Bangladesh revises budget to raise revenue target by Tk 240bn

Tk 7.88 trillion has been approved for revised fiscal plan this year

The interim government has sanctioned a revised budget of Tk 7.88 trillion for the current fiscal year, reducing the original size by Tk 20 billion while raising the revenue collection target by Tk 240 billion.

It was approved at a meeting of the Advisory Council on Wednesday, presided over by Chief Advisor Muhammad Yunus at his Tejgaon office.

His Press Secretary Shafiqul Alam later briefed the media at the Foreign Service Academy in Dhaka.

The government had initially set a spending target of Tk 7.9 trillion for FY2026.

Shafiqul said revenue collection has picked up pace this year. “Between July and October, revenue growth reached 26.4 percent, compared with 24.1 percent in the same period last year.”

Against this backdrop, the total revenue target for the current fiscal year has been raised from Tk 5.64 trillion to Tk 5.88 trillion, he added.

Of the revised target, Tk 5.03 trillion is expected to be collected through the National Board of Revenue (NBR).

Non-tax revenue is projected at Tk 650 billion, while Tk 200 billion is expected from sources outside the NBR.

Alongside overall expenditure, the size of the revised Annual Development Programme (ADP) has also been cut by Tk 300 billion to Tk 2 trillion, equivalent to 3.3 percent of GDP.

In the original budget, the ADP stood at Tk 2.03 trillion, or 3.7 percent of GDP.

Shafiqul said the revised budget places the fiscal deficit at Tk 2 trillion, equal to 3.3 percent of GDP.

Of this amount, Tk 630 billion will be financed from foreign sources, while Tk 1.37 trillion will come from domestic sources.

INFLATION

The press secretary said inflation is expected to ease towards the end of the fiscal year. “The revised budget assumes a further decline in inflation, particularly as winter vegetables are now available.

“Toward the end of last year, food inflation rose to as high as 14 percent. It has now fallen to around 7 percent.”

He added that overall inflation is projected to decline to 7 percent, while GDP growth is expected to reach 5 percent.

CA’S BUDGET DIRECTIVES

The press secretary also outlined a set of policy directions given by Chief Advisor Yunus in relation to the budget.

He said Yunus has urged a stronger focus on self-reliance, calling for a gradual shift away from “unnecessary” foreign borrowing and towards greater use of domestic financing for development projects.

Education, particularly the quality of education, has been identified as a top priority, alongside rural development. With farmers producing a record volume of food grains this year, the budget is expected to place greater emphasis on improving rural livelihoods.

According to Shafiqul, the chief advisor has also directed policymakers to place stronger focus on young people, describing Bangladesh as a country with a vast youth population, and to expand budgetary attention on women’s empowerment.

In addition, the press secretary said, greater emphasis has been placed on boosting local production and strengthening the health sector.