The government is preparing a Tk 927,000 crore budget for fiscal 2026-27, up about 18 percent from this year, as it looks to implement its electoral pledges, partially roll out the Pay Commission recommendations, and shield the economy from the fallout of the ongoing Middle East conflict.
The preliminary framework for the upcoming fiscal year’s budget was finalised at a high-level meeting chaired by Finance Minister Amir Khosru Mahmud Chowdhury on Friday night, before he left for Washington DC to attend the World Bank-IMF Spring Meetings.
The final budget for next fiscal year is unlikely to veer too far off from the Tk 927,000 crore-mark and will definitely be more than Tk 900,000 crore, The Daily Star has learnt from finance ministry officials involved with the proceedings.
“This budget carries special weight as it is this government’s first -- it will signal the administration’s priorities and lay the financial groundwork for delivering on its five-year commitments,” said a senior finance ministry official, requesting anonymity.
The higher allocation is being made to accommodate the BNP’s electoral pledges to provide several welfare benefits to the poor and low-income people such as Family Card, Farmers’ Card and agricultural loan waiver as well as to implement the recommendations of the ninth Pay Commission, and to cushion the economy from the oil price shock triggered by the US-Israel war on Iran.
The development budget would be in the neighbourhood of Tk 300,000 crore, up from Tk 200,000 crore this year, as the new democratically elected government looks to jumpstart the economy after two years of political uncertainty.
The revenue collection target has been set at an ambitious Tk 690,000 crore, of which Tk 620,000 crore would be borne by the National Board of Revenue.
The revised budget for this fiscal year had set the revenue target at Tk 588,000 crore, including Tk 503,000 crore from the National Board of Revenue -- projections that officials acknowledge will fall short.The budget deficit has been set at around 5 percent.
This is expected to deliver a GDP growth of 6.5 percent and contain inflation within 7.5 percent in fiscal 2026-27.
The interim government had set a GDP growth target of 5 percent and an inflation target of 7 percent for this fiscal year.
