BNP's first budget in 20 years: Amir Khosru unveils Tk 9.38 lakh crore budget
Finance Minister Amir Khosru Mahmud Chowdhury today unveiled a Tk 9.38 lakh crore budget for the 2026-27 fiscal year in parliament, setting out plans to stabilise, revive and ultimately put the economy on a higher growth trajectory.
The fiscal plan, his first as finance minister, is 19 percent larger than the original Tk 7.90 lakh crore budget for the current fiscal year.
For all latest news, follow The Daily Star's Google News channel. The government said it aims to build a discrimination-free and inclusive economy by ensuring fair participation and partnership across all sections of society, sectors and regions.
The budget comes at a time of considerable economic strain. The National Board of Revenue (NBR) fell more than Tk 1 lakh crore short of its collection target by April, while non-performing loans in the banking sector stood at 30.60 percent at the end of December 2025.
The closure of the Strait of Hormuz amid wider conflicts in the Gulf has also dealt a fresh blow, adding an estimated $3 billion to Bangladesh’s energy import bill in just four months.
To finance the new budget, the first presented by a BNP government in two decades, Khosru proposed raising Tk 6.95 lakh crore in revenue, 23 percent higher than the original target for the outgoing fiscal year.
Of that amount, the NBR has been tasked with collecting Tk 6.04 lakh crore. Although this represents a 17 percent increase from the target for the current year, it is widely seen as a formidable challenge given the present pace of revenue collection.
The finance minister plans to secure the remaining Tk 2.43 lakh crore through domestic and foreign borrowing, as well as grants from external development partners. The budget deficit is projected at 3.6 percent of gross domestic product for the 2026-27 fiscal year.
The government aims to spend Tk 3.16 lakh crore on development programmes next year, 29 percent more than the original allocation for the outgoing fiscal year.
Overall, the budget amounts to 13.7 percent of the GDP projected for 2026-27.
Khosru said the budget has been framed around 10 priorities, with the aim of accelerating economic growth to 6.5 percent and bringing inflation down to 7.5 percent after prolonged price pressures eroded the living standards of much of the population.
The first two priorities are development for all, and quality education and healthcare for all.
The finance minister also outlined a 3R strategy to revive the economy and support Bangladesh’s ambition of becoming a $1 trillion economy.
The 3R strategy comprises Recovery and Stabilisation, Restoration, and Reconstruction for Acceleration.
The government plans to implement it in three phases over a period of one to five years.
The Daily Star is following the parliamentary session live. Scroll down for the latest updates.
05:30pm
Govt proposes another Tk 300cr for creative economy
The government plans to spend a total of Tk 800 crore on the country's creative economy, with Finance Minister Amir Khosru Mahmud Chowdhury today proposing an additional Tk 300 crore allocation for the sector.
Presenting the national budget, he said another Tk 500 crore would be mobilised from Bangladesh Bank's corporate social responsibility fund.
04:40pm
Govt spending Tk 40,000 crore this fiscal year to rescue weak banks
Finance Minister Amir Khosru Mahmud Chowdhury today said the government is spending around Tk 40,000 crore in the current fiscal year to recapitalise weak banks as part of a broader effort to restore discipline and stability to the financial sector.
While presenting the national budget for FY2026-27 in parliament, he said restoring the economy and sustaining private investment are among the government’s medium-term priorities.
04:35pm
Budget duty tweaks bring mixed bag for consumers
Finance Minister Amir Khosru Mahmud Chowdhury today proposed a broad range of changes to import, customs, and regulatory duties in the national budget for fiscal year 2026-27, which could push prices up or down across a wide range of goods.
Experts caution that the actual effect on consumer prices will depend not only on the tax adjustments but also on supply chains, demand, and trader pricing decisions, meaning price movements may not always be proportionate to duty changes.
04:30pm
Govt unveils plan for ‘sports villages’ in all 64 districts
The government has announced plans to establish “sports villages” in all 64 districts as part of a broader strategy to strengthen Bangladesh’s sporting infrastructure and secure the country a recognised position in global sports by 2030.
Presenting the national budget for FY2026-27 in parliament today, Finance and Planning Minister Amir Khosru Mahmud Chowdhury said preliminary designs for sports villages have already been prepared in 10 districts.
4:30pm
Tech, taxes, and talent: Inside the new national budget
The government is set to unveil a wide-ranging set of measures in the new budget aimed at boosting human capital, expanding digital services, and supporting businesses, while also easing the cost of living and promoting green growth.
04:05pm
Imported cars set to become costlier
Imported cars popular among middle-income buyers are likely to become more expensive as the government moves to discourage fossil fuel-powered vehicles and promote electric vehicles (EVs).
In the proposed budget for fiscal year 2026-27, the finance minister has suggested raising the total tax on imported petrol and diesel cars with engine capacities between 1,200cc and 1,600cc to 155.88 percent, up from 132.36 percent.
03:55pm
Duty cuts aim to boost EV adoption
The government plans to extend tax incentives for electric buses and trucks until June 30, 2030, in the proposed budget for fiscal year 2026-27. The move is aimed at reducing pollution and improving energy security.
It also proposes lowering taxes on imported electric vehicles (EVs). For vehicles priced up to $25,000, the total tax burden will drop to 64 percent from 93 percent. For EVs priced up to $50,000, it will come down to 80 percent.
03:50pm
TIN certificate likely to be made mandatory for opening bank accounts
The government has proposed making a tax identification number (TIN) certificate mandatory for opening bank accounts in the upcoming national budget for the 2026-27 fiscal year.
03:40pm
Govt plans bond market push to cut reliance on bank lending
The government plans to strengthen Bangladesh's capital market and develop alternative financing sources in the budget for fiscal year 2026-27, aiming to reduce the economy's heavy dependence on bank lending.
Finance and Planning Minister Amir Khosru Mahmud Chowdhury is expected to propose a shift from a debt-driven economy to one led by investment and foreign direct investment (FDI) in the proposed budget.
03:35pm
Businesses may get licences within 7 days under single-window plan
Businesses may get licences within seven days under a proposed single-window initiative in Bangladesh's budget for fiscal year 2026-27, bringing all approval and licensing procedures under a mandatory online platform.
Under the proposal, the entire process — from application submission to licence issuance — would be completed within seven days, said Finance Minister Amir Khosru Mahmud Chowdhury today.
03:30pm
Govt bank borrowing target set at Tk 112,000 crore for FY27
The government has proposed borrowing Tk 112,000 crore from the banking sector in the upcoming 2026-27 fiscal year to finance its budget deficit.
While presenting the national budget for FY2026-27 in parliament today, Finance Minister Amir Khosru Mahmud Chowdhury said the budget deficit for FY27 has been estimated at Tk 243,000 crore, equivalent to 3.6 percent of the country's gross domestic product (GDP).
03:00pm
Amir Khosru Mahmud Chowdhury starts budget speech.
01:00pm
Govt may cut share settlement time gradually
The government, in today’s proposed budget, is expected to announce a gradual reduction in share trading settlement time in the stock market, aiming to enhance market liquidity.
Settlement will be brought down from the current T+2 to T+0 in phases.
12:50pm
Cabinet approves proposed budget for FY2026-27
The proposed national budget for the fiscal year 2026-27 was approved at a special cabinet meeting today with Prime Minister Tarique Rahman in the chair.
The meeting began at the cabinet room of the Jatiya Sangsad Secretariat at 10:00am, Prime Minister's Deputy Press Secretary Md Zahidul Islam confirmed.
12:30pm
Govt to unveil 3R strategy for economic recovery
The government is going to unveil a 3R strategy to revive the economy and achieve its goal of becoming a $1 trillion economy.
The 3R strategy comprises Recovery & Stabilisation, Restoration, and Reconstruction for Acceleration. The government aims to implement the plan in three stages.
12:15pm
What are the 10 broad priorities in the new budget?
Within the next couple of hours, Finance Minister Amir Khosru Mahmud Chowdhury is going to place his budget proposal before parliament.
It will be the first budget to be tabled by Chowdhury, a former commerce minister during the previous tenure of the BNP government.
12:00pm
Govt to propose zero VAT and tax on imported fertilisers, pesticides
Finance Minister Amir Khosru Mahmud Chowdhury will propose in the FY2026-27 budget a complete exemption of value-added tax (VAT) and advance tax at the import stage for all fertilisers and pesticides used in agriculture.
He will also propose fully exempting the 5 percent VAT applicable at the business stage on all fertilisers, and the 5 percent advance tax on all pesticides at the import stage.
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