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Wednesday | January 14, 2026 | Dhaka

Revised budget sets 7pc inflation target, GDP growth at 5pc

Business Report :

The government has approved a revised budget for fiscal year 2025-26, setting the inflation target at 7 percent and GDP growth at 5 percent, reflecting a cautious economic outlook amid domestic and global challenges.

The approval came Wednesday at the weekly Council of Advisers meeting at the Chief Adviser’s Office (CAO) in Dhaka, with Chief Adviser Prof Muhammad Yunus presiding. The revised budget will take effect from 1 February, Chief Adviser’s Press Secretary Shafiqul Alam told reporters at the Foreign Service Academy.

Shafiqul Alam said the government remains optimistic about meeting the revised inflation target, noting food inflation has fallen from nearly 14 percent at the end of last year to around 7 percent. “With increased vegetable production and supply during the winter season, we hope inflation will decline further,” he added.

Overall inflation is expected to settle at 7 percent by year-end. GDP growth has been revised down to 5 percent to reflect economic realities. Revenue collection has improved, with growth in July-October rising from 24.1 percent last year to 26.4 percent this year. The total revenue target has been revised upward by Tk24,000 crore-from Tk564,000 crore to Tk588,000 crore. Of this, Tk503,000 crore will come from the NBR, Tk65,000 crore from non-tax revenue, and Tk20,000 crore from non-NBR sources.
Total government expenditure is set at Tk788,000 crore, down from Tk790,000 crore, mainly due to cuts in development allocations.
The Annual Development Programme (ADP) has been revised to Tk200,000 crore, or 3.3 percent of GDP, compared with Tk230,000 crore (3.7 percent of GDP) in the original budget. Of this, Tk72,000 crore will be financed from foreign sources and Tk128,000 crore from domestic sources. Other expenditures remain at Tk588,000 crore.
The total budget deficit is fixed at Tk200,000 crore (3.3 percent of GDP), to be financed by Tk63,000 crore in external borrowing and Tk137,000 crore from domestic sources. The government expects the revised framework to ensure fiscal discipline, essential spending, and economic stability in the months ahead.