Bangladesh is preparing to unveil its largest-ever national budget, with the government finalising a proposed outlay of Tk9.38 lakh crore for the 2026-27 fiscal year despite mounting fiscal pressures, revenue shortfalls and growing dependence on borrowing.
The budget, expected to be presented in Parliament on 11 June, will be the first national budget of Prime Minister Tarique Rahman’s BNP-led coalition government and Finance Minister Amir Khosru Mahmud Chowdhury.
While the proposal reflects the government's ambitious development and welfare agenda, economists have expressed concerns over its implementation, citing weak revenue collection, sluggish economic activity and increasing debt obligations.
According to Finance Division sources, the proposed budget is nearly 19 per cent larger than the current fiscal year's Tk7.90 lakh crore budget. To support the expenditure plan, the government has set an ambitious revenue collection target of Tk6.95 lakh crore. However, a projected deficit of Tk2.43 lakh crore means a significant portion of spending will have to be financed through domestic and foreign borrowing.
The draft budget places strong emphasis on social protection, education, healthcare, food security and employment generation, aligning with the government's election commitments and its “Bangladesh First” development vision.
Officials said the budget identifies 13 priority areas, including inflation control, economic recovery, social safety net expansion, agricultural support, financial sector reforms and implementation of flagship programmes such as the Family Card and Farmer Card initiatives.
The government has also approved a Tk3 trillion Annual Development Programme (ADP) for FY2026-27. Major allocations have been earmarked for transport and communication, power and energy, healthcare, education, agriculture, housing and climate resilience projects.
To finance the deficit, the government plans to borrow Tk1.12 trillion from banks, Tk150 billion from non-bank sources and another Tk1.16 trillion from foreign lenders. The financing strategy comes at a time when foreign debt repayments are expected to reach Tk460 billion during the next fiscal year.
The budget projects GDP growth of 6.5 per cent, higher than the current year's 5.5 per cent target, although international agencies have forecast growth below 5 per cent this year.
Social protection remains one of the key spending priorities. Proposed allocations for welfare programmes are expected to rise to nearly Tk1.38 trillion from about Tk1.26 trillion in the current fiscal year. The funding will support old-age allowances, widow benefits, disability support, maternal and child welfare programmes, employment schemes and poverty reduction initiatives.
Among ministries and divisions, the Secondary and Higher Education Division is set to receive the highest allocation at approximately Tk573.02 billion. The Health Services Division follows with a proposed allocation of Tk493.89 billion, almost double the current level, reflecting the government's increased focus on human development and public welfare.
Officials said the budget is designed to support Bangladesh’s long-term goal of becoming a $1 trillion economy by 2034, though its success will depend heavily on revenue mobilisation, investment growth and effective management of borrowing pressures.
