Finance Minister Amir Khasru Mahmud Chowdhury has proposed an allocation of Tk 69,409 crore for the Ministry of Health and Family Welfare in the 2026–27 fiscal year. The proposal, presented in the national parliament on June 11, 2026, represents an increase of Tk 34,000 crore from the previous year’s revised budget, nearly doubling the allocation. The proposed amount equals 1.01 percent of GDP, compared to 0.58 percent in 2025–26.

The minister said that during the previous authoritarian period, unplanned infrastructure projects and equipment purchases in the health sector led to widespread corruption, preventing improvements in healthcare quality. As a result, hospitals are now overwhelmed with patients, citizens are deprived of quality treatment, and many seek medical care abroad, causing foreign currency outflow.

He added that the government aims to gradually raise public health investment to 5 percent of GDP. Plans include establishing modern primary healthcare units in every union and urban ward, launching a national nutrition program, building a sustainable medicine and vaccine supply network, and recruiting 5,000 MBBS doctors to fill long-vacant posts.

Finance Minister Amir Khosru Mahmud Chowdhury announced that Bangladesh has begun developing sector-based courses and curricula aligned with global demand. Speaking during the budget session on Thursday, he said the government is strengthening market-oriented training, curriculum development, certification, accreditation, and quality control. He confirmed that the new government will continue the 2.5 percent incentive on remittances to encourage expatriate workers to send money through legal channels.

The minister stated that in the month following the new government’s assumption of office, monthly remittances reached 3.75 billion dollars, the highest in the country’s history. He emphasized that this reflects expatriates’ confidence in the democratic government. The government is also implementing plans to expand employment opportunities across sectors, establish employment exchanges at district and upazila levels, and enforce the Bangladesh Labour (Amendment) Act, 2026 to strengthen workers’ legal protection.

Highlighting priorities for expatriates, he said a special expatriate card will be introduced to link welfare, insurance, banking, and emergency services. Bangladesh is pursuing bilateral agreements with several countries to expand labor markets and reopening previously closed destinations such as Malaysia, Oman, the UAE, and Kuwait.

The Bangladesh government has announced that the existing 2.5 percent cash incentive for remittances sent through legal channels will continue in the 2026–27 fiscal year. Finance Minister Amir Khasru Mahmud Chowdhury made the announcement on June 11 while presenting the proposed national budget in parliament. He said the measure aims to sustain the growth of remittance inflows, which reached a record monthly high of 3.75 billion US dollars after the current government took office.

In his budget speech, the finance minister emphasized the government’s focus on employment creation, labor protection, and overseas workforce welfare. He highlighted plans to introduce a special expatriate card linked to welfare, insurance, banking, and emergency services. The government is also pursuing bilateral agreements with countries such as Russia, Portugal, Romania, Brazil, Greece, Serbia, and North Macedonia to expand labor markets, while reopening opportunities in Malaysia, Oman, the UAE, and Kuwait.

The budget further outlines initiatives to enhance occupational skills through market-based training and certification programs, aiming to align workforce development with domestic and international labor market demands.

Finance Minister Amir Khasru announced that Tk 1,27,500 crore has been allocated for interest payments in Bangladesh’s proposed 2026–27 national budget, representing 13.60 percent of the total budget. Of this amount, Tk 1,05,000 crore is earmarked for domestic debt interest and Tk 22,500 crore for foreign debt interest.

In the current fiscal year, domestic debt interest expenditure was initially set at Tk 1,00,000 crore but later revised to Tk 1,05,000 crore, while foreign debt interest remained unchanged at Tk 22,000 crore. The proposed total budget size for 2026–27 stands at Tk 9,38,000 crore, with a revenue target of Tk 6,95,000 crore.

This leaves a budget deficit of Tk 2,43,000 crore, which the government plans to finance through both domestic and foreign borrowing sources, according to the finance minister’s presentation.

Finance Minister Amir Khasru Mahmud Chowdhury has proposed extensive VAT and duty exemptions for the agriculture sector in Bangladesh’s 2026–27 national budget, presented in parliament on Thursday. The measures aim to boost agricultural production, strengthen food security, and protect domestic industries. The proposal includes full VAT withdrawal on 36 raw materials used in pesticide and fertilizer production, zero duty on zinc ash for zinc sulfate fertilizer, and removal of the 7.5 percent VAT on fertilizers at the trading level. Advance tax on pesticide imports will also be waived.

Additional incentives have been proposed for poultry, dairy, and fish feed industries, including zero-duty benefits on three new raw materials and reduced import duties on machinery and parts. Veterinary medicines under generic categories will also receive zero-duty benefits. To protect local producers, import duties on cashew nuts will rise sharply, with unprocessed and processed cashews both set at 25 percent, while imported pangas fish fillets will face a 20 percent supplementary duty.

The budget emphasizes tax and duty relief over direct allocations to make agriculture and livestock sectors more competitive, potentially lowering input costs and increasing domestic production.

Finance Minister Amir Khosru Mahmud Chowdhury stated that the exchange rate of the US dollar has increased from 68 taka in 2005–06 to 122 taka in 2026. He said this during his budget presentation on Thursday, noting that the rise has affected the balance of foreign transactions and foreign currency reserves.

The proposed national budget for the fiscal year has been set at 9.38 trillion taka, with a revenue target of 6.95 trillion taka. This leaves a deficit of 2.43 trillion taka. To bridge this gap, the government plans to raise funds from both domestic and foreign sources.

Business organizations such as BTMA and DCCI have commented on the budget, describing it as business- and investment-friendly while calling for additional policy support.

Finance Minister Amir Khosru Mahmud Chowdhury announced that Bangladesh’s domestic debt has risen to Tk 10.77 trillion, marking a more than sixteenfold increase from Tk 650 billion. He described the situation as concerning during his budget presentation on Thursday.

The minister also stated that foreign debt, which stood at Tk 130 billion in 2006, has grown about 6.5 times to Tk 8.12 trillion by 2024. The proposed national budget for the upcoming fiscal year is set at Tk 9.38 trillion, with a revenue target of Tk 6.95 trillion. This leaves a deficit of Tk 2.43 trillion.

To bridge the fiscal gap, the government plans to raise funds from both domestic and foreign sources, according to the finance minister’s statement.

The proposed national budget for the 2026–27 fiscal year has introduced a plan to withdraw the existing 15 percent tax on capital gains from share market investments. If approved by the National Parliament, individual investors will no longer be required to pay income tax on profits earned from trading shares and other securities of listed companies.

Under the current Income Tax Act 2023, a 15 percent tax is imposed on capital gains from transactions involving listed securities. The new budget proposal seeks to abolish this provision, effectively making such gains tax-free for general investors.

Market participants believe that the removal of this tax could strengthen investor confidence and contribute to a more dynamic capital market in Bangladesh.

Finance Minister Amir Khasru Mahmud Chowdhury announced that Bangladesh’s foreign debt has increased nearly six and a half times since 2006, reaching Tk 8.12 trillion in 2024. He made the disclosure on Thursday while presenting the national budget for the upcoming fiscal year.

The minister also stated that domestic debt has expanded from Tk 650 billion to Tk 10.77 trillion, marking more than a sixteenfold rise, which he described as concerning. The proposed budget size is Tk 9.38 trillion, with a revenue target of Tk 6.95 trillion. This leaves a deficit of Tk 2.43 trillion, which the government plans to finance through both domestic and foreign borrowing.

The report indicates that the government aims to balance the large fiscal gap by mobilizing funds from multiple sources, reflecting the growing reliance on debt to sustain budgetary commitments.

Finance Minister Amir Khosru Mahmud Chowdhury stated that Bangladesh’s interest payment expenses have increased thirteenfold over the past twenty years. In the 2005–06 fiscal year, the government spent 8,500 crore taka on interest payments, which rose to 1,14,700 crore taka in the 2023–24 fiscal year. He made the disclosure on Thursday while presenting the national budget.

The proposed budget for the upcoming fiscal year is set at 9,38,000 crore taka, with a revenue target of 6,95,000 crore taka. This leaves a deficit of 2,43,000 crore taka. To bridge this gap, the government plans to raise funds from both domestic and foreign sources.

The report also notes that while the budget includes positive aspects, several business organizations have called for additional policy support to strengthen the investment environment.

Finance Minister Amir Khasru announced that the new national budget includes major initiatives to restore discipline in Bangladesh’s banking and financial sectors. Presenting the budget on Thursday, he said the reforms aim to revive the economy and sustain investment flows by reducing default loans, ensuring transparency in loan approval and rescheduling, and strengthening accountability in bank management. A risk-based supervision system will be introduced to rebuild weak banks’ financial capacity, with recapitalization and management reforms as needed.

The minister stated that about Tk 40,000 crore has already been spent this fiscal year to recapitalize weak banks, alongside restructuring efforts to return depositors’ funds. The budget also includes measures to repatriate money laundered abroad. Political appointments and interference in bank operations are to be stopped through legal amendments, while international standards for risk management, capital adequacy, and corporate governance will be enforced to make financial institutions more stable and competitive.

The budget further outlines structural reforms in the banking and capital markets to build a modern and sustainable financial system and shift from a debt-driven to an investment-based economy by promoting domestic and foreign investment and developing the bond market.

The government has proposed a total allocation of Tk 17,345 crore for the power and energy sector in the 2026–27 fiscal year, up from Tk 16,952 crore in 2025–26. This represents an increase of about Tk 400 crore, reflecting the sector’s continued importance in national development planning.

To encourage investment and streamline supply operations, the budget proposal includes a reduction in tax deduction at source. The rate for electricity purchases from power producers is proposed to be lowered from 4 percent to 3 percent, while the rate for fuel oil supplied by refineries would drop from 1.5 percent to 1 percent.

According to the proposal, these measures are expected to reduce business costs in the power and energy sector and make its operations more dynamic.

The government has set a target to reduce inflation to 7.5 percent in the 2026–27 fiscal year. To stabilize prices, the proposed budget includes measures to lower source taxes on essential and agricultural products. About 60 items are expected to benefit from significant tax reductions, with the new proposal setting a uniform source tax rate of 0.5 percent, down from the current rates of 1, 2, and 5 percent.

According to the National Board of Revenue, the tax relief will apply to key commodities such as rice, wheat, potatoes, onions, garlic, ginger, salt, sugar, edible oil, and various seeds. Livestock, poultry, and fish are also included to boost the supply of animal protein. The government stated that this initiative aligns with its electoral commitment to ease the burden of rising living costs.

Market analysts believe that lowering taxes at the production and distribution levels will reduce business expenses and help stabilize retail prices. However, they emphasize that effective market monitoring and efficient supply management will be essential to achieve the desired results.

Finance and Planning Minister Amir Khosru Mahmud Chowdhury will hold a post-budget press conference on Friday at 3 p.m. at the Osmani Memorial Auditorium in Dhaka. The event follows the presentation of the proposed national budget for the 2026–27 fiscal year, which took place in the National Parliament on Thursday.

Before being presented in Parliament, the proposed budget received approval from a special cabinet meeting attended by the Prime Minister. The Finance Minister traditionally holds a press conference the day after the budget presentation to explain key aspects of the proposal and respond to questions from journalists.

The upcoming briefing is expected to provide further details on the newly proposed budget of Tk 9.38 trillion and clarify its major components and fiscal priorities for the next financial year.

Finance Minister Amir Khasru Mahmud Chowdhury announced that default loans in Bangladesh have reached Tk 6.44 trillion, with the default rate climbing to 35.73 percent in the first quarter of the 2025–26 fiscal year. He made the disclosure on Thursday while presenting the national budget.

According to the minister, the default loan rate was 13.16 percent in 2005. He also stated that the overall capital adequacy in the banking sector, which stood at 7.30 percent in December 2005, has fallen to a negative 2.64 percent by the end of 2025. Additionally, private sector credit growth has declined from 18.30 percent in the 2005–06 fiscal year to 6.50 percent in 2024–25.

The figures presented highlight a significant deterioration in the banking sector’s financial health, reflecting rising loan defaults and weakening capital positions across banks.