Staff Reporter :
Finance Adviser Dr. Salehuddin Ahmed is set to unveil Bangladesh’s national budget for the fiscal year 2025-26 on June 2.
The pre-recorded budget speech will be broadcast at 4:00 PM via Bangladesh Television (BTV) and Bangladesh Betar. To ensure broad public access, all private television channels and radio stations have been requested to simultaneously air the speech by relaying the BTV feed.
Sources said, this FY’s budget will drive by a sharp rise in interest payment that is crowding out fiscal space and forcing spending cuts.
Officials said, the national budget for the 2025-26 fiscal year has been proposed at Tk 7,90,000 crore, which is Tk 7,000 crore less than the current fiscal year’s original allocation.
This marks the first time in recent history that the national budget will see a decline in size.
In the ongoing fiscal year, Tk 1,13,500 crore was allocated for interest payments. However, with the persistent depreciation of the taka, this amount is projected to rise significantly.
According to finance ministry sources, interest obligations alone may increase by Tk 20,000 crore, raising the total to more than Tk 1,33,000 crore-approximately 16.8 percent of the proposed budget.
The financial pressure will intensify further when principal repayments are factored in.
The forthcoming budget emphasizes inclusive development, economic resilience, and fiscal reforms.
Notable allocations and policy directions include: A significant increase in the Ministry of Agriculture’s budget, focusing on enhancing farm productivity in non-irrigated areas.
This includes investments in modern farming techniques such as aquaponics, drip irrigation, and the use of drones for pesticide application.
To reduce energy subsidies, the government plans to establish a benchmark rate for power purchases.
For instance, the Matarbari coal-based power plant has set a tariff of Tk8.40 per unit, which will serve as a reference for other coal-based power plants.
The budget to propose keeping investment continued in major infrastructure projects, including the Rooppur Nuclear Power Plant, Matarbari Deep Sea Port, and the expansion of Hazrat Shahjalal International Airport.
These projects aim to bolster energy capacity, trade, and transportation infrastructure.
It also aims to enhance funding for education and healthcare sectors, focusing on building infrastructure at schools and tertiary institutions, and recruiting qualified teaching staff.
Besides, it proposed to increase allocations for social security programs, including welfare assistance for people with disabilities and the implementation of a new National Retirement Scheme.
The budget introduces significant tax reforms, including increases in Value Added Tax (VAT) on various goods and services. For example, VAT on restaurant bills has tripled from 5% to 15%, and similar hikes apply to clothing, mobile services, and essential items like fruits and medicines. This budget reflects the government’s commitment to fiscal consolidation while aiming to stimulate economic growth and ensure social equity.
