Tk 9.38 lakh crore national budget to be unveiled Thursday

Budget briefcase

Dhaka, June 10 - The new government is all set to place its first national budget with a financial outlay of Tk 9.38 lakh crore for the fiscal year 2026-27 in Parliament on Thursday, mapping out a strategy targeted at stabilisation and fiscal reform.

Finance Minister Amir Khosru Mahmud Chowdhury will present the proposed budget in the House at 3:00pm.

According to high-level treasury sources, the government has set an ambitious overall revenue mobilisation target of Tk 6.95 lakh crore to fund the massive public expenditure.

Out of the total revenue target, the National Board of Revenue (NBR) has been given the task of collecting Tk 6.04 lakh crore. Additionally, Tk 25,000 crore is expected to come from non-NBR tax sectors, while non-tax revenue (NTR) sources are projected to yield Tk 66,000 crore.

A major portion of the resource allocation will be consumed by debt servicing obligations.

The government has earmarked Tk 1.27 lakh crore solely for interest payments on loans. Of the amount, Tk 1.05 lakh crore will go towards servicing domestic debt, while foreign loan interest payments will require Tk 22,500 crore.

The draft proposal estimates the overall budget deficit at Tk 2.43 lakh crore. To bridge this significant fiscal deficit, the government plans to borrow Tk 1.09 lakh crore from foreign funding sources.

For domestic deficit financing, the administration will heavily rely on the country’s banking system, planning to borrow Tk 1.12 lakh crore from commercial banks.

The remaining gap of Tk 15,000 crore is projected to be met through the sales of national savings certificates.

Macroeconomic analysts indicate that the primary challenge for the new government will be controlling inflationary pressures and ensuring efficient revenue collection without disrupting industrial growth, as the country navigates a complex economic transition. - UNB