[🇧🇩] Budget for 2025- 2026

[Saif]

Revised budget warrants a balancing act

The mid-year budget revision for fiscal year 2025-26 has placed the interim government in an undeniably difficult position. On the one side lies a formidable financial crunch; on the other, persistent demands from ministries and agencies for the full release of their allocated funds. Reconciling th

thefinancialexpress.com.bd

Revised budget warrants a balancing act

Published :
Dec 04, 2025 23:01
Updated :
Dec 04, 2025 23:02

The mid-year budget revision for fiscal year 2025-26 has placed the interim government in an undeniably difficult position. On the one side lies a formidable financial crunch; on the other, persistent demands from ministries and agencies for the full release of their allocated funds. Reconciling these opposing pressures will require not only a meticulous recalibration of the budget but also prudent execution for the remainder of the fiscal year. While this is a reality the finance division has to encounter every year, the situation this year is more difficult as it involves a cautious balancing of critical factors.

No doubt, the current situation serves as a timely reminder for ministries and divisions to prepare realistic funding requests in the revised budget so that the government can limit excessive bank borrowing and its associated interest burden. The Finance Division has reportedly begun consultations with relevant agencies, issuing cautionary guidance to help streamline spending in line with revenue realities. Yet reports indicate that certain ministries insist they will require their entire operating budgets, despite clear signs of fiscal stress. The finance authorities, noting the slower-than-expected revenue flow earlier in the year, have urged ministries to strictly adhere to austerity directives.

A report in this newspaper underlines, citing senior finance ministry officials, the gravity of the situation: nearly one-fifth of the government's annual operating expenditure goes towards paying interest on domestic loans. Debt-servicing obligations have risen steadily, and for the current fiscal year alone, Tk 1.0 trillion has been allocated for interest payments on domestic borrowing. Against this backdrop, the need for realistic, carefully justified fund demands cannot be overstated. The government's cautious tone also reflects its immediate spending commitments-several of which are unavoidable. Approximately Tk 30 billion will be required to conduct the forthcoming national elections. In addition, the recent decision to raise house-rent allowances for MPO-listed teachers is expected to add another Tk 40 billion to the expenditure burden. Furthermore, the government has pledged around Tk 200 billion to capitalise the newly established United Islamic Bank, created to stabilise five distressed Islamic banks. These commitments, though necessary, will significantly strain public finances, requiring higher borrowings from the banking and treasury systems unless offset elsewhere.

Given the scale of these pressures, revenue mobilisation emerges as the pivotal determinant of fiscal stability. Encouragingly, according to the National Board of Revenue (NBR) sources, revenue collection has gained momentum, posting over 15 per cent growth during the July-October period. If this upward trend continues, the government's reliance on bank borrowing for deficit financing could ease somewhat. Even so, the road ahead remains challenging. Austerity can help contain spending but cannot, on its own, bridge the fiscal gap. Ultimately, the government's ability to navigate the remainder of the year will depend heavily on how effectively it can mobilise domestic revenue-especially tax revenue-while enforcing disciplined expenditure across ministries. In this delicate balancing act, prudent financial stewardship will be crucial to maintaining stability amid tightening fiscal constraints.​

 

[Saif]

https://thefinancialexpress.com.bd/economy/revised-budget-new-ones-outline-going-for-cas-perusal-today

Revised budget, new one's outline going for CA's perusal today
An upscale Tk8.5t budget for FY27 likely

Syful Islam
Published :
Dec 22, 2025 00:25
Updated :
Dec 22, 2025 00:25

A pared-down draft revised budget for the current fiscal year and an outline of the next one are being placed before Chief Adviser Muhammad Yunus today to seek his advice and directions, officials say.

An upscale Tk 8.5-trillion budget for next fiscal year is likely to be framed by the interim government and left to the upcoming elected one for execution, sources say as the budgeting process gets going.

Finance Adviser Dr Salehuddin Ahmed, central bank governor Dr Ahsan H Mansur, finance secretary Dr Khairuzzaman Mozumder and officials from the budget wing of the ministry will attend the consultative programme on budgeting at his crucial time in the aftermath of regime change through uprising.

Officials say the finance division will need up to January-end to finalise the revised budget for the fiscal year 2025-26.

An initial estimation of the revised operating budget now stands at Tk 5.20 trillion in a climb-down from Tk 5.35 trillion earmarked in the actual budget.

However, officials say, the revision of spending for the current Annual Development Programme (ADP) has yet to be completed -- this is here where major reckonings and pruning are to take place in the wake of belt-tightening by the interim government.

A senior finance official told The Financial Express that there was little chance to drastically cut the current budget of Tk 7.90 trillion since the outlay itself is smaller than the previous one of Tk 7.97 trillion.

He estimates that once finalised, the revised budget for the current fiscal year may stand between Tk 7.8 trillion and Tk 7.85 trillion.

Finance Division officials also say usually they place revised budget and new budget outlines to the Prime Minister or Chief Adviser in mid-May, making it almost final, and seeking his/her last-minute advice.

However, since the interim-government would not be in office next May, and scheduled to leave by mid-February following a fresh general election, the finance officials decide to apprise the head of stand-in government of present state of budget docs much earlier than the usual practice.

Speaking about unforeseen financial obligations, a senior Finance Division official says the government has already paid Tk 200 billion to newly formed five-in-one Sammilito Islamic Bank and an additional some Tk 40 billion will be needed to pay enhanced house-rent allowances for the MPO-listed teachers.

"The two new allocations will put pressure on the size of the budget but won't exceed the actual size," he says.

Sources have said while presenting an outline of the upcoming budget, the officials may seek Chief Adviser's nod to go forward with a plan to prepare a Tk 8.5-trillion outlay for the new fiscal year.

The GDP (gross domestic product)-growth target for the next fiscal year is estimated at 6.0 per cent and they set a target to keep inflation at around 6.0 per cent.

"These estimations are at a very preliminary stage and will be finalised once the new government takes office," says another finance official, on the cusp transition through the set February-12th polls.​