Finance Minister Amir Khasru Mahmud Chowdhury is expected to present a BDT 9.38 trillion budget on Thursday, Bangladesh’s largest on record, with officials signalling a shift from physical infrastructure towards human capital development and a growth target of 6.5 percent, the state news agency BSS reported.
The proposed fiscal 2026–27 budget, the first from a Bangladesh Nationalist Party-led administration since FY 2006–07, is being prepared under the theme of “Economic Democratization and Deregulation” and aims to support the country’s journey towards becoming a trillion-dollar economy. Finance division officials say it is expected to prioritise human resource development over physical infrastructure.
The budget comes against a backdrop of economic challenges. Point-to-point inflation stood at 9.42 percent in May, well above the government’s proposed target of 7.5 percent for the coming fiscal year. Finance ministry officials estimate gross domestic product will reach BDT 68.30 trillion in FY27, with growth targeted at 6.5 percent and the fiscal deficit projected at BDT 2.51 trillion, or 3.6 percent of GDP.
Official estimates suggest the projected deficit would be financed through BDT 1.16 trillion in foreign borrowing and BDT 1.35 trillion from domestic sources.
Domestic borrowing is expected to include BDT 1.20 trillion from the banking system and BDT 150 billion from savings instruments.
Education and health are expected to receive the largest allocations. Probable measures also under consideration include a BDT 20 billion SME entrepreneurship fund, a BDT 2.25 billion entrepreneurship development fund and a BDT 3 billion allocation for youth-focused creative economic activities.
A proposed “E-Health Card” programme would initially cover 2.5 million citizens as part of efforts to strengthen universal health coverage through digitalised health services.
The budget is also expected to target overseas employment opportunities for 10 million people, while social protection allocations would include programmes linked to farmer cards and family cards. Partial implementation of a new public-sector pay scale is also likely.
According to officials, the budget speech will also include a dedicated chapter on ease of doing business, outlining a unified “Banglabiz” one-stop digital platform to centralise licensing, certification and approval procedures. The proposed reforms are intended to reduce bureaucratic delays, eliminate duplication of documentation, and reduce face-to-face interactions between investors and regulators.
The National Board of Revenue is expected to undergo extensive automation under the proposed fiscal framework. Planned measures include full online corporate tax filing, year-round submission facilities, direct electronic tax refunds to bank accounts, and a mobile application for e-return submissions. Officials also expect higher tax rates for late filers and incentives for early compliance.
Economists note that while the government’s growth target reflects optimism, maintaining macroeconomic stability, particularly through inflation control and improved revenue mobilisation, will remain a challenge. Policy analysts say improving the ease of doing business, strengthening financial sector stability and accelerating project implementation will be critical to sustaining growth momentum.
Policymakers remain optimistic that ongoing structural reforms and improved governance mechanisms can help unlock investment opportunities and support medium-term growth ambitions.