Key facts
- Bangladesh's new budget totals 9.38 trillion taka ($77 billion).
- The government aims to achieve 6.5% GDP growth and 7.5% inflation.
- Development expenditure is planned to increase by 47% to 3.16 trillion taka.
- The budget projects a fiscal deficit of 3.6% of GDP.
- Key priorities include macroeconomic stability, purchasing power, and living standards.
Bangladesh has unveiled a national budget of 9.38 trillion taka ($77 billion) for the upcoming fiscal year, with the new administration under Prime Minister Tareque Rahman targeting 6.5% economic growth and 7.5% inflation. The budget aims to address economic fragility exacerbated by high prices, weak investment, and financial sector weaknesses.
Finance Minister Amir Khosru Mahmud Chowdhury presented the budget, emphasizing priorities such as restoring macroeconomic stability, strengthening purchasing power, and improving living standards. The budget adopts a more expansionary fiscal stance compared to the previous interim government, with overall spending increasing by 19% and development expenditure seeing a significant jump of 47% to 3.16 trillion taka. The government has set an ambitious revenue target of 6.95 trillion taka.
The budget projects a fiscal deficit of 2.43 trillion taka, approximately 3.6% of the gross domestic product. This deficit is planned to be financed through a combination of domestic and foreign borrowing, with an increased reliance on foreign loans intended to alleviate pressure on the local banking system while maintaining development spending.
Chowdhury acknowledged that structural weaknesses, governance failures, and external shocks have impacted the economy, leading to a slowdown in growth from 5.78% in fiscal 2022-23 to an estimated 3.49% in the outgoing fiscal year. The budget's theme is "Journey Towards a Democratic, Humane and Inclusive Economy," with core priorities including stability, investment, production, employment, and fairness. The government is banking on reforms in taxation, banking, and public finance, alongside stronger investment and exports, particularly from the garment sector, to reverse the economic slowdown.