Budget deficit projected at Tk 2,43,000 crore

Finance Minister Amir Khosru Mahmud Chowdhury has said that the deficit in the proposed budget for the 2026-27 fiscal year will be Tk243,000 crore, which is 3.6 percent of GDP.

He gave this information in his budget speech in the National Parliament on Thursday (June 11) afternoon.

The Finance Minister said that out of the total deficit, it will be proposed to meet Tk127,000 crore from domestic sources and Tk116,000 crore from foreign sources.

Out of the domestic debt, Tk112,000 crore will be met from the banking system, which is Tk6,000 crore less than the current 2025-26 fiscal year.

He said, 'Due to the massive borrowing during the fascist government, the country's debt repayment and interest payment expenses have increased excessively. Therefore, the budget deficit has also increased. In the 2005-06 fiscal year, the budget deficit was 2.9 percent of GDP; on the other hand, it increased to 4.05 percent in the 2023-24 fiscal year.'

Describing the way out of this situation, the Finance Minister said, 'We are reforming debt management, government investment in high-return sectors and modernizing the project implementation framework. Through this, the quality of investment will be ensured, the flow of money will increase and its multiplier effect will make economic activities more dynamic.'