Tk256,000 crore budget deficit proposed in FY25

Finance Minister Abul Hassan Mahmood Ali has proposed a budget deficit of Tk256,000 crore in the budget for FY25.

Ali made the proposal while placing the budget for FY25 at Jatiya Sangsad on Thursday.

"In the proposed budget for FY 2024-25, the estimated deficit will stand at Tk2,56,000 crore, which is 4.6 percent of GDP. The deficit was estimated to be 5.2 percent in the previous budget," he said.

Ali also said, "Within the total proposed budget deficit, I propose Tk1,60,900 billion from domestic sources and Tk95,100 billion from foreign sources for financing."

He said that the prudent and pragmatic macroeconomic policy has kept the country's debt management relatively risk-free, as mentioned in the reports of International Monetary Fund.

"Despite the increase in expenditure for loan and interest payment due to the depreciation of foreign currency over the past two years, our deficit and borrowing will remain sustainable in our overall budget," he added.