Dhaka: Finance Adviser Dr Salehuddin Ahmed presented a Tk 7,90,000 crore national budget for the fiscal year 2026 with the primary goal of ensuring a quality life for all citizens and creating a non-discriminatory economic system, inspired by the 2024 mass uprising.
According to Bangladesh Sangbad Sangstha, the proposed budget, accounting for 12.7% of Bangladesh’s GDP, emphasizes curbing inflation, creating employment opportunities, enhancing trade, attracting investments, and providing relief to the poorer sections through increased safety net coverage and allocations. Dr Ahmed emphasized the need for a strong economic foundation over rapid growth acceleration, stressing that this foundation would pave the way for a resilient and sustainable future for Bangladesh.
In an unprecedented move, Dr Ahmed delivered his budget speech titled “Building an Equitable and Sustainable Economic System” via a pre-recorded televised message, as the Jatiya Sangsad is currently not in session. This marks the 54th budget for Bangladesh and the first under the interim government led by Professor Dr Muhammad Yunus.
The Finance Adviser outlined significant economic indicators, noting a rise in foreign exchange reserves to $27.4 billion due to increased remittance inflows and stable export earnings. Additionally, the government anticipates receiving approximately $3.6 billion in budget support from various development partners by June.
To optimize energy sector efficiency, the budget includes a plan to reduce power generation costs by 10% and increase domestic gas supply. In the banking sector, Dr Ahmed highlighted the rise in defaulted loans, attributed to the adoption of an international standard Loan Lease Classification and provisioning system.
Dr Ahmed acknowledged the challenges faced by the interim government following the July Mass Uprising of 2024, including high inflation, labor unrest, and banking sector mismanagement. He expressed optimism about the government’s progress in stabilizing the economy and reiterated the commitment to building a society based on “Zero Poverty, Zero Unemployment, and Zero Carbon” principles.
The budget’s fiscal policies align with recommendations from reform commissions and task forces, focusing on boosting the tax-GDP ratio, supporting local industries, and fostering a business-friendly environment. Notably, the proposed budget is Tk 7,000 crore lower than the current fiscal year’s original allocation, reflecting a strategic shift towards focused investment.
Dr Ahmed proposed expanding social safety net programs to alleviate financial strain on lower-income groups, with increased funding for agriculture, health, education, and technology sectors. The Annual Development Programme allocation is projected at Tk 230,000 crore, emphasizing a targeted investment approach.
The revenue collection target for FY26 is set at Tk 5,64,000 crore, equating to 9.0% of GDP, with significant allocations for debt servicing, food subsidies, and banking sector reforms. Key budget features include increased safety net coverage, adjusted tax policies, and continued subsidies for essential industries.
Finally, Dr Ahmed highlighted the exclusion of new mega projects in the development budget, except for the ongoing Matarbari development project, aligning with the government’s strategic priorities.