B Mirror Desk : The Finance Division has developed the budget for the upcoming fiscal year with a strong emphasis on controlling inflation, enhancing investor confidence, and reinstating macroeconomic stability. These key priorities will be confirmed today during an important meeting led by the chief adviser. If elections proceed as planned, this will be the only budget presented by the interim government.
In a break from long-standing tradition, the budget for the fiscal year 2025–26 will be revealed on Monday, June 2, instead of the usual first Thursday of the month. This adjustment is due to the Eid-ul-Azha holidays, and Finance Adviser Salehuddin Ahmed will announce the budget on national television. It will be enacted through a presidential ordinance, as allowed by the current constitutional framework. This will be the third time an interim government has delivered the budget via a televised address, following similar presentations by former adviser AB Mirza Md Azizul Islam during the 2007–08 period.
The finance adviser has previously indicated that the forthcoming budget prioritizes inflation control. ‘To protect the vulnerable, we are expanding both the number of beneficiaries and the amount of transfers in various social safety net programs,’ he stated. He also emphasized that job creation, energy efficiency, and increased investment will be key focuses.Senior officials from the finance ministry informed to media that concerns regarding financing have notably diminished due to confirmed backing from the International Monetary Fund (IMF), World Bank, and other development partners.
However, they cautioned that implementing the reforms mandated by the IMF, particularly the transition to a market-oriented exchange rate, may complicate efforts to control inflation. The IMF has also lifted its previous requirement for the government to fully eliminate power and energy subsidies by 2026. Nonetheless, limits on subsidies must still be adhered to. The revised budget for FY25 allocates Tk62,000 crore for power and energy subsidies, which is expected to cover most outstanding dues, although this amount is projected to decrease to Tk35,000 crore next year. Subsidies for agriculture and food security are anticipated to remain relatively stable at approximately Tk30,000 crore. Conversely, export incentives are expected to decline as Bangladesh prepares for its graduation from Least Developed Country (LDC) status in November 2026.
The Finance Division has also been directed to enhance the budget’s appeal for investment, particularly to draw in foreign direct investment. A senior finance official stated, ‘We are introducing new initiatives and may consider legal reforms to simplify business operations and mitigate risks associated with LDC graduation.’ As this is the first budget following the July uprising that resulted in the establishment of the interim government, policymakers are also expected The budget will prioritize food security, economic stability, and the acceleration of social development. It will also emphasize broader reform objectives, including good governance, inclusive growth, poverty alleviation, women’s empowerment, and climate resilience. Officials indicated that the budget is being crafted to address public demands that emerged during last year’s political unrest and to mitigate social inequality.
This budget will be smaller than the current one, marking the first reduction since the country gained independence in 1971, due to a strategic cut in the Annual Development Programme (ADP). The proposed total budget stands at Tk7.90 lakh crore, a decrease from Tk7.97 lakh crore this year. The development budget is set to decrease to Tk2.4 lakh crore, with the ADP allocation expected to drop from Tk2.65 lakh crore to Tk2.3 lakh crore. Despite the overall budget reduction, expenditures on operational or non-development activities are projected to increase, with estimated operating costs for FY26 reaching Tk5.5 lakh crore, up from Tk5.07 lakh crore in the current fiscal year.
