to previous years, the proposed budget is Tk 0.07 trillion lower than the current fiscal year’s allocation of Tk 7.97 trillion.

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 2.26 trillion, down from Tk 2.56 trillion in the current fiscal year, representing 3.62 per cent 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 per cent has been set for FY26, slightly higher than the revised 5.25 per cent for the current year. However, international financial institutions, including the World Bank, IMF and ADB, predict growth will remain below 5.0 per cent.

Inflation control remains a priority, with the government aiming to bring it down to 7.0 per cent. However, economists warn that persistent inflationary pressures could pose risks to achieving this target.

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 2.3 trillion, a reduction from Tk 2.65 trillion 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 5.18 trillion, up from Tk 4.8 trillion in the current fiscal year. But, the IMF has recommended a more aggressive target of Tk 5.8 trillion 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 5.6 crore, an increase of Tk 0.28 trillion 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, fertilisers, 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.

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 minimise 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.

Saif · May 31, 2025

Budget to have little reflection of reform recommendations

Experts said the lack of capacity for reforms and the absence of political will – both can be key reasons behind the situation.

en.prothomalo.com

Budget to have little reflection of reform recommendations
Fakhrul Islam Dhaka
Published: 31 May 2025, 16: 52

A representational image of budget for 2025-26 fiscal year.

The upcoming budget for the 2025-26 fiscal year will have no significant reflection of the reform recommendations made by the task force and committees related to economic affairs.

There will be no new economic roadmap either. Rather, the budget management will largely remain the same as in previous years, according to sources in the finance division of the finance ministry.

Experts said the lack of capacity for reforms and the absence of political will – both can be key reasons behind the situation. Therefore, another conventional budget is going to be announced under the leadership of finance adviser Salehuddin Ahmed. However, a notable difference is that the adviser is planning to deliver a shorter budget speech.

After the political changeover in August last year, a white paper formulation committee was formed under the leadership of Debapriya Bhattacharya, a distinguished fellow of the Centre for Policy Dialogue (CPD). Besides, the authorities formed a task force to redefine economic strategy, with former BIDS director general KAS Murshid as its chief.

The white paper committee submitted a 397-page report and the task force a 526-page report to chief adviser Professor Muhammad Yunus. Later, another committee was formed to reform the National Board of Revenue (NBR), and it managed to prepare an interim report only, instead of a comprehensive one.

Now, the finance division is not considering the recommendations while drafting the budget, leading to a concern over the future of economic reforms. The finance division officials said the budget will have instructions for implementation of some recommendations, while some proposals will be left for the next budget. The finance division believes that scopes for true reforms are limited unless there is an elected government.

What will happen to the white paper recommendations

The white paper committee recommended a two-year action plan, in addition to some short-term steps. Among the initiatives are to restore economic stability, prepare for FY 2026–27 alongside the upcoming year, determine reform priorities, formulate strategies for LDC graduation, accelerate progress toward SDGs, and initiate dialogue with development partners. But the upcoming budget will have no concrete steps to implement these recommendations.

In a speech on 16 December last year, chief adviser Professor Muhammad Yunus referred to the white paper report, saying the people were stunned by its findings. He noted that the public sensed economic damage under the previous fascist government, but the actual scenario was unknown until the report quantified it. The chief adviser also said the GDP growth rates shown in recent years were exaggerated and misleading.

Citing the chief adviser’s remarks, the white paper formation committee chief Debapriya Bhattacharya told Prothom Alo that the GDP growth figures from BBS were based on outdated data. “The chief adviser categorically stated that the figures were not accurate, but the upcoming budget is being drafted based on them. Here, I see a contradiction between the budget formulation and the chief adviser’s policy.”

The economist added that the finance adviser continued within the fascist framework. He revised the current budget, lowered revenue targets, and relied on indirect taxes for the next fiscal year, but refrained from clarifying the criteria of including or excluding priority projects.

Noting the parliamentary obligation to disclose quarterly updates, Debapriya also questioned why no quarterly economic statements were made, even though there is no parliament. “If it is not done, how will the people know if the government is doing good or bad?”

The task force recommended introducing a progressive tax system to increase taxes on the wealthy, boosting allocations for education and healthcare, and making services more accessible. It also proposed dividing Biman Bangladesh into two entities, and privatising one. The budget will have no initiative to implement this proposal.

The task force suggested nurturing around 1,500 export firms that earn over USD 1 million annually, but there will be no initiatives in this regard in the budget.

However, contractionary monetary policy is being maintained to control inflation as well as restore economic stability. The foreign currency reserve is now in relatively good shape, and its decline stopped before the new budget. Experts believe it remains a big challenge how these positive indicators can be used for real economic growth.

How will the economic strategy committee proposals be addressed?

KAS Murshid, the chief of the economic strategy redefining committee, said they expect some of their recommendations to be included in the upcoming budget, especially those over making AI and digital technologies more accessible in agriculture, industry, education, and healthcare.

He, however, remains doubtful about the fate of many significant proposals in the budget, including splitting Biman or supporting 1,500 exporters.

Future of NBR reforms

It is unknown how long the NBR reform committee may take to submit its report. Still, the government has already divided the NBR into two entities – policy department and implementation department – on the advice of the IMF. In the face of protest from the NBR officials, the government has now decided to amend the ordinance that divided the NBR.

When asked if there is anything new in the budget, a senior finance division official said, “Definitely. A special fund will be formed in the next budget to implement the recently promulgated Bank Resolution Ordinance.”

In this regard, finance adviser Salehuddin Ahmed told Prothom Alo over the phone last night, “It is not right that we have not taken recommendations from the white paper committee and the task force. We have taken into account their suggestions on money laundering prevention.”

He further said reality does not permit taking all the recommendations into account, and everything cannot be included in the budget. They have due respect to the significant recommendations, but those could not be considered due to practical constraints and limitations.

Saif · Jun 1, 2025

Interim govt unveils its maiden Tk 7.9t budget today

Post-uprising interim government is set to present today its maiden national budget worth Tk 7.9 trillion for the fiscal year 2025-26, avowedly aligned with reforms and income parity. With no functioning parliament existing following the July-August changeover, the budget will be presented at 3.00

thefinancialexpress.com.bd

Interim govt unveils its maiden Tk 7.9t budget today
Aligned with reforms, intended income parity

FE REPORT
Published :
Jun 02, 2025 01:24
Updated :
Jun 02, 2025 01:24

Post-uprising interim government is set to present today its maiden national budget worth Tk 7.9 trillion for the fiscal year 2025-26, avowedly aligned with reforms and income parity.

With no functioning parliament existing following the July-August changeover, the budget will be presented at 3.00pm outside Jatiya Sangsad (national parliament) and broadcast simultaneously on state-run BTV and other private media outlets.

Finance Adviser of the interim government Dr Salehuddin Ahmed will roll out the budget through a pre-recorded speech.

For the first time since the independence of Bangladesh, the national budget is being contractionary compared to the previous years, as the current government walks a tightrope in the given situation marked by economic disruptions because of political unrest.

The last budget, presented under the Awami League government by former Finance Minister Abul Hasan Mahmud Ali, was Tk 7.97 trillion in size for the outgoing fiscal year 2024-25.

People familiar with the developments told the FE that the interim administration would prioritise restoration of macroeconomic stability, with a focus on curbing wayward inflation.

According to the Ministry of Finance, the upcoming budget will incorporate welfare initiatives to expand social-safety nets -- both by increasing the number of beneficiaries and the size of allowances -- and to create employment opportunities, particularly in rural areas.

Infrastructure development, especially road construction and renovation, will be stimulated to support this effort.

The Awami League government collapsed on August 05 following a student-mass uprising, leaving a vacuum filled with this interim government headed by Prof Yunus as Chief Adviser.

However, budget documents will be made available on the Finance Division's official website.

A similar budget presentation outside parliament also happened earlier under military or military-backed governments.

On June 09 of that 2009, the then Finance Adviser Dr AB Mirza Md. Azizul Islam unveiled a Tk 999.62-billion budget for FY2008-09.

That presentation also took place on a Monday and at 3:00pm and was broadcast via Bangladesh Television and Bangladesh Betar.

During the four consecutive terms of the Awami League, Abul Maal Abdul Muhith had presented the budget 10 times, AHM Mustafa Kamal five times, and Abul Hasan Mahmud Ali once -- spanning a total of 15 years and a half. All of those budgets were presented in parliament.

Later, the proposed budgets were discussed in the parliament for a month. The budget for the new fiscal year would have been passed by the parliament by the end of June. Since there is no parliament, there is no opportunity for discussion or debate on this budget.

However, after the budget is announced, the Ministry of Finance will seek opinions from citizens on the proposed budget, according to finance division officials.

They say there will be a menu on the finance division website to get public feedbacks on the budget.

It will be finalised based on the opinions. Thereafter, it will be approved by the Advisory Council in its meeting to be held under the chairmanship of Chief Adviser Prof Yunus any day after June 23, and will be implemented in the form of a presidential ordinance from July 01, 2025.

Saifur Rahman, the former Finance Minister of Bangladesh Nationalist Party (BNP) government, presented a total of 12 budgets during his three terms in office.

His ministerial tenure spanned December 1976 to October 2006. He served in three different governments and was the longest-serving Finance Minister of Bangladesh. He presented these 12 budgets between 1980-1981, 1991-1996, and 2001-2006.

Saif · Jun 1, 2025

First budget under interim govt today

The national budget for the financial year 2025-26, with an overall outlay of about Tk 7.9 lakh crore, will be announced today amid expectations for prudent fiscal measures in line with the spirit of the July mass uprising that ousted the autocratic Awami League regime...

www.newagebd.net

First budget under interim govt today
Expectations run high amid multiple challenges
Staff Correspondent 01 June, 2025, 20:52

The national budget for the financial year 2025-26, with an overall outlay of about Tk 7.9 lakh crore, will be announced today amid expectations for prudent fiscal measures in line with the spirit of the July mass uprising that ousted the autocratic Awami League regime in the past year.

The total new budget outlay will be Tk 7,000 crore less than the original size of Tk 7.97 lakh crore announced in June 2024 for the outgoing financial year 2024-25. As the outgoing budget is expected to be revised at Tk 7.44 lakh, the new budget will be higher by Tk 46,000 crore.

Finance adviser Salehuddin Ahmed will announce the fiscal measures, aimed at collecting around Tk 5.6 lakh crore in revenue for FY2025-26, on the television and radio live from 3:00pm.

The national annual financial document has been titled as ‘budget for ending discriminations with special focus on the country’s graduation from the least developed countries’ block in the next year and easing the price hike of essentials and expansion of social safety net programme’, according to Finance Division officials.

The first budget under the interim government that assumed office on August 8, 2024 is coming against the backdrop of multiple challenges like inflation, unemployment, rising poverty, low revenue generation, and a slowdown in both public and private investment.

The political uncertainties over the next general elections, changing geo-politics, strained relations with neighbouring India, the Rohingya issue, and climate change will also be challenging for the finance adviser to implement the fiscal measures.Political party merchandise

Unlike the finance ministers in the past two financial years, the finance adviser will announce the fiscal targets in a much better macroeconomic situation marked by stability in exchange rate, upward forex reserves, high inflow of remittance, and almost a double-digit export growth.

Besides, the global commodity market is expected to remain favourable for import-dependent Bangladesh while the government has been struggling with the growing subsidy on food, fertiliser, and fuel oils over the past three years.

The World Bank meanwhile in its commodity market outlook released in April said that commodity prices were set to fall sharply in the current calendar year -- by about 12 per cent overall -- as weakening global economic growth weighs on demand.

Besides, commodity prices were projected to decline in the next calendar year -- by another 5 per cent -- hitting a six-year low.

The interim government has already decided to implement only economically viable projects under a smaller annual development programme, worth Tk 2.3 lakh crore, with main focuses on improving the implementation rate and quality of the projects.

A host of innovative measures have also been expected by the finance ministry officials to generate greater revenue and ensure an easy release of the remaining loan tranches under the current $4.7 billion International Monetary Fund loan programme that started in 2023 during the ousted AL regime to support the balance of payment.

The reliance on the other multilateral and bilateral lenders is expected to remain almost the same to meet the budget deficit that is likely to stay around 3.5 per cent of the gross domestic product.

Finance ministry officials said that they were expecting to receive Tk 1.5 lakh crore in loans from external sources while the rest Tk 1.21 lakh crore from domestic sources to make up the deficit.

Going for a smaller ADP in the context of resource shortage and lax capacity, the finance adviser is likely to find few clues to check the growing non-development budget, which will be around Tk 4.8 lakh crore this time.

The interest payment alone for the domestic and external borrowing will take almost one-fourth of the non-development budget.

Moreover, the interim government is considering providing dearness allowance to the public employees, for which some Tk 7,000 crore would be required in the new financial year.

On Sunday, the finance adviser told reporters at his secretariat office that he was expecting to announce an acceptable budget for all.

He also said that they would get more than two weeks for stocktaking on fiscal measures with the aid of newspapers, electronic media, businesses, chamber bodies, associations and academics.

Officials said that the finance bill is expected to be promulgated after it is approved by the advisory council in a meeting on June 22.

Saif · Jun 1, 2025

A budget without illusions

No soaring GDP promises. No obsession with mega projects. No grand applause in parliament. This year, it’s just the finance adviser and his unemotional speech to be broadcast in the quiet hum of state television.

www.thedailystar.net

A budget without illusions
In a year stripped of spectacle, interim govt set to deliver an outlay shaped by restraint, realism and possibly, reform

No soaring GDP promises. No obsession with mega projects. No grand applause in parliament. This year, it's just the finance adviser and his unemotional speech to be broadcast in the quiet hum of state television.

Today, Salehuddin Ahmed will go on air at 3:00pm to deliver the first budget of the interim government -- and the first of his life. There will be no fanfare, but a nation listening in measured anticipation. It's the first realistic budget in years, if you like, precisely because it will offer a long-overdue fiscal detox.

As expected, Ahmed will speak plainly of endurance and hard choices. A nation long fed on big promises will possibly hear the "language of realism" -- something stripped of illusion. The budget will run a razor-thin 3.6 percent deficit, the leanest in more than a decade, marking a sharp departure from the looser fiscal stance of the past. It will be a day of reckoning about the controversial legacy left by the previous regime.

Ahmed will understandably seek to break with the past and, in a rare gesture of restraint, will trim the overall outlay by Tk 7,000 crore down to Tk 790,000 crore for the new fiscal year. It's not a dramatic cut, but a deliberate signal that the belts are being tightened.

A leaner budget doesn't have to ignore key areas, though. If it chooses, it can channel that power into public investments in education, healthcare and essential infrastructure for long-term prosperity. To spend or not to spend is not merely a fiscal choice; it is a political one. Yes, the government holds the power of the purse. Spending must not be shackled by arbitrary ceilings or a blind devotion to the dogma of "sound finance".

One critical area long left in the margins is unemployment. It deserves more attention from this government than ever before, as it aligns with Chief Adviser Muhammad Yunus's vision for zero unemployment. For decades, the economy has grown -- but without growing jobs. It has built roads, buildings, and bridges, yet left millions without meaningful work. A job-scarce economy took shape in the shadows of progress, quietly eroding dignity and hope. Now, that silence can no longer be ignored. It is time -- long past time -- to confront the scourge of unemployment as a central test of the country's economic vision. Growth that does not employ is growth that forgets its people.

"A growing disconnect between the skills imparted by our education system and the requirements of the private sector continues to limit employment opportunities," said Selim Raihan, a professor of economics at Dhaka University. "At the same time, a significant portion of the workforce remains trapped in the informal sector, where job security and benefits are minimal or absent," he added.

The budget arrives at a moment when the political skies are overcast. Optimism is being tempered by uncertainty, as political parties continue to seek clarity on the election timeline. Discontent has begun to ripple outward.

Protests broke out at the National Board of Revenue over an IMF-backed ordinance, disrupting operations in the final stretch before budget day. Demonstrations hit the Dhaka South City Corporation over control of the mayoral office. Another wave of protest swept through the secretariat over yet another ordinance. All of it -- almost simultaneously.

NO FANTASY

In his pre-recorded speech, Ahmed won't peddle GDP fantasies. No rosy projections -- at least not this year. The government's growth forecast, 5.5 percent, lags behind even the IMF's cautious estimate. There will be no more chasing growth at any cost, no more hollow boasts.

Last week, Bangladesh Bureau of Statistics released its provisional estimate, and it confirmed what many feared. The economy in the current fiscal year grew just 3.97 percent, the slowest pace since the pandemic year. The slowdown came from within: agriculture.

Still, there's a big number on the table: Bangladesh's GDP is expected to cross $500 billion in the new fiscal year. Many will greet the estimate with scepticism, but in a year defined by restraint, it remains a milestone worth acknowledging.

Behind these numbers is a deeper story: a country in the midst of an economic reset. For the first time in years, the budget is being shaped by economic necessity, not political whims.

But some economists have voiced concern that the interim government has yet to design a clear roadmap for economic recovery. In their view, the numbers may be sober, even honest, but without direction, they risk drifting. A budget, they argue, is more than an annual ledger. It can be a moment, perhaps the best moment, to set out a coherent strategy for rebuilding, reforming and reimagining the economy.

The metrics of judgment will shift this year. Will subsidies continue? Only for food and agricultural inputs. Will infrastructure spending surge? Not likely. The focus will shift to what the rural economy needs, not what cities want.

"The government would do well to prioritise investment in labour-intensive sectors such as agro-processing, light engineering and ICT. A robust employment strategy that supports SMEs, promotes entrepreneurship, and expands access to vocational and technical training could make a meaningful difference," Raihan said.

And taxes? Ahmed's message leaves little room for ambiguity. "I'm in the mood to end every exemption," he said at an event on May 18. The age of selective generosity may be drawing to a close.

This government will not be judged by promises, but by the progress it makes on reforms. And reforms are never gentle. In the banking sector, the central bank acted swiftly, stamping out the first flames before they could swell into a full-blown inferno. Holding reckless banks to account requires more than policy — it demands quiet resolve. In this, Bangladesh Bank passed its first true test.

Now, this administration will aim to ensure stability in the financial sector and reduce inflation. With that foundation, the forthcoming budget will prioritise social sectors to boost employment and inclusive growth.

Amid rising food prices and intensifying climate shocks, the government also plans to expand its social protection programmes and fund food security initiatives, including subsidised food for low-income households. At the same time, agricultural transformation remains a core focus. Continued subsidies for mechanisation, irrigation, and seeds are aimed at rebuilding rural resilience and supporting smallholder farmers.

Debt Roulette

Bangladesh still shoulders the financial burdens of the old regime. Officially, the aim is to lower the country's debt risk from moderate to low, as Ahmed indicated. It's not a small feat.

Yet here's the paradox: foreign borrowing will rise. Not for flashy megaprojects or political vanity, but to keep the lights on while cleaning up the mess. The higher foreign borrowing target reflects bills that can't be dodged. Energy sector gaps need plugging. The ghosts of overpriced infrastructure still haunt the balance sheet.

In a year of belt-tightening and caution, exports and remittances brought much-needed relief. Trade deficits narrowed. The current account, long in the red, showed signs of healing. Even the balance of payments, often a mirror of external vulnerability, began to tilt in the right direction. Foreign reserves hold steady at $20 billion, a sign of resilience.

But the story isn't without shadows.

Imports have recovered, but only just. Machinery imports, a barometer of investment appetite, have fallen. Letters of credit for capital goods have declined, signalling hesitation in the economy.

Globally, the winds are shifting. The trading landscape is growing more turbulent. President Donald Trump's reciprocal tariffs introduce fresh uncertainty. Closer to home, India's rising non-tariff barriers threaten to constrict trade routes.

For all this, Bangladesh's ability to negotiate -- at home and abroad -- will be tested as never before. As the country moves toward LDC graduation in November 2026, the government will come under growing pressure to navigate the complex web of bilateral and multilateral negotiations that lie ahead.

The new fiscal year stretches like a steep mountain trail -- narrow, uncertain and demanding careful steps. In this fresh beginning, caution is the only sure path forward.