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Khosru set to present largest-ever Tk9.38 lakh crore budget

Khosru set to present largest-ever Tk9.38 lakh crore budget
Finance Minister Amir Khosru Mahmud Chowdhury. File Photo: Collected
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Finance Minister Amir Khosru Mahmud Chowdhury is set to present his first national budget for the fiscal year 2026-27 in the Jatiya Sangsad on Thursday.

The budget, aimed at steering Bangladesh towards a more investment-driven, “trillion-dollar economy,” will focus on higher growth targets, regulatory reforms, and expanded fiscal measures.

The total outlay is projected at Tk9.38 lakh crore, marking the largest national budget in the country’s history. This is the first budget of the BNP government following its landslide parliamentary victory on 12 February 2026. The last BNP-led budget was presented for FY2006-07 under former Finance Minister M Saifur Rahman.

According to Finance Division officials, the FY27 budget has been prepared under the broad theme of “Economic Democratization and Deregulation: Bangladesh’s Journey Towards a Trillion-Dollar Economy.”

A strong emphasis will be placed on human resource development, reflecting the “Bangladesh First” vision. Key sectors such as education, health, employment, social protection, and entrepreneurship are prioritised to build long-term economic capacity and a knowledge-based, inclusive economy.

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Key budget highlights

Highest allocations in education and health sectors.

Entrepreneurship Development Fund: Tk225 crore.

SME Entrepreneurship Fund: Tk2,000 crore.

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Partial implementation of new pay scales for public servants.

Possible launch of an “E-Health Card” programme for 2.5 million citizens to expand digital health coverage.

Social safety net allocations including farmer and family cards, and employment creation for 10 million overseas workers.

Tk300 crore earmarked to promote creative economic activities and prevent youth involvement in drugs, extremism, and terrorism.

Fiscal framework and fconomic outlook

The budget is projected to finance Tk9.38 lakh crore in expenditure, with Tk6.95 lakh crore expected from domestic revenue and the remainder from borrowing and external assistance. The fiscal deficit is estimated at Tk 2.51 lakh crore, equivalent to 3.6 percent of GDP, within internationally recommended limits. GDP is projected at Tk68.30 lakh crore with a 6.5 percent growth target and 7.5 percent inflation forecast.

Economists note that while the growth target is ambitious, maintaining macroeconomic stability, controlling inflation, and improving revenue mobilisation will be key challenges.

Deregulation and investment facilitation

The FY27 budget is set to introduce measures aimed at improving the ease of doing business and attracting investment. Reforms will include simplified licensing, faster business approvals, and modernised tax administration.

A centralised “Banglabiz” digital platform is expected to integrate licensing, certification, and approval processes to reduce bureaucracy and direct contact with authorities. The budget speech will reportedly include a chapter on “Ease of Doing Business through Deregulation.”

Tax administration modernisation

The National Board of Revenue (NBR) is expected to expand automation, offering online corporate tax filings, year-round submission facilities, direct bank refunds, and a mobile app for e-returns. Early filers may receive incentives, while late filers could face higher rates. Tax dispute resolution will be streamlined via tribunals, appellate bodies, and alternative dispute resolution mechanisms.

Implementation challenges

Despite ambitious targets, success will depend on effective implementation, revenue performance, and macroeconomic stability. Challenges include sluggish private investment, limited revenue mobilisation, and global economic uncertainty.

Officials remain optimistic that structural reforms and improved governance will unlock new investment opportunities and sustain medium-term growth.

Finance Minister Chowdhury is expected to emphasise the government’s commitment to inclusive development, fiscal prudence, and job creation while balancing growth with inflation control as the FY27 budget is placed before Parliament tomorrow.

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