Budget session to begin amid economic strains, reform push

The first budget session of the 13th National Parliament is set to begin today (Sunday), marking a significant milestone for the government formed by the BNP following the national election held on February 12.

The session, which is the second sitting of the 13th Parliament, will commence at 3:00 pm at the Jatiya Sangsad Bhaban.

Finance and Planning Minister Amir Khasru Mahmud Chowdhury is expected to present the proposed national budget for the 2026-27 fiscal year on June 11.

President Mohammad Shahabuddin convened the session on May 7 under Article 72(1) of the Constitution.

The first session of the 13th Parliament concluded on April 30 after 25 working days, during which lawmakers passed 94 bills.

The upcoming budget session comes at a time when Bangladesh’s economy is grappling with persistent inflation, a liquidity crunch in the banking sector and sluggish revenue collection.

Against this backdrop, the government is preparing to place a proposed budget of approximately Tk 938,000 crore before parliament.

Government officials say the budget will focus on restoring economic growth, curbing inflation, increasing investment and generating employment while attempting to ease the cost-of-living burden on ordinary citizens.

Speaking recently at the Secretariat, Finance Minister Amir Khasru said a larger budget had become necessary to restore stability to the economy.

According to officials familiar with the budget framework, the government has set a revenue target of Tk 695,000 crore, including Tk 604,000 crore to be collected by the National Board of Revenue (NBR).

However, the projected expenditure will leave a budget deficit of around Tk 243,000 crore, one of the largest in the country’s history.

To bridge the gap, the government is expected to rely heavily on domestic and external borrowing.

Of the total deficit financing, approximately Tk 108,000 crore may come from the banking sector, Tk 19,000 crore from savings certificates and other non-bank sources, while foreign loans are projected to contribute Tk 111,000 crore. An additional Tk 5,000 crore is expected in foreign grants.

Economists have cautioned that excessive dependence on bank borrowing at a time of liquidity shortages and rising non-performing loans could crowd out private-sector investment and place additional pressure on the financial system.

Addressing a seminar titled “Budget 2026-27: Expectations and Reality,” organised by the Economic Reporters’ Forum (ERF) in Dhaka earlier this week, the finance minister outlined the government’s budget philosophy.

“The core philosophy of the upcoming national budget is the democratization of the economy and bringing poor and marginalized communities into the mainstream of economic activities,” he said.

He argued that low-income groups had historically been neglected in national budgets and said the government had prioritized poor households, low-income earners and homemakers in the upcoming fiscal plan.

The minister also acknowledged the challenges of preparing a national budget within a short period, saying the government was working to meet public expectations despite inheriting a fragile economic situation.

Beyond the budget, another major issue expected to dominate parliamentary discussions is the government’s renewed effort to establish a special committee for constitutional amendments.

Amid an ongoing political debate over whether the Constitution requires “amendment” or broader “reform,” the ruling BNP intends to complete the formation of a special parliamentary committee during the budget session.

An earlier attempt during the first session of parliament failed after opposition parties declined to nominate members.

On April 29, Law, Justice and Parliamentary Affairs Minister Mohammad Asaduzzaman proposed the formation of a 17-member special committee tasked with examining constitutional changes.

The government planned to nominate 12 members, while five seats were reserved for opposition lawmakers.

Presenting the proposal under Rule 266 of the parliamentary rules of procedure, the law minister said the committee would include seven BNP lawmakers and five representatives from other parties and independent members.

He urged opposition parties to nominate five members so that the committee could begin work on constitutional amendments and the implementation of the July Charter.

Responding in parliament, opposition leader and Jamaat-e-Islami chief Shafiqur Rahman said his party supported constitutional reform but believed the current initiative was focused primarily on amendments rather than comprehensive reform.

“We have differences of opinion on this issue, and those differences remain,” he told parliament, seeking additional time for consultations.

The committee could not be formed after the Jamaat-NCP alliance declined to submit nominations.

Chief Whip Nurul Islam Moni said the government remained committed to constitutional changes based on consensus.

“There is no lack of goodwill on our part regarding constitutional amendments,” he said. “Many provisions of the current Constitution require revision.

We want to form a committee comprising representatives from all parliamentary parties and complete the amendment process through consultation and consensus.”

He expressed hope that the committee could finally be constituted during the upcoming session if opposition parties submit their nominations.

With the national budget and the future shape of the Constitution both on the agenda, the budget session is expected to be one of the most consequential parliamentary sittings since the formation of the new government.