Bangladesh unveils Tk 7.9tn FY26 budget, deficit target 3.6% of GDP

The Bangladesh government has set out a Tk 7.9 trillion budget for the 2025-26 fiscal year, equivalent to 12.7 percent of the country's gross domestic product (GDP).

Finance Advisor Salehuddin Ahmed announced the draft of the budget in a speech on Monday, broadcast on state-run BTV and other private networks.

Of the total outlay, Tk 5.60 trillion will be reserved for operating and other expenditures, while Tk 2.30 trillion will be allocated for the Annual Development Programme (ADP).

To cover this spending, the interim government has set a revenue collection target of Tk 5.64 trillion, which is 9 percent of GDP. Of this amount, Tk 4.99 trillion is to be collected through the National Board of Revenue, while another Tk 650 billion will be collected from other sources.

This means the deficit for the budget will amount to Tk 2.26 trillion, which is 3.6 percent of GDP. Of this amount, Tk 1.25 trillion will be raised from domestic sources, while another Tk 1.01 trillion is to come from external sources.

In addition, an estimated Tk 1.22 trillion will go towards interest payments.