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The government of Bangladesh has proposed an allocation of Tk 1,884 crore for the Ministry of Civil Aviation and Tourism in the 2026–27 national budget, presented in parliament by Finance Minister Amir Khasru Mahmud Chowdhury. The proposal exceeds the revised allocation of Tk 1,300 crore from the outgoing fiscal year but remains below the original Tk 2,455 crore. Alongside the budget, a roadmap was introduced to transform Bangladesh into a regional aviation hub.
The finance minister outlined plans to modernize the aviation sector and accelerate tourism-driven economic growth through infrastructure upgrades, fleet expansion, and improved connectivity. Ongoing projects include terminal expansions at Jashore and Saidpur airports, full readiness of Hazrat Shahjalal International Airport’s third terminal, and runway enhancements at Sylhet and Chattogram airports. Biman Bangladesh Airlines has finalized a contract with Boeing to purchase 14 modern aircraft worth approximately USD 3.7 billion.
The minister said these initiatives aim to strengthen international connectivity, enhance passenger services, and raise tourism’s contribution to GDP to 6–7 percent. Future plans include establishing a national air connectivity grid, new international gateways, and a digital logistics platform to support trade and transport.
Bangladesh allocates Tk 1,884 crore for aviation and tourism modernization in 2026–27 budget
The proposed national budget for the 2026–27 fiscal year has allocated Tk 40,245.83 crore for Bangladesh’s Local Government Division. Of this, Tk 6,510.04 crore is earmarked for operating expenses and Tk 33,735.79 crore for development activities. The allocation was detailed in government documents presented to the National Parliament on Thursday.
Compared to the revised budget of Tk 44,242.56 crore in 2025–26, the new allocation marks a reduction of about Tk 3,996.73 crore. Despite the decrease, the budget emphasizes major initiatives such as the nationwide safe water supply program, which includes installing new water sources, rural pipe water schemes, and arsenic mitigation in coastal and vulnerable areas. It also highlights the “Climate-Resilient Rural Infrastructure Construction and Preservation” project to strengthen rural development against climate impacts.
The budget further outlines programs to enhance rural livelihoods through road, bridge, and culvert construction, modernization of rural markets, and excavation of ponds and canals. It also prioritizes infrastructure repair for educational, social, and religious institutions and aims to improve the accuracy of birth and death registration across the country.
Bangladesh sets Tk 40,245 crore budget for local government, focusing on rural and climate projects
Finance Minister Amir Khosru Mahmud Chowdhury has proposed an allocation of over Tk 1,457 crore for the Ministry of Chittagong Hill Tracts Affairs in the 2026–27 fiscal year budget, marking an increase of about Tk 95 crore from the previous year. The proposal emphasizes physical infrastructure development and improving the living standards of small ethnic communities in the three hill districts—Rangamati, Khagrachhari, and Bandarban.
According to the budget analysis, Tk 964.64 crore of the total allocation is earmarked for development projects, while Tk 492.36 crore is set aside for operational expenses. The plan includes Tk 658.57 crore in recurring expenditure and Tk 798.43 crore in capital expenditure. Priority areas include road connectivity, safe water supply, electrification, and tourism infrastructure, alongside vocational education and primary healthcare for remote communities. Cultural preservation programs for indigenous languages and traditions are also planned.
The government aims to boost employment and income in the hill districts through expanded agricultural and afforestation projects, reflecting a broader focus on socio-economic advancement in the region.
Bangladesh allocates Tk 9.5 billion more for Chittagong Hill Tracts development in 2026–27 budget
The University Grants Commission (UGC) of Bangladesh has approved a total budget of Tk 12,300 crore 4 lakh for the 2026–27 fiscal year to cover expenses of 58 public universities and the commission itself. Of this, Tk 12,001 crore 82 lakh is allocated for the universities and Tk 298 crore 58 lakh for the UGC. The budget was approved at the 178th full commission meeting chaired by UGC Chairman Professor Dr. Mamun Ahmed. Dhaka University received the highest revenue allocation of Tk 949 crore 36 lakh for the upcoming fiscal year.
The total allocation for public universities increased by Tk 1,497 crore 83 lakh compared to the revised budget of Tk 10,802 crore 21 lakh in 2025–26. The new budget includes Tk 7,428 crore 43 lakh for operational expenses and Tk 4,573 crore 39 lakh for 43 development projects. The UGC’s main budget also earmarks Tk 238 crore for research and foreign scholarships, up from Tk 229 crore in the previous year.
Following an April 2026 decision to merge overlapping research funds, Tk 200 crore from universities’ research budgets has been integrated into the UGC’s allocation, raising its research fund to Tk 226 crore. The UGC chairman noted that despite limited resources, transparent and prioritized spending could significantly benefit higher education.
Dhaka University secures top revenue share in UGC’s 2026–27 public university budget
The proposed national budget for the 2026–27 fiscal year allocates Tk 2,188 crore for the Law and Justice Division under the Ministry of Law, Justice and Parliamentary Affairs, and Tk 291 crore for the Supreme Court. The revised allocation for the Supreme Court in the previous budget was Tk 270 crore, while the outgoing 2025–26 fiscal year had Tk 2,075 crore for the Law and Justice Division.
The finance minister announced plans to establish fast-track courts to expedite commercial and capital market-related cases. He said the government is reviewing a specialized dispute resolution mechanism for capital market conflicts, which may include a tribunal or fast-track court with legal authority to enforce decisions. The minister also proposed expanding bilateral investment treaties and updating double taxation avoidance agreements to improve the business environment and strengthen investor protection.
Additionally, the minister said the scope of alternative dispute resolution (ADR) in income tax disputes will be expanded to allow easier settlements without formal appeals, and pre-litigation mediation will be encouraged to recover defaulted loans more efficiently.
Bangladesh allocates Tk 2,188 crore for judiciary, plans fast-track courts for commercial disputes
The government of Bangladesh has announced plans to transform the airports in Rajshahi, Cox’s Bazar, Jashore, and Saidpur into international gateways and to launch an integrated digital logistics platform. Finance Minister Amir Khosru Mahmud Chowdhury made the announcement in Parliament while presenting the 2026–27 national budget, outlining a broader strategy to establish a national aviation connectivity grid and convert Dhaka, Chattogram, and Sylhet into integrated passenger and logistics hubs.
According to the minister, the initiatives aim to strengthen Bangladesh’s position in global trade and transport networks and to turn the country into a modern regional aviation center. The government is implementing several infrastructure projects, including terminal expansions at Jashore and Saidpur airports, full operation of the third terminal at Hazrat Shahjalal International Airport, and runway capacity upgrades in Sylhet and Chattogram. Development work at Cox’s Bazar Airport is also nearing completion.
The plan includes improving passenger services, cargo management, and aviation safety standards while promoting renewable energy use and workforce development. The government expects these measures to boost private investment, create jobs, and raise tourism’s contribution to GDP from six to seven percent.
Bangladesh to upgrade four airports as international gateways and launch digital logistics platform
Bangladesh’s Finance Minister announced the establishment of a fast-track court to expedite the resolution of capital market-related cases. The declaration came during the presentation of the national budget in parliament on Thursday. The minister said the government is reviewing a specialized dispute resolution mechanism for capital market conflicts, which may include a tribunal or fast-track court with legal authority to enforce decisions.
He also stated that the scope of Alternative Dispute Resolution (ADR) in income tax disputes will be expanded to allow easier settlements without formal appeals. To reduce lengthy legal processes and improve recovery efficiency, the government will encourage pre-litigation mediation for defaulted loan recovery.
The proposed budget for the 2026–27 fiscal year allocates 2,188 crore taka for the Ministry of Law, Justice and Parliamentary Affairs and 291 crore taka for the Supreme Court, compared to 2,075 crore and 270 crore taka respectively in the previous year’s revised budget.
Bangladesh to set up fast-track court for capital market disputes under new budget plan
The government of Bangladesh has announced plans to construct a second Jamuna Bridge and a Dhaka-Chattogram elevated expressway as part of the proposed 2026–27 fiscal year budget. Finance and Planning Minister Amir Khasru Mahmud Chowdhury presented the budget proposal in the National Parliament on Thursday afternoon, highlighting initiatives to modernize the country’s road and transport systems.
According to the budget speech, the government aims to strengthen large-scale bridge and expressway construction under the Bridges Division to make transportation safer, more efficient, and technology-driven. The plan also includes expanding electronic toll collection, introducing smart traffic management, and promoting environmentally friendly technologies. Smart axle load control and new monitoring stations are also part of the initiative.
The budget further mentions ongoing surveys to identify potential corridors for a 3,000-kilometer national expressway grid and plans to develop an integrated multimodal transport system combining road, rail, water, and air networks. These projects are expected to reduce travel time and costs while boosting trade and overall economic activity.
Bangladesh plans second Jamuna Bridge and Dhaka-Chattogram elevated expressway in 2026–27 budget
Sonali Bank PLC has inaugurated a new sub-branch named 'Metro Rail Building Sub-branch' at the ground floor of Dhaka Mass Transit Company Limited’s (DMTCL) administrative building in Uttara. The inauguration ceremony took place on Thursday, led by Sonali Bank’s Managing Director and CEO Md. Shawkat Ali Khan and DMTCL’s Managing Director Md. Shaukatul Alam.
The new sub-branch will operate under the supervision of Sonali Bank’s Uttara Janapath Branch as a city sub-branch. It aims to provide modern banking services to DMTCL officials, metro rail-related institutions, and general customers. The opening ceremony was held at DMTCL’s conference room, attended by senior officials from both organizations, including Sonali Bank’s General Manager (In-charge) Md. Mahfuzur Rahman and DMTCL’s Project Director (Additional Charge) Abdul Matin Chowdhury.
Speakers at the event highlighted that the new sub-branch will facilitate faster and easier banking for metro rail employees and stakeholders while supporting the expansion of digital and customer-friendly banking services. Participants also praised the role of state-owned banks in promoting economic development and financial inclusion.
Sonali Bank opens new sub-branch at DMTCL administrative building in Uttara
Finance Minister Amir Khosru Mahmud Chowdhury announced in Parliament on June 11, 2026, that the government has proposed several tax and VAT exemptions in the health sector to reduce treatment costs for citizens. The proposal includes the withdrawal of a 10% VAT at the supplier level on imported heart stents, which could lower the price of each stent by up to 20,000 taka. VAT and advance tax on dialysis filters and intraocular lenses have also been lifted, potentially reducing dialysis costs by 800 taka per patient and lens prices by 5,000 taka.
The minister said the move aims to make healthcare more affordable, as out-of-pocket expenses in Bangladesh remain high compared to other countries. He outlined broader health policy goals, including universal and equitable healthcare, expansion of rural services, and strengthening of maternal, child, and nutrition programs. The government plans to gradually raise public health investment to 5% of GDP.
Future initiatives include establishing modern primary healthcare units in every union and urban ward, creating a national ambulance network, and developing a sustainable national drug and vaccine supply system.
Bangladesh budget cuts VAT on stents and dialysis filters to reduce healthcare costs
Finance Minister Amir Khasru Mahmud Chowdhury has proposed extending the existing VAT exemption on metro rail travel for another two years. The proposal was made on Thursday during the presentation of the 2026–27 national budget in the Jatiya Sangsad. If approved, the exemption will remain in effect until June 30, 2028.
Under current VAT law, tickets for any air-conditioned rail service are subject to a 15 percent VAT. However, since the launch of the fully air-conditioned metro rail in December 2022, the tax has not been imposed. The National Board of Revenue (NBR) attempted to implement VAT in July 2024 but withdrew the plan following public opposition and government intervention. The NBR later issued notifications extending the exemption, most recently until June 30, 2026.
In addition to the VAT extension, citizens aged 65 and above will receive a 25 percent fare discount on metro rail travel and free rides on regular trains. The government also plans to build a modern public transport network integrating six metro rail lines and a monorail-based feeder system.
Bangladesh plans to extend metro rail VAT exemption until June 2028
The proposed national budget for the 2026 fiscal year has reduced the allocation for Bangladesh’s Ministry of Shipping to Tk 9,080 crore, down from Tk 10,279 crore in the 2025–26 proposal. This marks a decrease of Tk 1,217 crore. The budget speech outlined ongoing efforts to expand dredging and excavation activities to maintain navigability on key waterways, particularly before the monsoon season. The Bangladesh Inland Water Transport Authority (BIWTA) is conducting emergency dredging to keep internal routes operational.
The speech further emphasized accelerating development at Payra and Mongla ports, expanding land ports, modernizing river ports and launch terminals, and strengthening safety on waterways to improve overall connectivity. It also highlighted plans to modernize vessel registration, enhance sailor training, create employment, and expand digital services to boost institutional capacity.
Major projects such as the Matarbari Deep Sea Port, Chattogram Bay Terminal, Patenga Container Terminal, and Laldia Container Terminal will continue to advance. The government aims to strengthen international trade and integrated water transport through increased port capacity, enhanced dredging, and expanded digital and automation systems.
Bangladesh reduces shipping ministry budget by Tk 1,217 crore in 2026 proposal
Bangladesh’s proposed national budget for the 2026–27 fiscal year has reduced the allocation for the transport infrastructure sector to Tk 60,730 crore, down from Tk 69,196 crore in the 2025–26 fiscal year. Finance and Planning Minister Amir Khosru Mahmud Chowdhury announced the figures during his budget speech in the National Parliament on Thursday.
According to the proposal, the Roads Division will receive Tk 36,918 crore, compared to Tk 38,496 crore in the previous year, marking a reduction of Tk 1,578 crore. The Bridges Division’s allocation has been set at Tk 2,908 crore, down from Tk 6,022 crore, a decrease of Tk 3,114 crore. The Railway sector will get Tk 9,940 crore, compared to Tk 11,944 crore last year, a reduction of Tk 2,004 crore. Other transport infrastructure sectors have been allocated Tk 10,964 crore, down from Tk 12,734 crore, a decrease of Tk 1,770 crore.
The proposed reductions indicate a broad contraction across all major transport infrastructure divisions in the upcoming fiscal year.
Bangladesh trims transport infrastructure budget by Tk 8,466 crore for fiscal year 2026–27
Finance Minister Amir Khosru Mahmud Chowdhury has presented Bangladesh’s largest-ever national budget for the 2026–27 fiscal year in the second session of the 13th National Parliament. The budget session, chaired by Speaker Hafiz Uddin Ahmed, marks the first budget of the BNP-led government following its victory in the February 12 election.
A key proposal offers relief to the country’s garment industry, as the source tax on cash incentives from export earnings may be reduced from 10 percent to 5 percent. The move is expected to increase liquidity in the export sector, though the government anticipates a revenue loss of around Tk 500 crore. Currently, about 43 sectors, including ready-made garments, receive export incentives ranging from 0.30 percent to 10 percent, while the source tax on export income remains at 1 percent.
The Bangladesh Textile Mills Association (BTMA) has welcomed the positive aspects of the budget but has called for additional policy support to strengthen the sector further.
Bangladesh budget cuts source tax on export incentives to support garment sector growth
Bangladesh’s Finance Ministry has set a target to increase the country’s foreign exchange reserves to 41.01 billion dollars by the 2026–27 fiscal year. The goal is outlined in the ministry’s Medium-Term Budget Framework (MTBF) for the upcoming fiscal year. According to the document, reserves stood at 46.39 billion dollars in 2020–21 but declined to 26.90 billion in 2023–24 before stabilizing at 31.17 billion dollars by the end of 2024–25.
The MTBF projects further growth in reserves over the medium term, forecasting 50.62 billion dollars in 2027–28 and 62.64 billion dollars in 2028–29. The document notes that by 2026–27, the reserves would be sufficient to cover about 5.4 months of import expenses, approaching the internationally accepted adequacy level of six months.
These projections are based on expectations of strong remittance inflows, export growth, and prudent management of external borrowing, according to the Finance Ministry’s framework.
Bangladesh targets 41 billion dollar foreign reserves by 2026–27 fiscal year
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