Amid political turmoil, administrative paralysis, and electoral uncertainty following the July upheaval, the interim government is set to announce the national budget for the 2025–26 fiscal year today. While officials are presenting it as an “austerity budget,” economists argue it largely follows the traditional patterns of previous years.
At 3 PM today, Economic Adviser Salehuddin Ahmed will unveil the new budget, which will be broadcast live on BTV and private television channels, as Parliament remains inactive. In the absence of a functioning legislature, the budget will be implemented through a presidential ordinance, scheduled to be signed on June 30.
The proposed budget size is set at BDT 7.89 trillion—BDT 700 billion less than the original budget for the current fiscal year—marking the first time since independence that the national budget has shrunk in size compared to the previous year. The budget deficit is projected at BDT 2.26 trillion, equivalent to 3.62% of GDP.
To finance this deficit, the government plans to rely on domestic sources like bank borrowing and savings instruments, as well as foreign loans. The budget also sets an ambitious GDP growth target of 5.5%, up from the revised 5.25% for the current year. Inflation is expected to be brought down to 7%, although it remains unclear what strategies—beyond adjusting interest rates—will be deployed to achieve this.
To ease the financial burden on low-income populations, the government is expected to expand its social safety net programs, increasing both the number of beneficiaries and the amount of allowances provided. Priority sectors in the new budget include agriculture, health, education, and technology.
This marks the first budget to be announced outside Parliament since 2008, during the military-backed caretaker government. Sixteen years later, Bangladesh again finds itself presenting a national budget outside the democratic process—signaling a new fiscal reality shaped by exceptional political circumstances.
