Finance Minister starts unveiling FY26-27 budget

Finance Minister Amir Khasru Mahmud Chowdhury has started placing the national budget –with a financial outlay of Tk9.38 lakh crore – for the fiscal year 2026-27 in Parliament, mapping out a strategy targeted at stabilisation and fiscal reform.

This is the first budget of the current BNP government after it took office through the 12 February general election.

Earlier, the Cabinet approved the proposed national budget for the fiscal year 2026-27 at a special meeting held at the Jatiya Sangsad Bhaban.

The meeting was chaired by Prime Minister Tarique Rahman in the Cabinet Room of the Jatiya Sangsad Bhaban, said Prime Minister's Additional Press Secretary Atikur Rahman Rumon.

Finance Minister Amir Khasru Mahmud Chowdhury and other ministers and state ministers attended the meeting that began at about 10:00am and ended around 1:00pm.

According to high-level treasury sources, the government has set an ambitious overall revenue mobilisation target of Tk 6.95 lakh crore to fund the massive public expenditure.

Out of the total revenue target, the National Board of Revenue (NBR) has been given the task of collecting Tk 6.04 lakh crore. Additionally, Tk 25,000 crore is expected to come from non-NBR tax sectors, while non-tax revenue (NTR) sources are projected to yield Tk 66,000 crore.

A major portion of the resource allocation will be consumed by debt servicing obligations.

The government has earmarked Tk1.27 lakh crore solely for interest payments on loans. Of the amount, Tk 1.05 lakh crore will go towards servicing domestic debt, while foreign loan interest payments will require Tk 22,500 crore.

The draft proposal estimates the overall budget deficit at Tk 2.43 lakh crore. To bridge this significant fiscal deficit, the government plans to borrow Tk 1.09 lakh crore from foreign funding sources.

For domestic deficit financing, the administration will heavily rely on the country's banking system, planning to borrow Tk 1.12 lakh crore from commercial banks.

The remaining gap of Tk 15,000 crore is projected to be met through the sales of national savings certificates.