Bangladesh has announced a record national budget for fiscal year 2026–27, marking the first major fiscal plan under Prime Minister Tarique Rahman’s government. The proposal focuses on accelerating economic growth, expanding welfare programs, and managing inflation while maintaining a relatively high fiscal deficit.
Finance Minister Amir Khosru Mahmud Chowdhury presented the Tk 9.02 trillion ($74 billion) budget, which represents an increase from the previous year’s revised allocation of Tk 8.49 trillion ($69.6 billion). The government has projected a budget deficit of Tk 2.26 trillion ($18.5 billion), equivalent to about 4.1% of GDP.
The new administration has set an ambitious 6.5% growth target and aims to reduce inflation to 6.5%, following prolonged price pressures over the past two years. The spending framework includes tax incentives for selected industries, investment support for renewable energy and solar projects, and an expansion of social protection programs. It also proposes increased public-sector wages and allocates Tk 10 billion ($82 million) to strengthen the creative economy, including technology startups and digital enterprises.
On the revenue side, the government expects to collect Tk 6.76 trillion ($55.4 billion), with the National Board of Revenue contributing Tk 5.64 trillion ($46.2 billion). The Annual Development Programme has been set at Tk 2.95 trillion ($24.2 billion), highlighting continued emphasis on infrastructure and development projects.
The budget arrives as Bangladesh’s economy surpasses the $500 billion milestone for the first time, reflecting significant long-term growth.
However, economists caution that while the budget is expansionary and growth-oriented, achieving revenue targets may be challenging due to a persistently low tax-to-GDP ratio, which remains below 8%. The plan is seen as an early test of the Rahman government’s ability to balance economic expansion with fiscal discipline.
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