Tk 7.88 trillion revised budget unveiled in parliament

In a decisive move to stabilise the national economy amid persistent global volatility, the government of Bangladesh has formally proposed a revised national budget for the 2025-26 fiscal year, scaling back total public expenditure by Tk 20 billion. The adjusted fiscal blueprint, now standing at Tk 7.88 trillion, underscores a strategic shift towards administrative austerity, critical adjustments to energy subsidies, and the protection of vulnerable demographic groups.

Addressing the thirteenth Parliament during the seventh day of its second session on Monday, Finance and Planning Minister Amir Khosru Mahmud Chowdhury unveiled the supplementary budget. The revised framework projects a budget deficit of Tk 2 trillion, representing a carefully managed 3.3 per cent of the nation’s Gross Domestic Product (GDP).

The initial budget for the current fiscal year had projected an expenditure of Tk 7.9 trillion. However, the Finance Minister attributed the reduction to a deceleration in the implementation of the Annual Development Programme (ADP), which largely stemmed from the transitional pre-election period.

With the new government now firmly in place, the immediate priority has pivoted towards economic revitalisation. To navigate underlying domestic vulnerabilities and external market shocks, the administration has introduced stringent measures to curtail wasteful public spending. The revised fiscal strategy strictly limits allocations to non-essential sectors while enforcing comprehensive administrative frugality across all government departments.

Crucially for the domestic energy landscape, this recalibration heavily factors in the ongoing restructuring of power and fuel subsidies. The government has balanced the fiscal weight of these energy sector adjustments by concurrently expanding vital social safety net programmes. This includes broadened access to Family and Farmer Cards, alongside new financial honorariums for religious clerics, including imams, priests, and muezzins. The supplementary budget effectively harmonises the financial shortfall generated by these critical grassroots initiatives with broader state expenditures.

Following the Minister’s presentation, the Speaker of the House initiated the formal voting procedure on the demands for grants, meticulously excluding charged expenditures. Article 89 of the Constitution stipulates that, while such charged expenditures are subject to parliamentary debate, they remain exempt from the voting process.

The supplementary budget encompasses a total of 25 demands for grants. In response, the parliamentary opposition has mounted significant scrutiny, with 20 opposition Members of Parliament submitting a collective 304 cut motions.

Given the constraints of the parliamentary timetable, the House resolved to concentrate its debate on the cut motions targeting eight pivotal ministries and divisions. These include the Ministry of Finance, the Planning Division, the Ministry of Commerce, the Ministry of Science and Technology, the Local Government Division, the Ministry of Water Resources, the Ministry of Food, and the Anti-Corruption Commission (ACC). The House will resolve the remaining grant demands through direct parliamentary voting, paving the way for implementing this stringent, recovery-focused fiscal roadmap.