United News of Bangladesh

The government has allocated 40.05 percent of total social assistance to be distributed  through digital cash transfers in the proposed national budget for FY 2025-26, aiming to enhance transparency and efficiency in the sector. Social assistance remains the largest functional category within the broader social security framework, according to the budget papers. The government, according to a budget document, has made significant progress in modernising this segment through digital means, reflecting its commitment to poverty alleviation and human rights. According to the proposed budget, direct Government-to-Person (G2P) payments now account for 40.05 percent of all social protection interventions, up from 35.70 percent in FY 2023-24 and 34.48 percent in the ongoing FY 2024-25. Of the 30 cash-based programmes under social protection, 29 are currently covered by G2P systems. In total, Tk 47,597 crore has been allocated to 36 different programmes under social assistance, which constitutes 40.78 percent of the total social security budget of Tk 1,16,731 crore for FY 2025-26. Social security programmes get bigger allocations in national budget for FY26 The transition to digitised cash transfers—utilising Mobile Financial Services (MFS), Electronic Fund Transfers (EFT), and the National Payment Switch Bangladesh (NPSB)—has improved service delivery, minimized leakages, and reduced administrative costs. These reforms align with the National Social Security Strategy (NSSS), which advocates for robust delivery systems and better targeting. Digital initiatives such as the Dynamic Social Registry, part of the Social Protection Digital Transformation Project, are also supporting this transformation. The expansion of one-off cash grants and stipends further reflects Bangladesh’s efforts to build a responsive and adaptive social protection system. In FY 2025-26, one-off cash grants are set to increase to 19.24 percent from 17.96 percent in the current fiscal, while stipends will slightly decline to 10.64 percent from 11.92 percent. These cash-based programmes provide recipients with greater flexibility and dignity, allowing them to meet urgent needs such as healthcare, education, and nutrition. Although food assistance continues to play a critical role—rising to 11.01 percent of social assistance in FY 2025-26 from 6.40 percent in the current fiscal—the government’s gradual shift to cash transfers aligns with global best practices and the NSSS direction to phase out costly in-kind support. Meanwhile, the budget reflects a reduced emphasis on public workfare programmes, with allocations falling to 6.85 percent from 18.46 percent. This shift signals a focus on direct income support for vulnerable populations, including women, the elderly, and persons with disabilities. Bangladesh’s investments in digital infrastructure, fintech innovation, and partnerships with financial institutions are positioning the country as a regional leader in inclusive, technology-driven social protection. ICAB welcomes budget, but suggests lowering tax on online trading The continued growth of digital cash-based assistance highlights the government’s resolve to promote financial inclusion, empower women economically, and foster sustainable development. On June 2, Finance Adviser Salehuddin Ahmed placed a Taka 7,90,000 crore national budget for the fiscal year 2025–26, which is 12.7 percent of the GDP, through a pre-recorded televised video. This is the country's 54th budget and the first of Professor Dr Muhammad Yunus-led interim government.  Out of the total budget size, the operating cost and other expenditure have been estimated at Taka 5,60,000 crore while the Annual Development Programme (ADP) has been estimated at Taka 2,30,000 crore.  

The government has allocated Tk 1,16,731 crore for social security programmes in the proposed national budget for the fiscal year 2025-26, marking a significant increase and reaffirming its commitment to poverty alleviation and human rights. This allocation represents a 3.27-fold increase from the Tk 35,975 crore earmarked in FY 2015-16, and now accounts for 14.78 percent of the total national budget and 1.87 percent of GDP. According to the budget document, the government views social protection not only as a vital development priority but also as a tool for addressing poverty and vulnerability across the country. The social security allocation is distributed among 95 programmes, a sharp reduction from 140 in the previous fiscal year, due to efforts to streamline and consolidate initiatives for better efficiency. Among the various components, social assistance comprises the largest share—40.78 percent—spanning 36 different programmes accumulated Tk 47,597 crore. Budget 2025–26 market-friendly, say CPD, DSE and DBA   This is followed by: Social Insurance programmes of Tk 35,434 crore and three General Subsidies programmes with Tk 24,965 crore, with the 19 Labor Market Programmes of Tk 4171 crore, 15 social care service programmes with Tk 2327 crore, 17 Community Development programmes with Tk 2013 crore and three Technical Assistance programmes with Tk 223 crore. The budget document highlights that the increased allocation and restructuring reflect the government’s strategic shift toward a more integrated and policy-aligned social protection system. This year, the Finance Division has introduced key reforms, including the use of a unified Operational Code system under the Integrated Budget and Accounting System (iBAS++), enabling better expenditure tracking and reporting. For instance, previously fragmented programmes such as those for the welfare of Hijra, Bede, disadvantaged communities, and tea labourers—once spread across four Operational Codes—have now been merged into a single code. These reforms align with the recommendations of the National Social Security Strategy (NSSS), which calls for concentrating resources on a smaller number of priority schemes that address lifecycle risks more effectively. To further improve transparency and coordination, each ministry and division has been tasked with identifying and classifying their social security programmes using seven functional and nine lifecycle categories. Programmes are now categorized based on the type of intervention—cash, kind, food, or others. The comprehensive classification exercise is expected to enhance consistency, allow more accurate monitoring, and ensure policy coherence across ministries. It also distinguishes between core social security interventions and broader development projects, facilitating better planning and resource allocation. The government believes this consolidated approach will enable a more robust and responsive social protection system capable of delivering benefits more efficiently to those most in need.  

The proposed national budget for the 2025–26 fiscal year has allocated Tk 2,956 crore for the Election Commission (EC) Secretariat -- more than double the Tk 1,230 crore earmarked in the current fiscal year. Finance Adviser Dr Salehuddin Ahmed unveiled the Tk 790,000-crore budget on Monday through state-run Bangladesh Television (BTV) and Bangladesh Betar. Of the total allocation for the EC, Tk 2,727 crore has been designated for operating expenses, while Tk 229 crore will go towards development activities. Real estate route remains open in budget for legalising black money The operating budget marks a significant increase from the current allocation of Tk 793 crore, which was later revised to Tk 716 crore for the 2024–25 fiscal year. The sharp rise is widely believed to be aimed at covering the costs associated with the upcoming national election. Chief Adviser Prof Muhammad Yunus, during a recent visit to Japan, said the next national election will be held between December and June 2026. As such, the 12th parliamentary election is expected to be conducted during the 2025–26 fiscal year. Earlier, the EC had requested approximately Tk 2,800 crore to conduct the next general election and ensure law and order during the polls. The budget for the 12th general election, held on January 7, 2024, was Tk 2,276 crore, while Tk 700 crore was allocated for the 11th general election held on December 30, 2018.  

Finance Adviser Salehuddin Ahmed in the budget speech on Monday proposed complete withdrawal import duties on 110 products and lessening of import duties on 65 products ahead of trade talks with the US. “As part of preparations for trade dialogue with the United States, it has been proposed to completely withdraw import duties on 110 products and reduce import duties on 65 products,” said the Finance Adviser in his pre-recorded televised budget speech. Earlier, on April 30, Salehuddin said Bangladesh would engage in negotiations with the United States over retaliatory tariffs, emphasising that efforts would be made to avoid any actions that could escalate tensions. “There are 90 days to resolve the issue through discussions. If necessary, we will seek an extension,” he stated while addressing the 45th meeting of the budget consultative committee, organised by the National Board of Revenue (NBR) and the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) at a city hotel. Interim govt to rely more on bank loans to meet budget deficit According to NBR sources, around 2,500 products are imported annually from the United States. In 2024, Bangladesh imported products worth $2.62 billion from the United States, covering 2,515 items under the HS Code, according to NBR data.  

The interim government is set to unveil a Tk 790,000 crore national budget for the 2025–26 fiscal year on June 2, a defining moment for Bangladesh as it navigates mounting economic pressures and charts a course for stability and growth. This will be the first budget to be presented by the newly installed appointed administration, which faces the daunting task of curbing persistent inflation, reinvigorating private investment and strengthening social safety nets amid global and domestic uncertainties. Finance Adviser Dr Salehuddin Ahmed will deliver the budget speech in a pre-recorded broadcast scheduled for 4 pm on Bangladesh Television (BTV) and Bangladesh Betar. Private television channels and radio stations have been requested to air the speech simultaneously, using BTV’s official feed. In contrast to previous years, the proposed budget is Tk 7000 crore lower than the current fiscal year’s allocation of Tk 797,000. According to Finance Ministry officials, this reduction aligns with a strategy for fiscal consolidation, ensuring a more implementable and efficient financial plan. The projected budget deficit stands at Tk 226,000 crore, down from Tk 256,000 crore in the current fiscal year, representing 3.62% of the GDP. To bridge this gap, the government will depend on foreign borrowing, bank loans, and savings certificates. An ambitious GDP growth target of 5.5% has been set for FY26, slightly higher than the revised 5.25% for the current year. But, international financial institutions, including the World Bank, IMF and ADB, predict growth will remain below 5%. Inflation control remains a priority, with the government aiming to bring it down to 7%. However, economists warn that persistent inflationary pressures could pose risks to achieving this target. Japan to provide $1.063 billion for budget support, railways To alleviate the financial strain on lower-income groups, the budget includes an expansion of social safety net programs, increasing both beneficiary numbers and allowance amounts. Key sectors prioritised for funding include agriculture, health, education and technology. The Annual Development Programme (ADP) allocation is projected at Tk 230,000 crore, a reduction from Tk 265,000 crore in the current fiscal year, signifying a more focused investment approach. Dr Salehuddin Ahmed has assured that the upcoming budget will be business-friendly, introducing tax policies designed to enhance investment, GDP growth and job creation. The revenue collection target for FY26 is set at Tk 518,000 crore, up from Tk 480,000 crore in the current fiscal year. But, the IMF has recommended a more aggressive target of Tk 580,000 under its reform agenda. Non-development expenditures will rise, with major allocations earmarked for debt servicing, food subsidies, and banking sector reforms. The non-development budget is expected to reach Tk 560,000 crore, an increase of Tk 28,000 crore compared to the current fiscal year’s allocation. The government also plans to strengthen the banking sector with a dedicated allocation to cover the capital shortfall of state-owned banks. Besides, subsidies for agriculture, fertilizers, and electricity will continue to support key industries. As anticipation builds for the budget announcement, public sentiment is mixed—hopeful about stronger social safety nets and inflation control, yet wary of implementation challenges. Finance Adviser to unveil budget on June 2 Economists caution that without structural reforms and effective execution, the budget’s ambitious goals may be difficult to achieve. They advocate for enhanced wealth taxation and improved enforcement mechanisms to broaden direct taxation and minimize dependence on regressive indirect taxes. The budget presentation by Finance Adviser Dr Salehuddin Ahmed will be closely scrutinised, as it is expected to shape Bangladesh’s economic recovery and growth in the post-uprising political transition era.  

Finance Adviser Dr. Salehuddin Ahmed will present the national budget for the 2025–26 fiscal year on June 2. The pre-recorded budget speech will be aired at 4 pm on Bangladesh Television (BTV) and Bangladesh Betar, according to a press note. Peacekeeping in UN missions a constant challenge: Salehuddin All private television channels and radio stations have been requested to relay the speech simultaneously by taking the feed from BTV.

The Youth Forum Against Tobacco on Tuesday called on the government to increase taxes and prices of all tobacco products in the upcoming national budget for 2025–26 to protect public health and save lives. They organised a human chain in front of the National Press Club with the banner "To Protect Public Health: Demand for Effective Taxation and Price Increases on Tobacco Products in the 2025–26 Budget." The event saw participation from forum members as well as students from various universities. They said the easy availability and low prices of tobacco products are putting the nation's health at serious risk. Prioritise harm reduction in battling tobacco addiction: speakers They urged the government to take strong action by increasing tobacco prices and adopting stricter tobacco control policies. Nasrin Akter, Project Coordinator of Nari Maitree, was also present at the human chain.She said, “The current four-tier pricing structure for cigarettes (low, medium, high, and premium) has made the tobacco taxation and pricing measures ineffective. Particularly, the prices of low and medium-tier cigarettes are very close, allowing consumers to easily switch between tiers. If the low and medium tiers are merged and prices increased in the upcoming 2025–26 budget, it would discourage smoking among low-income groups and the youth.” She also highlighted specific proposals regarding tax and price increases in the upcoming budget. These proposals include: merging the low and medium tiers and setting the retail price of 10-stick cigarettes at Tk 90; keeping the high tier price unchanged at Tk 140; setting the premium tier price at Tk 190; and maintaining a 67% supplementary duty on the retail price of cigarettes, along with a 15% value-added tax (VAT) and a 1% health development surcharge. The human chain also called for setting the retail price of 25-stick non-filtered bidis at Tk 25, and 20-stick filtered bidis at Tk 20, with a 45% supplementary duty. Furthermore, it was proposed that the retail price for 10 grams of jorda be fixed at Tk 55 and for 10 grams of gul at Tk 30, with a 60% supplementary duty imposed. Besides,  a 15% VAT and a 1% health development surcharge should be retained on all tobacco products. Ashrafia Jannat, Convener of the Youth Forum Against Tobacco, said, “If these proposals are implemented, it could help prevent over 1.7 million premature deaths, including around 900,000 youth. At the same time, it could add over BDT 20,000 crore in extra revenue for the country.” The Youth Forum Against Tobacco hopes the government will take their message seriously and include effective tobacco tax measures in the upcoming budget to build a healthier and tobacco-free Bangladesh      

National Board of Revenue (NBR) Chairman Md Abdur Rahman Khan on Tuesday said in the upcoming national budget they will prioritise easing non-tariff barriers to facilitate business people. “We will try to ease the non-tariff barriers for you, we will remove all hurdles from your path,that is our main target, we are working on it,” he said at a pre-budget meeting held at the conference room of the Revenue Building in the capital. He said the primary goal of the budget for the next fiscal year will be creating a business-friendly environment for entrepreneurs. “The target is to enhance revenue collection, providing comfort to the business people through creating congenial atmosphere for them by pulling out all obstacles,” said the NBR chief. He pointed out the significant gap between the official tax rate and the effective rate in many cases, saying, “We will try to ease that.” Home Adviser says it’s people who support 5-year interim govt Abdur Rahman said that for the business entities that do not have any accounting system the NBR is planning to develop an app so that they could do their accounting properly. “They will preserve all sorts of records in that app which will ultimately help them to calculate their taxes including the VAT properly,” he said. The NBR chief said that the ultimate objective of this organisation is to increase revenue collection, widen the tax net and contain the revenue evasion, which is the main cause of revenue leakage. “We have to reduce our tax expenditure to zero,” he said. He said that those who are paying taxes in reduced rate and having tax exemption for a long time,  time has come for them to pay taxes in actual rates. “It is the time to keep aside the tax exemption culture, there will be some tax exemptions of course, but that will for the sake of encouraging new investments,” he said. Abdur Rahman also put emphasis on tariff rationalisation and said that it should be done. He said that there are some problems regarding tariff valuation and HS Code and the NBR will try to address these separately.    

Controlling inflation, implementing economic reforms and ensuring macroeconomic stability will be the biggest challenges for Bangladesh’s interim government in formulating the budget for the next fiscal year, according to experts. They said the interim government, led by Professor Muhammad Yunus, faces a series of formidable economic challenges as it prepares the national budget for the 2025-26 fiscal year as the nation is grappling with high inflation, dwindling foreign exchange reserves, a burgeoning external debt and an unstable foreign exchange market. Next budget to see cuts in tax waiver: NBR Chairman The main challenges for the interim government in the next fiscal year will include implementing effective fiscal and monetary measures to bring inflation down to the target of 6.5%, introducing structural reforms to enhance revenue collection, curbing corruption and improving public sector efficiency. Besides, formulating policies to address economic challenges following Bangladesh’s graduation from Least Developed Country (LDC) status will be crucial. Ensuring stability through prudent fiscal management, debt control, and fostering a congenial environment for investment and growth will also be among the top priorities. Economist and Dhaka University Professor Rashed Al Mahmud Titumir said the interim government should declare a revised budget just after assuming power as it inherited a precarious fiscal balance. “They had inherited a precarious economy which was on the cliff,” he said. NBR invites budget proposals for FY 2025–2026 Prof Titumir said the previous government’s debt was mounting, as it continued borrowing new loans to repay old ones.  “They (interim govt) have inherited such an economy where there is outflow, but no inflow, the economy was stagnant -- they have inherited a crisis of income and expenditure,” he said. Due to inflation, Titumir said, consumption had decreased and wages shrunk, leading to a rising trend of poverty even before they came to power. He said that there was no social security, while social protection remained fragmented and plagued by inclusion and exclusion errors. The government failed to address this issue due to the absence of a robust fiscal policy to drive economic growth. The Dhaka University teacher said that enterprises were reluctant to invest due to the ongoing liquidity crisis, which has consequently led to a rise in unemployment.  “As a result, a huge number of the youth population was supposed to be there for absorption in the job market, but they became precariat class,” he said. Talking about the challenges for the next budget, Titumir, a professor at the Department of Development Studies, pointed out that revenue generation will be a challenge for the government while formulating the budget for the next fiscal. Titumir said the government has to go for a good debt management which will take time, for this it should go for a common minimum reform programme. There should be a quick election for an elected government so that confidence may grow among the people of the country which will lead to the predictability of economic activity and stability, he said. He stressed for creating depthness in the social protection system as the inflation prolonged in the country. Rashed Al Mahmud Titumir, who is also the Chairperson of think tank Unnayan Onneshan, said that the government should go for a performance based subsidy programme shunning the pick and choose one. He slammed the government for not scrapping the capacity charge system in the power sector. “Subsidies in the energy, power and road sector were visible,” he added. Prof Titumir said that the government should provide a roadmap for the enterprises which are refraining from making new investments currently. “The government has to show that it has brought discipline in every sector, we are not seeing any discipline in the capacity charge system or other agreements that have done previously.” He also stressed the importance of bringing harmonisation of the fiscal and monetary policy which is still absent. Talking to UNB, former National Board of Revenue (NBR) chairman and a member of the advisory committee to initiate reforms in the NBR, Muhammad Abdul Mazid said that there is an uncertain time in the coming days. “New government will come, but this interim government will stay in power for how long, there will be a surface level budget which will be automatically small one,” he said. There should be no mega projects in the next budget, he said, adding: “The next budget will emphasise the rebuilding of the economy, subsidy, social-safety net programmes and containing the inflation.” Talking about the deplorable condition in the banking sector, Mazid, chairman of the Social Development Foundation (SDF), said that the bleeding in the banking sector has stopped. “It is now in the recovery sector, if some of the siphoned money can be brought back it would be very good, the challenge will be in the reconciliation of the banking sector with the depositors,” he said. He also criticised the previous Awami League government for granting immunity in the power sector, a policy that continues to this day as there is no viable exit strategy midway. Currently, controlling inflation is the primary focus for the upcoming budget. Over the past two and a half years, overall inflation in Bangladesh has consistently surpassed 9%, with food inflation reaching double digits. In December 2024, inflation surged to 11.38%, marking a four-month high. The interim government aims to reduce the average inflation rate to 6.5% in the next fiscal year. To achieve this, the government plans to implement cost-saving measures in public spending, coordinate with a contractionary monetary policy, and proceed with caution in project implementation. These efforts are designed to restore macroeconomic stability and ease the financial burden on citizens. Revenue collection has fallen short, with a gap of approximately Tk 38,000 crore against the revised target of Tk 4,10,000 crore for fiscal year 2024. The banking sector is grappling with significant challenges, particularly a high volume of non-performing loans (NPLs). Political transitions have resulted in leadership vacuums within the central bank, further destabilising the sector. Liquidity shortages are acute, with banks struggling to secure funds even in the call money market. The interim government is prioritising reforms to address these vulnerabilities, focusing on enhancing transparency, improving governance, and restoring confidence in the financial system. A major concern is the $500 million debt owed to India’s Adani Group for electricity supplied from its 1,600 MW coal plant. This liability, inherited from agreements made under the previous administration, is a substantial financial burden. The interim government is reassessing such energy deals, aiming to renegotiate terms to ease fiscal pressures. Plans include reintroducing competitive bidding and implementing regulatory reforms to ensure transparency and cost-effectiveness in future energy agreements.  

The country's education sector is likely to get a significant boost in budgetary allocation in the upcoming 2025-26 fiscal year, aiming to enhance the quality of education and align it with international standards. Planning and Education Adviser Dr. Wahiduddin Mahmud has emphasised increasing the allocation for education, said sources at the Planning Commission. “He has given specific directives to prioritise increased budgetary allocations for education,” a senior Planning Commission official told UNB. The official said the upcoming allocation would represent a substantial proportional increase but the focus will not be limited to infrastructure. More emphasis will be given on procuring educational tools, scientific equipment, and research materials, he said. Speaking at a recent Executive Committee of the National Economic Council (Ecnec) briefing, Dr. Wahiduddin Mahmud said that the interim government is committed to enhancing education sector budget. Govt prioritises timely textbook distribution: Education Adviser “We think we will allocate a higher budget for education by the end of the fiscal year,” he said during the briefing. Dr. Wahiduddin, one of the country’s leading economists, had earlier highlighted the importance of human resource development alongside infrastructure investment. “Infrastructure without skilled human resources is merely a skeleton,” he said at a lecture organised by the Economic Reporters’ Forum in Dhaka. He warned that inadequate human resource development could trap the country in the lower-middle-income bracket. The ousted Awami League government allocated Tk 94,710 crore to the education sector in the 2023-24 fiscal year, a 7.42% increase from the previous year. Govt to form education commission soon: CA’s spl assistant Aminul The budget included Tk 38,819 crore for primary and mass education, up from Tk 34,722 crore in FY2023-24, Tk 44,108 crore for secondary and higher education against Tk 42,839 crore in the previous fiscal year. Besides, Tk 11,783 crore was allocated for the Technical and Madrasa Education, an increase from Tk 10,602 crore. However, as a percentage of GDP, education sector allocation has decreased to 1.69% from 1.76% in the previous fiscal year. This is the lowest allocation in 16 years and far below UNESCO’s recommended 4–6%. Annual Development Programme (ADP) for FY2024-25, approved by the National Economic Council (NEC), education ranked third among the top 10 sectors, receiving Tk 31,529 crore (11.36% of the total ADP outlay of Tk 265,000 crore). The transport and communication sector topped the ADP allocation with Tk 70,687.75 crore (26.67%), followed by power and energy with Tk 40,752 crore (15.38%). Investment in education must be increased to overhaul the system: Dr Salimullah Khan According to the latest World Bank data, Bhutan topped the region in 2022 by allocating 8.14% of its GDP to education. It was followed by the Maldives with 4.58%, Nepal with 3.65%, and Pakistan with 1.97%. India, in 2021, dedicated 4.64% of its GDP to education, while Afghanistan allocated 4.34% in 2017. In contrast, Sri Lanka allocated only 1.20% of its GDP to education in 2022.