Tk 9.38 Trillion Budget Proposed

Following a major political shift after 15 years and the 2024 mass uprising led by students and the public, the BNP government has presented its first national budget. After coming to power through the general election on February 12, 2026, the government has placed a massive budget proposal of Tk 9.38 trillion for the 2026-27 fiscal year under the slogan ‘Journey Toward a Democratic, Humane and Inclusive Economy.’

Finance Minister Amir Khasru Mahmud Chowdhury placed the budget proposal in Parliament on Thursday.

The budget primarily aims to recover the macroeconomy from the debris of economic crisis, corruption, and widespread mismanagement under the previous government, rein in inflation, and restore order in the market system. Considering global geopolitical instability and risks arising from ongoing conflicts in the Middle East, the finance minister announced a target to reduce inflation to 7.5 percent and raise economic growth to 6.5 percent in the next fiscal year. He also outlined a concrete roadmap to transform Bangladesh into a $1 trillion economy by 2034.

Overall Expenditure Structure and Sectoral Allocation

The proposed budget prioritizes social and human development in its expenditure framework. Among the three major spending categories:

The social infrastructure sector receives the highest allocation of Tk 2,79,001 crore, accounting for 29.74 percent of the total budget.

The general services sector is allocated Tk 2,45,117 crore, representing 26.13 percent of total spending.

The physical infrastructure sector is allocated Tk 1,74,988 crore, or 18.66 percent of the total budget.

External and Domestic Financing Sources

The proposed Tk 9.38 trillion budget carries an overall deficit of Tk 2.43 trillion. To finance this gap, the government has opted to rely more on external sources rather than placing additional pressure on the banking sector, as in previous administrations.

Of the total deficit, Tk 1.16 trillion will be met from external sources, while Tk 1.27 trillion will come from domestic sources. Within domestic financing, Tk 1.12 trillion will be borrowed from the banking sector, Tk 6,000 crore less than in the outgoing fiscal year. The government has reduced borrowing from banks to keep private sector credit flows stable.

Education Sector Reforms