Finance Adviser Salehuddin Ahmed on Monday presented the national budget for FY2025–26, titled “Building an Equitable and Sustainable Economic System”, through a pre-recorded televised address on state-run BTV. This unconventional format became necessary due to the absence of the Jatiya Sangsad, following the political upheaval of July–August last year.
The proposed budget stands at Tk 7.90 lakh crore, slightly lower than the outgoing fiscal year’s Tk 7.97 lakh crore—marking the first time in Bangladesh’s history that the national budget has decreased year-over-year. It is the 55th budget overall but notably the first under the interim government formed after the ouster of former Prime Minister Sheikh Hasina.
This budget, shaped in the aftermath of a popular mass uprising and rooted in the principles of equity and non-discrimination, aims to ensure a better quality of life for all citizens. Its formulation involved consultation with economists and other stakeholders, reflecting both national sentiment and pragmatic economic considerations.
At 12.7% of GDP, the budget prioritizes curbing inflation, boosting employment, facilitating trade and investment, and expanding social safety nets. Central to its vision is the creation of a society built on the principles of Zero Poverty, Zero Unemployment, and Zero Carbon—a future where all citizens live decently and free from systemic discrimination. This aspiration also aligns with the goals inspired by the 2024 mass uprising.
We believe the proposed budget, if properly executed, can help reduce inflation, rationalise imports, cut unnecessary government expenditures, and improve both market efficiency and supply chain systems. The commitment to protecting local industries and the proposed reduction in import duties on LNG, crude oil, pharmaceutical raw materials, and medical equipment are commendable steps.
Strict measures will be required
to contain inflation and
maintain economic stability
Notably, increased allocations for social security programs will benefit the elderly, widows, persons with disabilities, the sick, and disadvantaged communities—supporting inclusive economic growth. However, strict measures will be required to contain inflation and maintain economic stability.
For the budget to succeed, transparency, accountability, and equitable fund distribution are essential. These factors are key to restoring macroeconomic stability, spurring growth, and reducing poverty.
The budget also acknowledges pressing challenges: persistent high inflation, stagnant investment, limited employment opportunities, and sluggish revenue collection. The Annual Development Programme (ADP) has been cut by 13.2% compared to FY2025, with reduced allocations in 13 of 15 sectors. Infrastructure—particularly transport and communication—has, however, received justified emphasis.
We welcome positive initiatives such as the automation of tax returns, VAT waivers on LNG imports, reductions in advance tax, and the proposed establishment of a central bonded warehouse. The allocation of Tk 100 crore for youth entrepreneurship is a promising step towards employment generation.
Nevertheless, achieving the ambitious revenue target remains a significant challenge. Success will require not only courage and foresight, but also a robust and realistic implementation plan. July 1 marks the beginning of the new fiscal year—and with it, the opportunity to embrace a new vision, renewed hope, and a more inclusive economic direction.
To deliver on its promises, the government must reinvigorate private investment, create jobs, rein in inflation, and stabilise prices of essential commodities. Effective execution of the budget is critical, especially in preventing corruption, curbing money laundering, and ensuring that the benefits of growth reach all segments of society.
The finance adviser explained that the interim government had to face the hard challenges of containing high inflation, rebuilding a weak economy, controlling the labour unrest and keep the industries running, fighting the unbridled corruption of the past regime and reviving the banking system from crisis. However, they have made encouraging progress in our efforts. But there are still challenges ahead in restoring the economy to normalcy. If these goals are pursued earnestly, the FY26 budget could indeed become a turning point—restoring economic momentum, improving lives, and laying the foundation for a fairer, more sustainable future.
