Bangladesh: Finance Adviser Dr Salehuddin Ahmed will unveil a Tk 7,90,000 crore national budget for FY2025–26 on June 2, 2025, prioritising inflation control, job creation, economic stability, and fiscal discipline.
This marks the first budget under the interim government led by Nobel laureate Professor Dr Muhammad Yunus, following the ouster of the previous regime.
The proposed budget is 0.87% smaller than the previous year’s Tk 7,97,000 crore allocation. The development budget has been reduced by Tk 35,000 crore to Tk 2,30,000 crore, while the revenue budget will increase by Tk 28,000 crore to Tk 5,60,000 crore.
A projected deficit of Tk 2,26,000 crore (3.62% of GDP) will be met through foreign loans, bank borrowings, and savings instruments.
Key Targets and Priorities:
GDP Growth: Target set at 5.5%
Inflation: Targeted to fall to 6.5%
Revenue Collection: Tk 5,64,000 crore overall; NBR target set at Tk 4,99,000 crore
Tax Reforms: Introduction of uniform 15% VAT rate; digital tax filing expansion; VAT enlistment threshold lowered from Tk 3 crore to Tk 50 lakh
Social Safety Nets: Expanded coverage and increased allowances
Subsidies: Tk 1,16,000 crore allocated, primarily for electricity and fertiliser
Interest Payments: Around 22% of revenue budget
Public Salaries and Allowances: Tk 82,000 crore, with likely dearness allowance hike
Spending Focus:
Top 10 ministries/divisions: To receive Tk 2,96,000 crore
Priority Sectors: Agriculture, health, education, technology, and social protection
No new mega projects, except Matarbari, financed through Japanese long-term loans
Banking Sector: Allocations to cover state-owned bank capital shortfalls
Officials stressed that the FY26 budget is practical, implementable, and aligned with macroeconomic priorities.
The focus will remain on controlling inflation, encouraging investment, supporting exports, and enhancing revenue mobilisation while maintaining fiscal discipline.
