Bangladesh finance minister Amir Khasru Mahmud Chowdhury has said that preparations for the national budget for FY2026–27 were under way, with emphasis placed on building a sustainable, transparent and inclusive economic framework rather than focusing solely on growth.
He said the government was taking steps to restore discipline across key sectors of the economy while responding to mounting domestic and global pressures, and that policy direction would prioritise transparency, accountability and institutional integrity.
The minister on Friday made the remarks in a statement under Rule 300 during the 13th day of the first session of the 13th Jatiya Sangsad.
Khasru said that the government aimed to place the economy on a more progressive and stable footing, balancing development needs with fiscal responsibility amid an increasingly uncertain global environment.
The finance minister said the government’s immediate economic priorities included bringing inflation down to 5–6 per cent to ease pressure on households, modernising and expanding tax administration through automation, and recovering laundered assets through ongoing international cooperation with global organisations.
He said investment climate reforms were also being prioritised, particularly for small and medium enterprises, which he described as a key driver of employment and economic growth. Measures, he noted, included easier access to credit, improved business conditions and more affordable financing.
Khasru said that greater emphasis was being placed on social protection and human development, with increased allocations planned for education, health and broader welfare programmes.
On capital markets, he said the government intended to strengthen their role in capital formation through regulatory reforms, including enhancing the independence of the securities regulator, taking legal action against market manipulation, and investigating irregularities over the past 15 years through a special commission.
Khasru said efforts were under way to diversify the market through instruments such as corporate bonds, sukuk and green bonds.
He reiterated that the government’s long-term goal was to transform Bangladesh into a trillion-dollar economy by 2034 through sustained investment, higher production, job creation and expanded consumption.
Referring to recent global developments, he said geopolitical tensions in the Middle East, including the Iran—Israel conflict, had heightened uncertainty in global energy markets, disrupted supply chains and weakened international trade stability shortly after the government assumed office.
Khasru said that international prices of crude oil and LNG had more than doubled, leading to a sharp rise in import costs.
He cautioned that the government would need to provide an additional Tk 360 billion in subsidies for electricity, energy and LNG between March and June of the current fiscal year, which could widen the budget deficit and put pressure on foreign exchange reserves, with nearly $3 billion required for import payments.
On revenue policy, the finance minister said the government was prioritising transparency and good governance in tax collection under a broader social contract approach.
He said this framework was based on ensuring transparency in revenue collection, making public benefits from government spending more visible, and pursuing forward-looking fiscal policies.
Khasru said that the objective was to raise the tax-to-GDP ratio to 15 per cent by 2034, reduce dependence on borrowing, and strengthen development financing through improved revenue performance.
He further said efforts were under way to make the tax system more citizen-friendly in order to encourage compliance and expand the tax base.
On public debt management, the finance minister said the government was focusing on prudent borrowing strategies, including greater reliance on concessional external financing and the development of the domestic bond market.
He said efforts were also under way to better align deficit financing sources in order to reduce borrowing risks. He added that increasing the share of development projects financed from revenue resources would help reduce debt dependence over time and create additional fiscal space.
Khasru said that macroeconomic planning frameworks, including the medium-term budget framework and the medium-term macroeconomic framework, were being strengthened through the development of a dynamic macro-fiscal model.
This, he noted, would support more realistic sectoral allocations and guide Bangladesh’s long-term transition towards a trillion-dollar economy.
On financial sector reforms, Khasru proposed legal and institutional changes were being considered to strengthen the central bank and improve governance in commercial banking.
He said that immediate attention had been given to addressing capital shortfalls in the banking sector and restoring discipline comparable to earlier periods of stability.
The finance minister said the government was progressing with key election pledges, including the rollout of five million family cards, a farmer card scheme for agricultural workers, and the implementation of agricultural loan waivers of up to Tk 10,000 including interest.
He said wider commitments included the creation of 10 million jobs through ICT expansion, infrastructure modernisation, and growth in the blue economy, alongside the development of regional innovation hubs expected to generate a further 500,000 jobs.
He also noted plans to introduce a ‘Made in Bangladesh’ brand for global markets and to gradually raise the tax-to-GDP ratio to 10 per cent in the medium term and 15 per cent by 2035 as part of fiscal consolidation efforts.
