Bangladesh is preparing to announce a record budget of about Tk 9.38 trillion for the 2026–27 fiscal year amid mounting economic pressures. The government plans to present the budget in parliament on June 11, marking a nearly 19 percent increase from the current year’s Tk 7.9 trillion. Economists identify growing foreign debt repayments and persistent inflation as the biggest challenges to implementing the new government’s first budget.

According to the Economic Relations Division, Bangladesh paid USD 3.802 billion in foreign loan installments and interest during July–April of the current fiscal year, up 8.41 percent from the same period last year. Meanwhile, new loan commitments and disbursements have declined sharply. The government expects to spend around Tk 460 billion on foreign debt servicing next year, which could strain allocations for development and social protection.

Inflation remains another major concern, with April’s rate rising to 9.04 percent from 8.71 percent in March. Analysts warn that without effective control measures, higher living costs could undermine welfare initiatives and increase pressure on low- and middle-income households.