Finance Adviser Dr Salehuddin Ahmed is set to unveil a Tk 7,90,000 crore national budget for the 2025–26 fiscal year (FY26) tomorrow (June 2) — the first under the interim government led by Chief Adviser Professor Dr Muhammad Yunus.
The budget comes at a critical time, as the new administration, formed following the ouster of the Sheikh Hasina regime in a student-led uprising, aims to stabilise the economy, curb inflation, and create employment opportunities.
Dr Salehuddin’s pre-recorded budget speech will be broadcast at 3 pm on Bangladesh Television and Bangladesh Betar. Private TV and radio stations have been asked to air the feed simultaneously.
Finance ministry officials said the FY26 budget is slightly smaller than the current year’s Tk 7,97,000 crore allocation, reflecting a push for fiscal discipline and a more realistic, implementable financial plan.
The Annual Development Programme (ADP) will be reduced by Tk 35,000 crore to Tk 2,30,000 crore, while the revenue budget will increase to Tk 5,60,000 crore. The budget deficit is projected at Tk 2,26,000 crore — about 3.62 percent of the GDP — down from Tk 2,56,000 crore this fiscal year.
More than 57 percent of the revenue budget will be allocated to salaries, subsidies, incentives, and debt servicing. Allowances and salaries are expected to reach Tk 82,000 crore. Subsidy expenses may total Tk 1,16,000 crore, while interest payments could make up about 22 percent of the revenue budget.
The government plans to meet the deficit through foreign borrowing, bank loans, and sales of savings certificates. The GDP growth target for FY26 has been set at 5.5 percent, slightly higher than the current year's revised estimate of 5.25 percent. Inflation is expected to be brought down to 6.5 percent.
Key sectors like agriculture, health, education, and technology will receive priority in funding. Social safety net programmes will be expanded both in coverage and in the amount of allowances provided to vulnerable groups.
Revenue collection is projected to increase to Tk 5,18,000 crore, up from Tk 4,80,000 crore this year, with reforms focusing on increasing the tax-to-GDP ratio, streamlining VAT, and reducing compliance gaps for businesses.
Dr Salehuddin has described the budget as “practical and time-befitting,” noting that it avoids populist spending and does not include any new mega projects — except the ongoing Matarbari development initiative, which is being financed by long-term Japanese loans. No short-term or high-interest loans are being considered to avoid increasing the debt burden.
The government is also expected to introduce dearness allowances for government employees and provide funds to address capital shortfalls in state-owned banks. Subsidies for agriculture, fertilisers, and electricity will continue.
SMS/
