Biggest-ever budget planned for FY27
The government is preparing an ambitious budget of Tk 920,803 crore for the next fiscal year, aiming to stimulate economic growth and address mounting global and domestic challenges, making it the largest national budget in the country’s history at a time when the economy continues to face pressure on multiple fronts.
Finance Minister Amir Khasru Mahmud Chowdhury is scheduled to place the proposed budget for fiscal year 2026–27 in the Jatiya Sangsad on 11 June.
According to official sources, the upcoming budget has been designed to reflect the BNP government’s election pledges, expand social safety net programmes, support economic recovery amid the ongoing global crisis, encourage both domestic and foreign investment, and generate employment opportunities.
A major focus of the budget will be direct government support to citizens through four new initiatives — Family Card, Farmer Card, Health Card, and a canal excavation (Khalkata) programme.
The budget is also expected to include steps for the partial implementation of a new pay scale for public servants.
A Finance Ministry official said that despite significant global and domestic economic challenges, an ambitious proposal has been placed before the minister, as substantial funding will be required to meet election commitments and implement pay scale reforms.
Under the revised budget, the total revenue target was set at Tk 5.88 lakh crore, of which Tk 5.03 lakh crore was expected from the National Board of Revenue (NBR).
However, despite more than 11 per cent growth in collections, the NBR recorded a record shortfall of Tk 98,000 crore during the first nine months of the fiscal year.
It collected Tk 2,87,862 crore against a target of Tk 3,85,852 crore, leaving a deficit of Tk 97,990 crore.
For the next fiscal year, the revenue target may be raised to Tk 6.50 lakh crore. Meanwhile, the fiscal deficit is expected to widen to around 5 per cent of GDP, up from the revised target of 3.3 per cent, due to weak revenue performance and rising expenditure pressures.
The revised budget also projected GDP growth at 5 per cent and inflation at 7 per cent.
The government has also formed a committee to review the current Annual Development Programme (ADP), with plans to drop a number of projects taken by previous administrations and include new projects aligned with its election manifesto. The size of the ADP may be fixed at around Tk 3.05 lakh crore.
In its first budget of the current term, the BNP government is targeting GDP growth of 6.5 per cent while seeking to bring inflation down to 7 per cent.
The principal objective is to reduce overall inflation and keep essential commodity prices within the purchasing power of ordinary people.
To fulfil its election manifesto commitments, fresh allocations are expected primarily for the Family Card, Farmer Card, Health Card, and Khalkata programmes.
In addition, special allocations may be included based on recommendations of the secretary-level committee for the phased implementation of the ninth pay scale.
A significant increase in subsidies for the power and energy sector is also anticipated.
Recently, the Power and Energy Division wrote to the Finance Division seeking additional subsidies for the energy sector in several phases. Officials estimate that an additional Tk 1.30 lakh crore will be required to implement these programmes.
It is estimated that Tk 13,000 crore will be needed in the first year alone for the new Family Card programme, which is aimed at supporting 40 lakh families.
Former World Bank Dhaka office lead economist Zahid Hussain told The New Nation that amid continuing economic strain, even if the government has the fiscal capacity, it should avoid adopting an overly ambitious budget that may not reflect present economic realities.
He stressed that the immediate priority should be economic stabilisation through prudent and realistic fiscal measures, including reducing unnecessary expenditure.
In this context, he suggested rationalising allocations under the ADP and cutting non-essential spending to better manage the prevailing economic challenges.
