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The government of Bangladesh has set a target to borrow Tk 1.12 trillion from the banking sector in the 2026–27 fiscal year to finance the national budget deficit. Finance Minister Amir Khosru Mahmud Chowdhury announced the plan while presenting the budget in the National Parliament on Thursday. The borrowing target from banks is Tk 60 billion lower than the current fiscal year’s target.
According to the minister, the total budget deficit for 2026–27 is projected at Tk 2.43 trillion, equivalent to 3.6 percent of the country’s gross domestic product (GDP). To meet this shortfall, the government plans to raise Tk 1.27 trillion from domestic sources and Tk 1.16 trillion from foreign sources. The banking system will provide the largest portion of domestic borrowing.
The reduction in bank borrowing compared to the previous year indicates a modest adjustment in the government’s financing strategy while maintaining reliance on both domestic and external loans to manage fiscal needs.
Bangladesh to borrow Tk 1.12 trillion from banks for 2026–27 budget deficit
The proposed national budget for the 2026–27 fiscal year allocates Tk 880 crore to the Ministry of Expatriates’ Welfare and Overseas Employment, marking a reduction of Tk 51 crore from the previous year. According to the budget structure, Tk 463 crore is designated for operating expenses and Tk 417 crore for development expenditures.
In presenting the budget, the finance minister emphasized the government’s priority on expanding overseas employment and ensuring the welfare and protection of Bangladeshi expatriate workers. A special expatriate card will be introduced to integrate welfare services, insurance, banking facilities, and emergency assistance for migrant workers.
In the 2025–26 fiscal year, the ministry had received an allocation of Tk 931 crore, including Tk 434 crore for operating costs and Tk 497 crore for development spending. The new proposal reflects a shift in expenditure priorities while maintaining focus on expatriate welfare initiatives.
Bangladesh cuts Tk 51 crore from expatriates’ welfare ministry in 2026–27 proposed budget
In the proposed Bangladesh national budget for fiscal year 2026–27, the government has slightly increased the price of low-tier cigarettes while keeping taxes and prices on bidi, gul, and jarda unchanged. According to a joint statement from research and advocacy group PROGGA (Knowledge for Progress) and the Anti-Tobacco Media Alliance (ATMA), this minimal adjustment will make tobacco products cheaper in real terms when inflation and income growth are considered. The organizations warned that the proposal, if passed, could increase tobacco use, related illnesses, and deaths, while depriving the government of potential revenue gains.
The statement detailed that the price of a 10-stick pack of low-tier cigarettes would rise by only 2 taka to 62 taka, a 3.33 percent increase compared to a 10.27 percent rise in per capita income. Prices for mid-, high-, and premium-tier cigarettes would also rise modestly. PROGGA and ATMA argued that the lack of tax structure reform would allow tobacco companies to retain higher profits and expand their business, posing a threat to public health.
The groups urged the government to adopt their reform proposal, which they claim could generate an additional 440 billion taka in revenue and prevent about 400,000 premature deaths annually.
Bangladesh budget keeps tobacco taxes low, raising health and revenue concerns
Finance Minister Amir Khasru Mahmud Chowdhury has proposed increasing Bangladesh’s social safety net allocation to Tk 1,44,338 crore for the 2026–27 fiscal year, up by Tk 17,607 crore from the revised Tk 1,26,731 crore in 2025–26. Presenting the budget on Thursday, he said the goal is to ensure life-cycle-based protection for all citizens to reduce poverty, lessen inequality, and promote inclusive development.
The proposal includes expanding the Family Card program, under which the female head of a family will receive Tk 2,500 monthly. The program aims to reach 4.1 million women next year with Tk 14,500 crore allocated. The minister also proposed increasing old-age, widow, and disability allowances, as well as stipends for students with disabilities. The Mother and Child Assistance Program will expand to 1.9 million beneficiaries with Tk 1,944.7 crore allocated.
Additional measures include raising one-time aid for six critical illnesses to Tk 1 lakh, fare reductions for senior citizens, and continued benefits for freedom fighters and July uprising families. A Tk 300 crore housing allocation for July uprising families was also proposed.
Bangladesh proposes Tk 1.44 trillion for social safety net in 2026–27 budget
Finance Minister Amir Khosru Mahmud Chowdhury has proposed a significant expansion of Bangladesh’s social safety net in the 2026–27 national budget, raising total allocations for the sector to Tk 1,44,338 crore, an increase of Tk 17,607 crore from the previous year’s revised budget. The proposal includes Tk 14,500 crore for the government’s flagship Family Card program, which will provide monthly allowances of Tk 2,500 to 4.1 million women heads of households. The initiative aims to reduce poverty and inequality through economic empowerment and inclusive development.
The minister said the Family Card program, inaugurated by the Prime Minister within a month of the government’s formation, will gradually expand nationwide by 2030. Other proposed measures include higher allowances and expanded coverage for the elderly, widows, persons with disabilities, and pregnant women. The budget also proposes increased assistance for patients with serious diseases and travel concessions for senior citizens.
The proposals reflect the government’s stated goal of building a welfare-oriented and equitable state through life-cycle-based social protection and empowerment programs.
Bangladesh allocates Tk 14,500 crore for Family Card program aiding 4.1 million women
Finance Minister Amir Khosru Mahmud Chowdhury has presented the proposed national budget for the 2026–27 fiscal year in the Jatiya Sangsad. The budget, under the government led by Prime Minister Tareque Rahman, totals Tk 9.38 trillion, which is Tk 1.48 trillion higher than the current fiscal year. The revenue target is set at Tk 6.95 trillion, with a deficit of Tk 2.43 trillion. The proposal includes adjustments in customs duties, VAT, and supplementary duties to boost revenue, protect domestic industries, and address public health concerns.
As a result of these measures, prices are expected to decrease for a wide range of products, including kidney dialysis services, heart stents, cancer medicines, medical equipment, laptops, computers, solar panels, electric vehicles, and locally produced electronics such as mobile phones and refrigerators. Conversely, prices of cigarettes, tobacco products, imported washing machines, alcoholic beverages, and several imported goods like honey, coffee, and tiles are expected to rise.
The proposed budget aims to balance revenue growth with consumer relief and industrial protection, signaling a focus on health, technology, and renewable energy sectors.
Bangladesh budget proposes tax cuts on medical, tech, and green products for 2026–27
Thakurgaon University Vice-Chancellor Professor Dr. Israfil Shaheen announced that the institution will work to achieve international standards in education. He emphasized ensuring transparency in teacher recruitment and all administrative activities, along with planned and accountable infrastructural development. Dr. Shaheen made these remarks on Thursday while addressing a views-exchange meeting at the Ranisankail Press Club.
The meeting, presided over by Press Club President Ashraful Alam, was attended by local educators, political leaders, and journalists. Dr. Shaheen highlighted that building a quality university is not solely the administration’s responsibility and called for cooperation and constructive advice from all sectors of society, including the media. Several participants, including former college principals and political figures, also spoke at the event.
Journalists present at the meeting offered various suggestions for improving the newly established university’s overall development and educational quality. The Vice-Chancellor assured that their recommendations would be considered seriously.
Thakurgaon University to pursue international standards with transparency and community cooperation
Bangladesh’s newly elected Prime Minister has chosen China for her second official foreign visit since forming the new government, according to the Deputy Speaker of the National Parliament. Speaking at the 7th China-South Asia Cooperation Forum in Kunming, Yunnan Province, he said the visit would open a new chapter in bilateral relations and strengthen the countries’ comprehensive strategic partnership.
The Deputy Speaker highlighted the historical foundation of Bangladesh-China diplomatic ties, crediting late President Ziaur Rahman for initiating relations through visits in 1977 and 1980. He also recalled former Prime Minister Begum Khaleda Zia’s visits in 1991 and 2002, which further deepened friendship between the two nations. Emphasizing regional cooperation, he called for revitalizing SAARC as an effective platform for peace and development and suggested that China, as an observer, could play a constructive role.
During the forum, Bangladesh’s parliamentary delegation met Chinese leaders to discuss cooperation in agriculture, education, health, infrastructure, and industry. Chinese officials reaffirmed their commitment to working with Bangladesh’s democratic government and expressed interest in visiting Bangladesh soon.
Bangladesh Prime Minister to visit China for second official trip to boost bilateral ties
Finance Minister Amir Khosru Mahmud Chowdhury has proposed a Tk 5,000 increase in the monthly allowance for families of gallantry awardee freedom fighters in the 2026–27 fiscal year budget. The proposal was made during the presentation of a Tk 9.38 trillion national budget in parliament, under the social security and inclusive development programs.
According to the proposal, the monthly allowance would rise to Tk 40,000 for Bir Shreshtha families, Tk 30,000 for Bir Uttam, and Tk 25,000 for both Bir Bikram and Bir Protik families. The monthly honorarium for general freedom fighters would remain unchanged at Tk 20,000. The minister said the initiative aims to strengthen the financial security of families who contributed to the Liberation War.
The budget also includes expanded social safety measures such as increased disability allowances, extended family card coverage, and higher one-time assistance for patients with six critical diseases, raising the amount from Tk 50,000 to Tk 100,000. A total of Tk 1.44 trillion has been proposed for the social security sector in the upcoming fiscal year.
Bangladesh proposes Tk 5,000 rise in monthly allowance for gallantry awardee freedom fighter families
Bangladesh’s National Board of Revenue has proposed amendments to the Income Tax Act 2023 requiring proof of income tax return submission for opening bank accounts and purchasing motorcycles of 150cc or higher capacity. The same requirement will apply to buying three-wheeler motor vehicles. However, foreign nationals serving as company directors or sponsors would be exempted from the return submission obligation under the proposed changes.
The amendment adds bank accounts and motorcycles to the list of services and goods that require tax return proof under Section 264 of the Income Tax Act. Exceptions will apply to student accounts, no-frills accounts, and others exempted by government notification. No-frills accounts, designed for low-income individuals, will remain accessible with minimal documentation and no mandatory deposit requirements.
The proposal also mandates educational institutions with return obligations to show proof of submission when renewing approvals. The NBR initially considered imposing advance income tax on motorcycles but withdrew the plan following opposition from riders and lack of government approval. The revised proposal focuses instead on ensuring tax compliance through return documentation.
Bangladesh proposes mandatory tax return proof for bank accounts and motorcycle purchases
Bangladesh’s opposition party Jamaat-e-Islami announced that it will deliver its formal response to the proposed national budget for the 2026–27 fiscal year on Monday. The party will hold a press briefing at its central office in Moghbazar on Friday at 11:30 a.m., where central leaders will present Jamaat’s position and observations on the budget.
In a separate announcement, the Dhaka North unit of Jamaat said it will organize a rally on Thursday evening to give an immediate reaction to the budget. The rally is scheduled to start at 7 p.m. in front of Uttara Badda Kamil Madrasa. The budget, amounting to Tk 9.38 trillion, was presented in the National Parliament on Wednesday by Finance Minister Amir Khosru Mahmud Chowdhury.
According to Jamaat’s media wing, the Friday briefing will serve as the party’s official platform to outline its assessment of the proposed budget and its implications for the country’s economy.
Jamaat-e-Islami to rally Thursday and brief media Friday on 2026–27 budget response
Finance Minister Amir Khasru Mahmud Chowdhury has proposed increasing the monthly disability allowance to Tk 1,000 in the 2026–27 fiscal year budget. Currently, 3.45 million people receive Tk 900 each month under this program. The minister also proposed expanding the number of beneficiaries to 3.8 million.
In his budget speech in the National Parliament, the finance minister said that the number of disabled students receiving stipends would rise from 81,000 to 100,000. Their monthly stipends would range from Tk 1,000 to Tk 1,400 depending on educational level. The proposal is part of the government’s broader social safety net initiatives.
The budget allocates Tk 1,44,338 crore for the social safety sector in 2026–27, compared to Tk 1,26,731 crore in the revised budget for 2025–26, reflecting an increase in social welfare spending.
Bangladesh proposes raising disability allowance to Tk 1,000 and expanding coverage
The government of Bangladesh has announced a new social protection program to modernize and climate-proof the agriculture sector. In the 2026–27 fiscal year, 4.25 million landless, marginal, and small farmers across 100 upazilas will receive special 'Farmer Cards'. Each cardholder will get Tk 2,500 in annual cash support and access to ten additional benefits. Finance Minister Amir Khosru Mahmud Chowdhury made the announcement while presenting the national budget in parliament, chaired by Speaker Major (Retd.) M Hafizuddin.
The budget proposes an allocation of Tk 1,062.5 crore for the Farmer Card initiative, extending coverage to fishers, livestock farmers, and salt producers. A pre-pilot involving 22,065 farmers in 11 blocks across eight divisions has already been completed. The government has also implemented a loan waiver program for up to Tk 10,000 in agricultural loans and plans to introduce agricultural insurance to mitigate disaster risks.
The combined allocation for agriculture, fisheries, and food ministries in 2026–27 stands at Tk 43,335 crore, representing 0.63 percent of GDP, marking a steady increase from previous years.
Bangladesh unveils Tk 1,062 crore farmer card scheme for 4.25 million smallholders
Bangladesh’s finance minister has proposed allocating Tk 500 crore in the 2026–27 fiscal year budget to encourage new entrepreneurs in the information technology sector. The announcement was made on Thursday, June 11, during the minister’s budget speech in the National Parliament.
According to the minister, the proposed fund will serve as a ‘start-up fund’ aimed at promoting women’s entrepreneurship, women’s development, and youth entrepreneurship. The initiative reflects the government’s recognition of the IT sector’s potential and its intention to foster innovation and business growth among emerging entrepreneurs.
If approved, the allocation is expected to support the creation of new technology-based enterprises and strengthen the country’s digital economy by empowering young and female entrepreneurs.
Bangladesh proposes Tk 500 crore startup fund for new IT entrepreneurs
Bangladesh’s Finance Minister Amir Khasru Mahmud Chowdhury has proposed a Tk 42,291 crore allocation for the defense sector in the 2026–27 fiscal year budget. The proposal, presented in the National Parliament on Thursday, marks an increase of Tk 1,593 crore from the revised allocation of Tk 40,502 crore in the outgoing 2025–26 fiscal year. The total proposed national budget amounts to Tk 9,38,000 crore.
According to the proposal, Tk 38,721 crore is earmarked for operating expenses of defense services, Tk 1,611 crore for development expenditure, and Tk 1,959 crore for operating costs of other services under the Ministry of Defense. The session was presided over by Speaker Hafiz Uddin Ahmed and marked the first budget presentation by the BNP government and Finance Minister Amir Khasru Mahmud Chowdhury.
This is the 55th national budget of Bangladesh, reflecting the new government’s fiscal priorities and expenditure plans for the upcoming year.
Bangladesh raises defense allocation by Tk 1,593 crore in 2026–27 national budget
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