Dhaka: The Foreign Investors Chamber of Commerce and Industry (FICCI) today acknowledged the positive steps of the proposed national budget for the fiscal year 2025-26 (FY26), saying such steps would ease the burden on specific sectors and promote a more predictable tax system.
According to Bangladesh Sangbad Sangstha, FICCI expressed its initial budget reaction by highlighting several commendable aspects of the Finance Ordinance 2025. The organization noted that the allocation of Taka 100 crore for youth entrepreneurs is a beneficial move. The ordinance’s commitment to reducing the burden on key sectors and fostering a more stable tax environment is seen as a step in the right direction.
The ordinance’s reduction in the source tax for construction companies and essential goods is viewed as a practical measure that will provide relief to these critical industries. Additionally, the extension of the rebate and refund period from four to six months is expected to aid businesses in managing working capital challenges more effectively.
The proposed budget for the 2025-26 fiscal year outlines a total expenditure of Taka 7.9 lakh crore, representing 12.7% of GDP. It includes a proposed allocation of 5.6 lakh crore Taka for operational and other sectors and Taka 2.3 lakh crore for development programs. The revenue target is set at Taka 5.64 lakh crore, accounting for 9% of GDP. The budget deficit of Taka 2.26 lakh crore (3.6% of GDP) is planned to be financed through domestic and foreign sources.
Significant allocations have been earmarked for education, health, agriculture, and social programs, including Taka 35,403 crore for primary and mass education, Taka 47,563 crore for secondary and higher education, Taka 41,908 crore for health, and Taka 39,620 crore for the agriculture sector. Furthermore, a proposed allocation of Taka 5,040 crore has been designated for the Public-Private Partnership fund in the 2025-26 fiscal year to encourage investment projects through government-private partnerships, which FICCI believes will support in boosting foreign investment.