10 New Budgetary Initiatives!

Ten special initiatives have been taken in various sectors in the proposed budget for the upcoming 2026-27 fiscal year. Finance Minister Amir Khasru Mahmud Chowdhury highlighted these in his budget speech on Thursday.

He told Parliament that allocations have been made for startup capital for women and young entrepreneurs to support their information and communication technology projects. A 'Startup Sandbox' has been created in the budget to encourage young and women entrepreneurs, where new entrepreneurs will receive a 9-year tax holiday and a zero percent turnover tax benefit.

A research fund of Tk 100 crore has been allocated for the extraction of Blue Economy resources. Although the budget documents do not detail the blue economy sources, the government's main goal is to achieve economic prosperity through the scientific use of marine resources. This research fund will primarily be used for feasibility studies and sustainable management of marine fisheries, mineral resources, and the tourism sector.

An integrated health sciences research fund of Tk 100 crore has been established. This fund will play a crucial role in the health sector in integrating modern technology and innovating treatments for new diseases. This research fund will further strengthen the public health objectives set through tax rebate benefits for 11 public welfare health organizations in the budget.

A health risk management fund of Tk 2,000 crore has been allocated. To reduce medical expenses for ordinary people, VAT and duties on kidney dialysis and heart rings (stents) have been waived in the budget. This fund will primarily ensure the management of pandemics or emergency health crises and the delivery of modern healthcare to the doorsteps of poor patients.

Tk 100 crore has been allocated for a climate change risk management fund. To combat climate change, the government has proposed a zero percent tax rate until 2035 for the production of environmentally friendly solar power instead of fossil fuels.
An allocation of Tk 17,000 crore has been made for operational loans. This is used to meet the daily expenses and urgent financial needs of various government agencies and projects. The goal set in the budget to keep the investment-production cycle dynamic will be supported by these operational loans in its implementation.

An allocation of Tk 2,000 crore has been made for financial assistance to small and medium industries. To develop the SME sector, a turnover of up to Tk 50-70 lakh has been kept tax-free. This support fund will provide loans to small entrepreneurs on easy terms and ensure technical assistance for marketing their products.

A renewable energy development fund of Tk 100 crore has been established. To ensure energy security, proposals have been made for duty exemptions on solar power sector equipment and tax rebates at the consumer level. This fund will primarily be spent on expanding alternative energy sources and innovative work on green energy projects.

An allocation of Tk 300 crore has been made for the creative economy. Proposals have been made to remove duties on musical instruments like guitars, pianos, or violins and cinematic camera parts, aiming to build an international standard 'creative economy' by utilizing the creativity of the younger generation. This money will be used for skills development of content creators and artists.

The government is introducing a special 'Probashi (Expatriate) Card' to ensure the protection and overall welfare of expatriate Bangladeshi workers. The card will be linked to expatriate welfare services, insurance, banking facilities, and emergency assistance. Initiatives have already been taken to sign bilateral agreements with countries such as Russia, Portugal, Romania, Brazil, Greece, Serbia, and North Macedonia as alternative labor markets. The concerned ministry will manage the expenditure for implementing this initiative.