Bangladesh’s parliament on Tuesday passed a Tk 9.38 trillion national budget for the 2026-27 fiscal year, clearing the country’s largest-ever spending plan after three weeks of debate, criticism and a series of key amendments.
The budget, which will take effect from July 1, was approved by a voice vote during a sitting chaired by Speaker Hafiz Uddin Ahmed. It is the 55th national budget and the first presented by the BNP-led government following its victory in this year’s general election.
Finance and Planning Minister Amir Khosru Mahmud Chowdhury unveiled the budget on June 11, after which lawmakers held extensive discussions on its revenue targets, taxation, inflation, social protection and sectoral allocations.
Before the budget’s final approval, parliament on Monday passed the Finance Bill 2026, incorporating 68 amendments, including several significant tax concessions and the withdrawal of some controversial proposals.
Among the most notable changes was the increase in the tax-free income threshold to Tk 400,000.
The government also scrapped a proposed restriction on registering land and apartments at prices below officially assessed values, a provision that had drawn widespread criticism.
In addition, the government withdrew plans to impose new value-added tax (VAT) on three sectors. The revised measures were incorporated into the Finance Bill before its passage.
In his closing speech, Amir Khosru Mahmud Chowdhury said the government had revised several provisions after considering recommendations and observations made by lawmakers during the budget debate.
Members of the ruling BNP, Jamaat-e-Islami, the National Citizen Party (NCP), independent MPs and opposition lawmakers participated in the discussions, raising concerns over taxation, inflation, revenue mobilisation and public expenditure.
Ahead of the budget vote, ministers placed 59 demands for grants to finance their respective ministries, all of which were approved by voice vote.
Opposition lawmakers submitted 1,342 cut motions against the expenditure proposals, but all were rejected. Parliament subsequently passed the Appropriation Bill 2026, formally authorising government spending for the new fiscal year.
The approved budget is Tk 148 billion larger than the original Tk 8.90 trillion budget for FY2025-26.
The government has set a revenue collection target of Tk 6.95 trillion, including Tk 6.04 trillion to be collected by the National Board of Revenue (NBR).
The budget projects a fiscal deficit of Tk 2.43 trillion, equivalent to 3.6% of gross domestic product (GDP).
For the new fiscal year, the government aims to reduce inflation to 7.5 percent while achieving 6.5 percent GDP growth.