National Budget 2026-27: A Confident Presentation

Finance Minister Amir Khosru Mahmud Chowdhury presented the highest ever Tk 9.38 lakh crore national budget for FY 2026-27 in parliament on June 11.

This is the first budget of the BNP government led by Prime Minister Tarique Rahman, carrying forward the nationalist legacy of Shaheed President Ziaur Rahman and late Prime Minister Begum Khaleda Zia.

The budget sets a GDP growth target of 5.5% inflation at 6.5%. Its primary goal is to stabilise the economy while increasing revenue collection to meet government expenditure, pay higher salaries to public servants, and expand public welfare programmes.

The budget has given special importance to the education and health sectors. However, without fundamental changes in education, merely increasing the number of schools, colleges, and universities for political reasons does not produce quality human resources.

Similarly, increasing hospitals, clinics, medical colleges, and doctors with a business mindset will not bring the desired improvement in the health sector.

In the context of the global energy crisis triggered by ongoing wars, the government has increased the prices of octane, petrol, diesel, LNG, and other fuels even before the budget.

Electricity prices have also been raised. Some have questioned this pre-budget price hike.

However, in the budget speech, emphasis has been placed on the development of renewable energy. Solar power equipment has been made duty-free — undoubtedly a good decision.

It cannot be denied that the budget for FY 2026-27 presented by the Finance Minister is not a routine one.

Looking at previous budgets, it was often seen that only the figures changed with the year. This time, the budget has not been prepared by merely changing digits. There is a mark of fresh thinking. The scope of the social safety net has been expanded.

A clear proposal has been made for the phased implementation of a new pay scale for government employees.

In addition to the existing freedom fighters’ allowance, a new allowance has been introduced for families of martyrs, injured, disabled, and affected persons from the July uprising.

The grant for cancer treatment has been increased, dialysis costs for kidney patients have been reduced, and prices of heart stents and eye lenses have also been lowered. Free education for girls up to graduation level has been expanded.

A proposal has been made to provide 30% gratuity to private sector employees. Allocations have also been kept for family cards, farmer cards, etc.

The previous government neglected the development of national capacity and crippled the power and energy sector by making it import-dependent, reliant on foreign loans, and following policies dictated by foreign companies.

The current government should walk the path of building national capacity. Blindly following production-sharing contracts dictated by foreign companies would be suicidal.

In this regard, the government can set a good example of accountability by presenting facts and arguments in parliament in favour of LNG import agreements and the pre-budget increase in gas, fuel, and electricity prices.

Since the Finance Minister has described the budget as the “democratisation of the economy”, such a demand is quite justified.

A country’s economic strength is reflected in its stock market. But during the Awami League era, crony capitalists destroyed the capital market.

Many factories have remained closed for a long time, causing a section of workers to lose their jobs. New employment opportunities are also not being created adequately.

Among South Asian countries, Bangladesh has the highest rate of educated unemployment (33%). Educated unemployment means wastage of investment in education — part of which is borne by families and part by the state.

The social safety net has been widened, a new pay scale for government employees has been proposed, and special allowances have been introduced for families affected by the July uprising. Support for cancer treatment, kidney dialysis, and heart-related healthcare has been increased.

Free education for girls has been extended up to graduation level, and 30% gratuity for private sector employees has also been proposed. Borrowing to live beyond means brings problems — the BNP has experience of this.

This year, Tk 1.42 lakh crore will have to be paid as interest on past loans. Still, without necessary loans on time, keeping the wheels of the economy moving will be difficult.

There is no guarantee that loans will be available when needed. Loan availability often depends on politics. Donor agencies impose various conditions, and a good repayment record is required.

The government hopes that, besides the IMF and ADB, development partners will also come forward to help Bangladesh. Without assurances and indications, would the government have shown the courage to present such a big budget with so many concessions?

The national budget is not detached from the country’s ongoing economic situation. The banking sector is one of the key driving forces of the economy. No business or industry can flourish without the support of banks. The government also borrows heavily from banks.

This budget has kept that scope, though the amount has been reduced to avoid crowding out private investment.

The banking sector suffered the most damage during the Awami League period, and it has not yet been fully repaired. Fixing it is a major challenge for the government.

However, major challenges remain. The budget has a deficit of Tk 2.43 lakh crore, which will require strong revenue performance from the NBR. This year alone, the government will have to pay Tk 1.42 lakh crore in interest on past loans.

The banking sector continues to suffer from deep weaknesses, and generating sufficient jobs for the country’s large number of educated unemployed youth remains a critical issue.

The recent hike in fuel and electricity prices before the budget has drawn criticism, though the removal of duty on solar energy equipment is a positive step toward renewable energy.

While no single budget can solve all problems, this one shows a clear focus on public welfare and economic stability. Its success will ultimately depend on effective implementation and improved revenue collection.

(Writer: Advisory
Editor, The New Nation)