United News of Bangladesh

National Board of Revenue (NBR) Chairman Md. Abdur Rahman Khan on Sunday said that unprecedented steps have been taken in the proposed budget for fiscal year FY2026-27 to create a deregulated environment for businesses. "For a long time, export-oriented businesses have been demanding the expansion of bonded warehouse facilities. Previously, those who did not own a bonded warehouse faced numerous complications in collecting raw materials from bond-facilitated institutions. The new budget has eliminated these limitations," the NBR chief said. He made the remarks as the chief guest while addressing a seminar titled "Analysis of Finance Bill 2026-27" at the Economic Reporters' Forum (ERF) auditorium in the capital on Sunday afternoon. The NBR Chairman explained that apparel exporters with bonded warehouses can now smoothly sell raw materials to other exporters who lack such facilities. "This decision will immensely benefit the country's backward linkage industries and enhance the capability of local industries," he added. He further noted that the previous continuous bond facility was restricted, requiring approval from the commissionerate to import raw materials for another institution. This facility has now been expanded to the inter-commissionerate level. Furthermore, bond licenses will now be accessible to entrepreneurs across any sector upon application, moving away from the previous practice where only a few selected sectors enjoyed the privilege. For businesses that do not wish to take a bond license but are interested in duty-free imports, the NBR has introduced a new option allowing them to import duty-free raw materials against bank guarantees, the Chairman announced. Highlighting reforms in the Authorized Economic Operator (AEO) facility, which allows businesses fast-track customs clearance without regular physical inspections at ports, the NBR chief said that the mandatory requirement of submitting audit reports has been relaxed. This relaxation aims to encourage more businesses to apply, as audit reports are often delayed outside the taxpayers' control. The NBR Chairman also disclosed a major revenue-protection initiative, stating that the revenue board will introduce QR codes on cigarette packets to verify tax compliance. He revealed that around 15 percent of cigarettes in the market currently go untaxed due to false manufacturing or import declarations. "Once the QR codes are implemented on cigarette packets, the scope for tax evasion will be eliminated, enabling the state to realize an additional Tk 2,000 crore in revenue," Dr. Khan stated. The seminar was presided over by ERF President Doulat Akhter and moderated by the organization's General Secretary Abul Kashem. NBR Second Secretary (VAT) Badruzzaman Munshi and First Secretary (Customs Policy) Tareq Hassan, among other high officials, were also present at the event.

The American Chamber of Commerce in Bangladesh (AmCham) welcomed the Government’s proposed national budget for FY2026–27, noting its balanced focus on macroeconomic stabilisation, social protection, and long-term growth. With a total outlay of Tk. 938,000 crore, the budget targets 7.5% inflation and 6.5% GDP growth, reflecting a pragmatic approach amid ongoing global and domestic economic challenges. AmCham acknowledges the Government’s efforts to maintain fiscal discipline while prioritising human capital development, investment promotion, and support for vulnerable groups. AmCham observes that the proposed fiscal deficit of 3.55% of GDP is broadly prudent. However, reliance on domestic borrowing to finance the deficit may constrain private sector credit and increase borrowing costs. Continued coordination between fiscal and monetary policies will be essential to sustain macroeconomic stability and support private sector-led growth. On revenue mobilisation, AmCham notes the ambitious target of Tk. 6.95 lakh crore and emphasises the importance of comprehensive tax administration reform. The Chamber welcomes ongoing initiatives to enhance digitalisation, strengthen compliance, and improve transparency, which are critical to broadening the tax base and reducing reliance on borrowing. In this context, AmCham encourages revisiting revenue governance reforms, including the potential separation of tax policy and administration functions, to strengthen institutional effectiveness. AmCham commends the increased allocations toward education, healthcare, and social safety net programmes, including Tk. 1.45 lakh crore for social protection. The Chamber underscores the need to complement these allocations with improvements in quality, governance, and service delivery outcomes, particularly in education and healthcare. The expansion of the Annual Development Programme to Tk. 3 lakh crore is a positive step toward strengthening infrastructure and connectivity. However, AmCham highlights the importance of addressing project implementation challenges, including delays and cost overruns, through better project readiness, rigorous evaluation, and performance-based monitoring. The Chamber also welcomes measures aimed at supporting export competitiveness and trade facilitation, including reductions in certain import and export-related taxes. As Bangladesh prepares for LDC graduation, AmCham emphasises the need for structural reforms, policy predictability, and alignment with post-LDC obligations to ensure sustained competitiveness. On energy, AmCham appreciates the Government’s focus on renewable energy and sustainable growth, including incentives for solar power and electric vehicles. At the same time, it stresses the importance of ensuring reliable and affordable energy supply through continued investment in domestic resource development and infrastructure efficiency. Looking ahead, AmCham believes that while the FY2026–27 budget provides a strong foundation for economic resilience and growth, its success will depend on effective implementation, policy consistency, and strengthened public–private collaboration. AmCham Bangladesh remains committed to working alongside the Government and stakeholders to support reforms that enhance competitiveness, attract investment, and drive sustainable economic growth.

Finance Minister Amir Khosru Mahmud Chowdhury on Thursday proposed an allocation of Tk2,586 crore for the Ministry of Youth and Sports in the national budget for the 2026-27 fiscal. The proposed allocation is Tk782 crore higher than the revised allocation for FY2025-26, reflecting the government's emphasis on youth development and employment generation. Presenting the budget in Parliament, the finance minister said the Ministry of Youth and Sports has undertaken a number of initiatives aimed at creating employment opportunities for young people. These include training programmes in freelancing, mobile phone servicing, caregiving and foreign language skills to help equip youths with market-oriented competencies and improve their employment prospects at home and abroad. Earlier in the day, Finance Minister Amir Khosru Mahmud Chowdhury placed the budget for the 2026-27 fiscal with a call for national unity, inclusive development, and continued reform-driven progress, emphasising the collective role of citizens from all walks of life in building a prosperous Bangladesh. This is the first budget of the BNP government after winning the February 2026 election. Amir Khosru Mahmud Chowdhury as the Finance Minister delivered his maiden budget speech under the theme ‘Journey Towards a Democratic, Humane and Inclusive Economy’.

Finance Minister Amir Khosru Mahmud Chowdhury on Thursday placed the budget for the 2026-27 fiscal with a call for national unity, inclusive development, and continued reform-driven progress, emphasising the collective role of citizens from all walks of life in building a prosperous Bangladesh. This is the first budget of the BNP government after winning the February 2026 election. Amir Khosru Mahmud Chowdhury as the Finance Minister delivered his maiden budget speech under the theme ‘Journey Towards a Democratic, Humane and Inclusive Economy’. In the course of his nearly 4-hour budget speech, Amir Khosru, dressed in a dark grey suit paired with dark blue tie, repeatedly urged lawmakers and citizens including farmers, workers, students, women, youth, and expatriates to strengthen cooperation in achieving the country’s development aspirations. The finance minister took just two short breaks - that too for the Asr and Maghrib prayers.  He disclosed the government's vision to reduce inflation to 7.5 percent and raise GDP growth to 6.5 percent in the coming fiscal (2026-27). For this, Khosru said he wants to rely on inclusive development, quality education and healthcare for all, universal social protection, an economy driven by investment, employment, and production. He said he wants to step up deregulation and present a cost-effective, simplified business environment, financial sector stability, energy security, digital transformation and ICT development, management of life, nature, environment, and water resources and transparent, efficient, and accountable institutions and administrative systems. The address highlighted that Bangladesh’s progress depends on the sustained implementation of electoral commitments, bold reform initiatives, and a united national effort. “We firmly believe that through continued implementation of our electoral commitments, bold reform initiatives, and a united national effort, Bangladesh will advance steadily toward its development aspirations,” the Finance Minister said. He said that it underscored the vision of building a society where equal opportunities are accessible to all, enterprise and innovation are encouraged, and the rewards of hard work are ensured, with the benefits of economic growth shared broadly among citizens. “Our commitment is to build a Bangladesh where equal opportunities are available to all… through economic democratisation, deregulation, and the empowerment of the people, we shall build a prosperous and confident Bangladesh, InshaAllah,” he added. Highlighting the importance of human capital, he said the strength, creativity, and entrepreneurial spirit of people remain the nation’s greatest asset. The proposed national budget for the 2026–27 fiscal year has been framed with a strong emphasis on economic stability, investment, production, employment generation and building a more equitable society. The government has set out an ambitious long-term vision of transforming the economy into a USD 1 trillion economy by 2034 through sustained and stable economic growth, driven by what it describes as “economic democratisation”, aimed at ensuring financial recovery and welfare for all citizens. The budget claims to prioritise a shift away from debt-dependent growth towards a production- and private investment-led economic model. In the medium term, efforts will be made to increase revenue collection, maintain budget deficits at sustainable levels, and restore discipline in debt management, with the aim of improving the country’s credit rating from moderate to low risk. The budget deficit has been targeted at 3.6 percent of GDP, which will help keep borrowing risks at a manageable level.To encourage private sector investment, government borrowing from the banking sector will be gradually reduced. At the same time, the government planned to diversify and strengthen the bond market through the introduction and expansion of corporate bonds and municipal bonds, thereby easing pressure on the banking system. For the 2026–27 fiscal year, total revenue collection has been projected at Tk 6,95,000 crore, equivalent to 10.2 percent of GDP. Of this, Tk 6,04,000 crore is expected to come from the National Board of Revenue (NBR), i.e. tax collection. The tax-to-GDP ratio fell below 7 percent in FY2024–25, and the government said efforts will be made to significantly increase it in the coming years. The total outlay proposed, or budget size, clocks a hefty Tk 9,38,000 crore, covering both operational and development spending - signaling a return to the expansionary fiscal policy that characterised much of the deposed Awami League government's tenure from 2009-24.  The interim government led by Dr Muhammad Yunus bucked that trend, as Finance Adviser Dr. Salehuddin Ahmed unveiled a Tk 7,90,000 crore national budget for the 2025–26 fiscal, marking a rare contraction of about 1% from the previous year's outlay. If Khosru's proposed budget is passed without any major changes, it would mark an 18% jump over the current year's budget. One of the most significant points of departure between the two is the return to a much larger Annual Development Programme. Operational expenditure includes subsidies, interest payments on public debt, procurement of capital equipment, food accounts, and administrative costs including advances to employees and state-owned enterprises. The development budget, which is mainly made up of the ADP but includes some non-ADP schemes as well, stands at Tk 3,16,075 crore - nearly a third of the total outlay.  Priority has been given to investment-led and sustainable development initiatives. In line with the party's promises on the campaign trail, the allocations for education and health have been significantly ramped up with a view to improve human capital development. Education sector has been allocated around 2 percent of GDP, amounting to Tk 1,36,606 crore, compared to Tk 87,206 crore in the current fiscal year (1.39 percent of GDP). The allocation spans multiple ministries beyond education including technical and vocational institutions under different sectors such as textiles, railways, defence, agriculture, fisheries, and ICT. Similarly, the health sector's allocation has been increased to Tk 69,409 crore, equivalent to 1.01 percent of GDP, up from 0.58 percent in the current fiscal year. The allocation includes spending by various ministries and agencies, including local government bodies, the Islamic Foundation, police-run hospitals, and social welfare institutions. The government has indicated a plan to gradually raise combined education and health spending to 5 percent of GDP in the future.

Finance Minister Amir Khosru Mahmud Chowdhury on Thursday said prolonged instability in the Middle East may adversely affect employment opportunities abroad, income flows, and the continuity of remittance inflows. If this trend persists, the Finance Minister said it may emerge as a matter of serious concern for the external sector and labour market stability. He said although remittance receipts have not yet shown any negative impact, early signs of pressure are being observed in manpower deployment. For instance, he said, while around 95,000 workers departed for overseas employment in January 2026, this number declined to around 44,000 in March. Unveiling the national budget for the fiscal year 2026-27 in Parliament, the Finance Minister said the Middle East remains the most significant destination for Bangladesh’s migrant workforce. He said the reality of today’s global economy is that uncertainty is no longer an exception; rather, it has become a permanent feature of economic management, a ‘Neo-Normal’. War, volatility in energy markets, fluctuations in global interest rates, changes in trade policies, and disruptions in supply chains - any one of these can quickly place significant pressure on an import-dependent economy such as ours, he said. In this context, the Finance Minister said their objective is to manage the economy in such a way that minimizes the impact of external shocks on domestic macroeconomic stability, ensuring resilience and continuity in growth and development.

Students seeking higher education abroad will be eligible for easy loans of up to Tk 10 lakh under a new government programme, Finance Minister Amir Khosru Mahmud Chowdhury said while placing the proposed national budget for FY2026-27 on Thursday. Unveiling the proposed budget in Parliament, the finance minister said plans are underway to introduce a mandatory third language, such as Japanese, Korean, Mandarin, Arabic, French or German, into the curriculum alongside Bangla and English. “To support third-language learning and facilitate higher education abroad, the government has already introduced a loan facility of Tk 10 lakh for students wishing to pursue higher studies overseas,” he said. The initiative aims to expand opportunities for higher education abroad and help talented students overcome financial barriers. The government plans to keep interest rates comparatively low and allow repayment after graduates enter the job market, he said. The finance minister also said the government would ensure access to the scheme without administrative hassles. The proposed budget allocates Tk 136,606 crore for education and human resource development, a significant increase from the current allocation of Tk 87,206 crore, which accounted for 1.39 percent of GDP. According to the finance minister, the government plans to raise spending on education to 5 percent of GDP by 2030, viewing the investment as a strategic step toward building a skilled workforce and a knowledge-based economy. Amir Khosru said the government considers overseas education not as "brain drain" but as "brain circulation" that can contribute to remittance growth and the development of skilled human resources in the future.

The government has proposed raising the tax-free income ceiling for individual taxpayers to Tk 3.75 lakh in the national budget for fiscal year 2026-27, up from the existing threshold of Tk 3.5 lakh. Finance Minister Amir Khosru Mahmud Chowdhury made the proposal while unveiling the budget in Parliament on Thursday, affirming that the revised limit will remain in effect for the next two consecutive fiscal years, extending through FY2027-28. The adjustment builds upon the previous decision by the former interim government's finance adviser Dr Salehuddin Ahmed, who had initially increased the ceiling. The newly elected government has decided to maintain and advance this trajectory, a move analysts believe will provide much-needed breathing room for low-income and middle-class families hit hard by inflation. Special Categorised Exemptions Expanded: Following past conventions, the proposed budget offers higher tax-free thresholds for several specific categories of taxpayers. The threshold for women and senior citizens (65+) has been fixed at Tk 4.25 lakh, third gender and physically challenged taxpayers at Tk 5 lakh, gazetted freedom fighters and injured July uprising warriors Tk 5.25 lakh, and parents/legal guardians of persons with disabilities an additional Tk 50,000 exemption per child or dependent over their applicable personal threshold. Currently, Bangladesh has approximately 1.28 crore Taxpayer Identification Number (TIN) holders, out of whom only 40 lakh to 42 lakh individuals file income tax returns annually. New Tax Slabs: 5% Rate Abolished In a significant structural overhaul, the government has eliminated the lowest 5 percent tax bracket entirely, a move that may increase the tax burden on mid-to-high-income earners. Under the new layout, once the initial Tk 3.75 lakh tax-free buffer is crossed, the remaining income will be taxed under the following reconfigured slabs: Next Tk 3 Lakh: 10 percent Next Tk 4 Lakh: 15 percent Next Tk 5 Lakh: 20 percent Next Tk 20 Lakh: 25 percent Remaining Income: 30 percent Starting from the upcoming fiscal year, taxpayers will be allowed to submit their income tax returns throughout the entire year, moving away from rigid deadlines. However, the system introduces a tiered reward-and-penalty mechanism based on timing: Submission Period | Fiscal Benefit / Penalty: First Quarter (July-September)- Rebate: 5 percent of payable tax or Tk 25,000 (whichever is less). Second Quarter (October-December)-Standard: Regular tax applies; no incentives or penalties. Third Quarter (January-March) Penalty: Additional 2 percent of payable tax or Tk 3,000 (whichever is higher). Fourth Quarter (April-June) Penalty: Additional 5 percent of payable tax or Tk 5,000 (whichever is higher). | Erosion of Real Income and Persistent Inflation: The tax-exempt ceiling was last raised from Tk 3 lakh to Tk 3.5 lakh in the 2023 budget. Over the subsequent three years, the threshold remained stagnant despite persistent economic headwinds. Bangladesh has experienced a gruelling average inflation rate of around 10 percent annually over this period. According to the latest data from the Bangladesh Bureau of Statistics (BBS), inflation in May hit 9.42 percent, marking a 16-month high. Economists point out that this prolonged inflationary pressure has severely diminished the real purchasing power of citizens, leaving those sitting just above the tax-free line struggling to balance escalating living costs with their statutory tax obligations.

Finance Minister Amir Khosru Mahmud Chowdhury on Thursday unveiled sweeping tax, VAT and duty relief measures in the Tk 9,38,000 crore national budget for fiscal year 2026-27, targeting everything from daily staples and life-saving medicines to electric vehicles and semiconductors, in what the government described as a pro-people, investment-driven overhaul of the country's fiscal architecture. Presenting the budget in the Jatiya Sangsad, the minister said the reliefs were aimed at reducing the burden on ordinary citizens still reeling from years of high inflation, while simultaneously creating an environment conducive to private investment and employment generation. In the most sweeping consumer-facing measure, the government proposed reducing withholding (source) tax on 60 essential commodities, including rice, wheat, potatoes, onions, garlic, ginger, salt, sugar, edible oil, pulses, poultry, fish and dairy, from existing rates of 5%, 2% or 1% down to a flat 0.5%. The minister said unrelenting price hikes of basic goods in recent years had caused severe hardship and that the new government's electoral pledge demanded decisive action. He also proposed full withdrawal of the 5% regulatory duty on all types of spices and on date imports, which are widely consumed across the country. Healthcare For kidney patients, the budget proposes a complete waiver of the existing 15% VAT and 5% advance income tax on dialysis filters, which the government said would reduce the cost of each dialysis session by approximately Tk 800. Similarly, the 7.5% advance tax on blood tubing sets used in haemodialysis has been fully withdrawn. For cardiac and ophthalmic patients, the 10% VAT applied at the supplier level on imported heart rings or stents and intraocular lenses has been removed, a measure expected to reduce the price of each stent by around Tk 20,000 and each intraocular lens by approximately Tk 5,000. All taxes: customs duty, regulatory duty, supplementary duty and advance tax were proposed to be fully waived on 21 categories of special assistive devices for persons with disabilities, including mobility aids. The minister said the measure would improve quality of life and reduce financial burden on families. Import duty on mortuary chambers was proposed to be reduced sharply from 25% to 1%. Electric Vehicles In what the minister framed as a landmark push for environment-friendly transport, the budget proposed dramatically reducing the total tax incidence on imported electric vehicles (EVs). The aggregate tax burden on EVs currently at 93% is proposed to be cut to 64% for vehicles valued up to $25,000 and to 80% for those valued up to $50,000. All duties and taxes on imported EV chargers and charging stations were proposed to be fully withdrawn. For locally manufactured EVs, including four-wheelers, three-wheelers, electric buses and trucks, raw material and component imports would attract only a 3% customs duty, with all other levies waived through FY2030-31. Advance income tax on EV registration was also slashed dramatically, from a flat Tk 2 lakh to a tiered structure based on power capacity: Tk 25,000 for up to 200 KW, Tk 50,000 for up to 300 KW, Tk 75,000 for up to 400 KW, and Tk 1 lakh beyond that. Electric buses and trucks used for transporting students in educational institutions were proposed to be fully exempt from all duties and taxes until June 30, 2030. To incentivise solar power, a zero-tax rate was proposed for the solar electricity sector until 2035, with a 5% tax rebate for consumers paying solar power bills. Pharmaceuticals The budget proposed full withdrawal of import duties on 51 new raw materials used in manufacturing Active Pharmaceutical Ingredients (APIs), with the list expanded significantly to deepen Bangladesh's pharmaceutical self-sufficiency. A further 17 new basic raw materials for the pharmaceutical industry were added to the concessionary duty list at zero percent, to sustain the country's growing export performance in global medicine markets. Nine additional inputs used in manufacturing cancer drugs were included in the existing concessionary scheme under zero customs and VAT, aimed at making anti-cancer medicines more affordable domestically. The government also proposed continued tax support for the pharmaceutical sector as Bangladesh graduates from Least Developed Country (LDC) status, acknowledging competitive pressure in international markets. Technology In a major push to digitise the economy and make computing accessible, the budget proposed complete removal of all customs duty, regulatory duty, supplementary duty and VAT on laptops, desktop computers, servers, computer printers and computer monitors. SSD drives would have all levies waived except a 5% customs duty. Advance income tax on computer monitors, portable automatic data processing machines, flash memory and computer printers was proposed to be reduced from 5% to 2%. The government said these measures were intended to expand IT-sector employment and fulfil its commitment of raising the ICT sector's share of GDP to 10% within the next five years. The Tk 300 per SIM card tax, in force for years, was proposed to be fully scrapped, with the government estimating a Tk 1,200 crore revenue impact but noting that the existing roughly 50% effective tax rate on the telecom sector was far above global norms and was constraining digital inclusion. Mobile network service withholding tax was also cut from 12% to 10%. To attract investment into the high-value semiconductor design, testing and packaging sector, the budget proposed that all imports used in this industry be subjected to no more than 1% customs duty, with regulatory duty, supplementary duty, VAT and advance tax fully waived through June 30, 2031. Small and Medium Enterprises For small and medium enterprises, the budget proposed a complete turnover tax exemption on turnovers up to Tk 50 lakh, with the ceiling raised to Tk 70 lakh for women and persons with disabilities. All content creation income, from freelancing, digital content, and creative work, was proposed to be made fully VAT-exempt. Startup companies would also receive full 15% VAT exemption on their local services, imported services and premises rent until June 30, 2035. Turnover tax was proposed to be set at zero for startups, innovative ventures and technology-based businesses. Agriculture VAT at the trader level on all types of fertilisers used in agriculture was proposed to be fully waived. The 7.5% advance tax on pesticide imports at the import stage was also withdrawn entirely. Customs duty on zinc ash, the primary raw material for zinc sulphate fertiliser production was proposed to be reduced to zero, to enable local self-sufficiency in micronutrient fertiliser manufacturing. For poultry, dairy and fisheries feed manufacturers, three additional raw materials were added to the zero-rate concessionary list. Equipment and machinery for the poultry sector would also enjoy zero import duty on components. Import duty on infant food preparation materials was cut from 15% to 10%, with the government saying the move would make baby food more affordable for ordinary families. The concessionary duty regime for the shipbuilding and dredger industry was extended to June 30, 2030, to keep Bangladesh competitive in global maritime markets. Concessionary duty facilities on lithium-ion battery manufacturing, sodium-ion battery production and battery pack assembly were extended through FY2029-30. EV battery components and mounting brackets were included in the concessionary scheme until June 2028. To support the country's creative industries, the budget proposed removing the 5% regulatory duty on musical instruments including guitars, pianos and violins. Import duty on cinematographic cameras was cut from 15% to 5%, with all levies removed on camera and projector components to enable the production of internationally competitive films and content. Tobacco: Higher Prices The budget raised the minimum retail prices of cigarettes across all four tiers, to Tk 62, Tk 92, Tk 160 and Tk 210 per packet of 10 sticks respectively, with corresponding supplementary duty adjustments. New products including Nicotine Pouches (minimum retail price Tk 500 per 10 grams, 40% supplementary duty) and Heated Tobacco (Tk 210 per 10 sticks, 67% supplementary duty) were brought under a new tax regime. A Track and Trace system was proposed to monitor production and supply and curb illicit trade. Income Tax Relief The tax-free income threshold for individual taxpayers was raised from the existing Tk 3,50,000 to Tk 3,75,000 for FY2026-27 and FY2027-28, with a further step to Tk 4,00,000 in FY2028-29, and Tk 4,50,000 in FY2030-31. For women and senior citizens above 65, the ceiling would be higher still, reaching Tk 5,00,000 by FY2030-31. The minister also announced that a new progressive five-year income tax rate roadmap was being published to allow taxpayers to plan their finances with greater predictability. The minister said the cumulative effect of these reliefs would reduce production costs, lower consumer prices, attract fresh investment, and create new avenues of employment, particularly for young Bangladeshis. "Our tax policy is not merely a tool of revenue collection," Khosru said. "It is also an instrument of food security, energy security and environmental protection and above all, an expression of this government's commitment to a democratic, humane and inclusive economy."

Finance and Planning Minister Amir Khosru Mahmud Chowdhury on Wednesday said the national budget for fiscal year 2026-27 (FY27) will be placed in the Jatiya Sangsad on June 11, with a focus on the welfare of all citizens as the country navigates a fragile economic situation inherited from previous administrations. “Insha Allah, this budget will be placed on June 11. It is being prepared considering every citizen of Bangladesh,” Khosru told reporters at the Bangladesh Secretariat. “We are passing through a difficult period. We inherited a fragile economy, but despite that, we are trying our best. This budget is being formulated keeping in mind every citizen of the country,” he said. The minister said the government assumed office amid a challenging economic environment marked by a heavy debt burden, rising poverty and declining investment. “Despite these challenges, we have taken responsibility and are working to deliver a budget that reflects the interests of all citizens,” he said. Khosru said the government aims to ensure broader participation in economic activities so that the benefits of growth reach all segments of society. “Hopefully, this budget will mark a good beginning as we work to recover from a fragile economic situation. Although the process will take time, the start will be positive and we will gradually move towards improvement,” he said. The finance minister said the government is seeking to steer the economy towards an investment-led growth model, moving away from what he described as previous practices of excessive money printing and heavy borrowing from the banking sector. He said efforts are underway to restore sound public financial management and prevent the country from falling into a debt trap, noting that a significant portion of the national budget is currently being spent on servicing loan interest payments. “We are trying our best to reduce our dependence on loans and increase our reliance on investment. Gradually, we will have to reduce operating costs while encouraging greater investment,” he said. Khosru said the government has been working relentlessly since assuming office to correct distortions in the economy and restore macroeconomic stability, with a view to bringing discipline to the financial sector. “These efforts will ultimately protect the interests of the people of Bangladesh and help us realise our dream of becoming a trillion-dollar economy,” he added.

Economists and sector experts have urged the government to prioritize the agriculture sector in the upcoming national budget for the fiscal year FY2026-27, warning that the continued decline in budgetary allocation could jeopardize long-term food security and inflation control. The call comes ahead of the national budget announcement scheduled for June 11, with a projected outlay of nearly Tk 9.38 lakh crore. Despite being a key economic driver that ensures food security, generates 40 percent of total employment, and keeps the rural economy functional, agriculture's share in the national budget has been under 10 percent for the last 14 consecutive fiscal years. In the ongoing FY 2025-26, the allocation plummeted to a record low of just 5.9 percent, according to an official document. Expressing deep concern over this trend, the Bangladesh Agricultural Economists Association has demanded an allocation of at least 9.5 percent of the upcoming budget for agriculture, which would amount to roughly Tk 88,350 crore. Professor ASM Golam Hafeez, a prominent faculty member at the Bangladesh Agricultural University (BAU) and General Secretary of the Bangladesh Agricultural Economists Association (BAEA), recently shared substantial policy recommendations for the national budget of FY2026-27. Professor Hafeez pointed out a worrying downward trend over the last three fiscal years, highlighting that agriculture's share in the national budget dropped from 8.7 percent in FY2022-23 to just 5.9 percent in the current fiscal year, FY2025-26. He urged the government to bump this allocation back up to 9.5 percent for the upcoming budget FY2026-27. Given a projected national budget of Tk 9.3 lakh crore, this 9.5 percent allocation would translate to approximately Tk 88,350 crore for the agricultural sector. A major highlight of his recent budget recommendation was the call to significantly expand input subsidies due to soaring farming expenses. Professor Hafeez demanded that the government increase agricultural subsidies to Tk 35,000 crore for the budget of FY2026-27. This is more than double the current allocation of Tk 17241 crore. He argued that global energy market instabilities, geopolitical tensions (particularly involving Iran and the Strait of Hormuz), and exchange rate volatility have sharply driven up the import costs of fertilizer, fuel, seeds, and agricultural machinery—placing immense financial strain on farmers. Talking with UNB, Tawfiqul Islam Khan, a Senior Research Fellow and Additional Research Director of CPD, said that the government has to increase allocation in the agricultural sector, considering the global geopolitical situation and its impact on food security. “Bangladesh has a huge population despite limited agricultural land, flash floods and other natural disaster is occurred in every season, so the budget allocation should focus on additional food production to keep macroeconomic stability,” he pointed out. He said that eroding crop land and the high cost of production have forced farmers to reduce crop production to recover from loss. In this case, the budget should emphasize keeping the price of agriculture impute rational for encouraging agricultural production at the national level.  Widening Gap in Allocations and Subsidies: While agriculture contributes roughly 11 percent to the GDP, fiscal support has failed to keep pace with the growing economy. In FY 2011-12, the agricultural sector received 10.65 percent of the total budget. This dwindled to 8.7 percent in FY 2022-23 and hit 5.9 percent this fiscal year. Furthermore, the actual crop sector received only Tk 27,224 crore—a mere 3.45 percent of the total budget—out of the Tk 46,268 crore allocated across five agriculture-related ministries. Concurrently, agricultural subsidies saw a decline, dropping from Tk 17,261 crore in FY 2024-25 to Tk 17,241 crore in the current fiscal year, said Tawfiqul of CPD. "Agricultural subsidy is not an expense; it is a long-term investment," noted prominent agricultural economist Professor Jahangir Alam. He warned that lower investments will inevitably suppress production, increase import dependency, and aggravate food inflation, which has hovered above 10 percent for most of the last four years, he opined. Structural Shifts and Market Bottlenecks: Experts pointed out that while farmers have significantly ramped up the production of rice, vegetables, fish, maize, and potatoes, they are continually deprived of fair prices due to the dominance of middlemen and lack of state storage facilities. The current public warehouse capacity stands at only 22 lakh tonnes against an immediate national requirement of at least 60 lakh tonnes. The lack of cold chains and processing industries results in massive post-harvest losses every year. The nature of Bangladesh’s agriculture is also shifting structurally. The crop sector's share in agricultural GDP has fallen from over 75 percent post-independence to around 46 percent today, with fisheries, livestock, and forestry gaining rapid ground. However, skyrocketing prices of animal feed and poultry medication have left dairy and poultry farmers under severe strain, said Professor Hafeez. Climate Vulnerability and Mechanization Slowdown: The sector faces growing threats from climate change. This year, early flash floods and heavy rainfall severely damaged Boro paddy crops across the vast Haor (wetland) regions, crippling farmers' incomes. Experts have strongly recommended emergency compensation funds, weather-resilient crop varieties, and the introduction of comprehensive agricultural insurance. Additionally, the government's agricultural mechanization subsidy project has largely stagnated. Policy analysts suggested setting up union-based agricultural machinery banks to help marginalized farmers and offering tax exemptions to boost domestic manufacturing of machinery spare parts. Currently, Bangladesh spends a mere 0.4 percent of its agricultural GDP on research and development, compared to the 3 to 5 percent spent by many developing nations. To deliver a truly farmer-friendly fiscal plan, experts summarized that the upcoming budget must elevate agricultural financing to at least 10 percent, raise subsidies to Tk 40,000 crore, digitize the procurement system via a national farmer database, and fast-track investments in climate-smart technologies.