The proposed budget for Bangladesh’s 2025–26 fiscal year forecasts a significant deficit of Tk 2,26,000 crore—equivalent to 3.62% of the country’s GDP. To bridge the gap, the government plans to borrow heavily, with Tk 1,01,000 crore expected from foreign sources and Tk 1,25,000 crore from domestic channels, including banks.
Finance Advisor Dr. Salehuddin Ahmed unveiled the budget on June 2, noting that while some economic stability has been achieved, formidable challenges persist. Emphasizing sustainability over rapid growth, he stressed the importance of strengthening the economy’s foundation.
The government’s increasing reliance on domestic borrowing is evident. As of May 21, it had already borrowed Tk 60,000 crore from banks—an almost fivefold jump from the Tk 13,571 crore recorded in January. Shortfalls in revenue collection, reduced sales of savings certificates, and a decline in foreign debt relief have all contributed to the growing dependency on bank loans.
This year’s budget is set at Tk 790,000 crore—down from last year’s Tk 797,000 crore—marking the first time Bangladesh has reduced its budget size. Economists view this cut as a pragmatic move given current fiscal constraints. The revenue target is pegged at Tk 499,000 crore.
Dr. Ahmed reiterated the government’s long-term vision: to create an inclusive, equitable economy where every citizen enjoys a decent quality of life. He expressed hope that, with nationwide cooperation, Bangladesh could emerge as a global model of stable and inclusive economic development.
