NN Online:
The interim government is set to present a Tk 790,000 crore national budget for the 2025–26 fiscal year on June 2, as Bangladesh grapples with persistent economic challenges and seeks a path to stability and growth.
This will be the first budget from the newly appointed administration, which faces the critical tasks of curbing inflation, reviving private investment, and expanding social safety nets amid global and domestic uncertainties.
Finance Adviser Dr. Salehuddin Ahmed will deliver the budget speech via a pre-recorded broadcast at 4 pm on Bangladesh Television (BTV) and Bangladesh Betar. Private broadcasters have been requested to air the speech simultaneously using BTV’s official feed.
The proposed budget is Tk 7,000 crore lower than the current fiscal year’s Tk 797,000 crore allocation. Finance Ministry officials said the reduction reflects a strategy for fiscal consolidation and a focus on implementation.
The budget deficit is projected at Tk 226,000 crore, down from Tk 256,000 crore, accounting for 3.62% of GDP. The shortfall will be financed through foreign loans, bank borrowing, and savings instruments.
A GDP growth target of 5.5% has been set for FY26, slightly higher than this year’s revised estimate of 5.25%. However, the World Bank, IMF, and ADB forecast growth will remain below 5%.
Taming inflation remains a top priority, with the government aiming to bring it down to 7%. Still, economists caution that continued inflationary pressures may threaten that goal.
To ease burdens on lower-income groups, the budget proposes expanding social safety net programs, increasing both the number of beneficiaries and allowance amounts.
Key sectors such as agriculture, health, education, and technology will receive priority in funding. The Annual Development Programme (ADP) has been set at Tk 230,000 crore—down from Tk 265,000 crore—indicating a more targeted investment approach.
Dr. Salehuddin has assured that the budget will be business-friendly, with tax measures aimed at boosting investment, job creation, and economic growth.
The revenue collection target has been raised to Tk 518,000 crore, up from Tk 480,000 crore. However, the IMF, under its reform agenda, recommends a more ambitious target of Tk 580,000 crore.
Non-development expenditure will rise to Tk 560,000 crore, mainly driven by allocations for debt servicing, food subsidies, and banking sector reforms.
The budget also includes dedicated funds to recapitalize state-owned banks and maintain subsidies for agriculture, fertilizer, and electricity—key to supporting vital sectors.
As the country awaits the budget announcement, public sentiment remains cautiously optimistic—hopeful for relief and reform, yet mindful of implementation hurdles.
