What Is 2025-26 National budget of Bangladesh

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Last updated: April 15, 2026

Quick Answer: The 2025-26 National Budget of Bangladesh is projected to be approximately ৳8.2 trillion (about $94 billion USD), with a focus on economic recovery, infrastructure development, and social safety nets following post-pandemic challenges and global inflation pressures.

Key Facts

Total budget allocation for FY 2025-26 is set at ৳8.2 trillion (approx. $94 billion USD).
Revenue target is ৳5.4 trillion, aiming for a 12% increase over 2024-25.
Development budget constitutes ৳2.5 trillion, or 30.5% of total spending.
Deficit is projected at ৳2.8 trillion, equivalent to 4.9% of GDP.
Budget prioritizes infrastructure, healthcare, education, and digital transformation.

Overview

Bangladesh is preparing to unveil its national budget for the fiscal year 2025-26, which runs from July 1, 2025, to June 30, 2026. This budget is critical for sustaining economic momentum amid global uncertainty, inflationary pressures, and post-pandemic recovery efforts. It reflects the government's strategic priorities in infrastructure, human capital development, and fiscal sustainability.

The budget aims to balance growth stimulation with fiscal discipline, targeting a GDP growth rate of 6.2% for the year. It emphasizes domestic resource mobilization, tax reforms, and public-private partnerships to reduce dependency on foreign borrowing. Key sectors such as energy, transport, and digital services are expected to receive substantial allocations.

Revenue collection target is set at ৳5.4 trillion, a 12% increase from 2024-25, aiming to improve tax compliance and broaden the base.
Expenditure ceiling is fixed at ৳8.2 trillion, reflecting a 9.5% rise from the previous year’s revised estimate.
Development spending accounts for ৳2.5 trillion, focusing on roads, power, and climate-resilient agriculture projects.
Defense allocation remains stable at ৳62,000 crore, representing about 7.6% of total spending.
Social safety nets will receive ৳1.3 trillion, supporting vulnerable populations through cash transfers and food programs.

How It Works

The budget formulation process in Bangladesh involves multiple ministries, the Ministry of Finance, and the Planning Commission, culminating in a parliamentary presentation around early June each year.

Term: The fiscal year 2025-26 runs from July 1, 2025, to June 30, 2026. This 12-month cycle aligns with Bangladesh’s administrative calendar and determines all government financial activities.
Budget preparation begins in January with ministry-level proposals, followed by coordination with the Finance Division and final approval by the Cabinet.
Revenue forecasting relies on historical data, economic growth projections, and tax policy changes to estimate income from VAT, customs, and income taxes.
Expenditure classification divides funds into recurrent (salaries, pensions) and development (projects, grants), ensuring transparency in spending priorities.
Parliamentary approval is required before implementation, typically granted within two weeks of the budget speech in early June 2025.
Implementation monitoring is conducted quarterly by the Ministry of Finance to track disbursement and adjust allocations as needed.
Audit and accountability are ensured through the Comptroller and Auditor General (CAG), which reviews spending compliance annually.

Comparison at a Glance

Budget allocations over the past five years show a consistent upward trend in spending, with increasing emphasis on development and social sectors.

FY	Total Budget (৳ crore)	Revenue Target (৳ crore)	Development Budget (৳ crore)	Deficit (% of GDP)
2021-22	603,664	400,000	180,000	5.2%
2022-23	684,265	436,000	210,000	5.1%
2023-24	752,944	480,000	230,000	5.0%
2024-25 (Revised)	7,700,000	5,000,000	2,400,000	4.8%
2025-26 (Proposed)	8,200,000	5,400,000	2,500,000	4.9%

The table illustrates a steady rise in total outlay, with development spending growing at an average of 8% annually. While revenue collection efforts are improving, the deficit remains within IMF-recommended thresholds, supporting macroeconomic stability. The 2025-26 budget continues this trajectory, balancing growth and fiscal prudence.

Why It Matters

The 2025-26 budget is a blueprint for Bangladesh’s transition toward upper-middle-income status by 2031, shaping economic policy and public service delivery for millions.

Infrastructure investment in highways, railways, and energy will enhance connectivity and reduce logistics costs for businesses.
Education funding includes ৳130,000 crore to improve primary enrollment and vocational training access.
Healthcare expansion allocates ৳95,000 crore for hospital upgrades and rural health clinics.
Climate resilience receives ৳80,000 crore for flood control, coastal embankments, and early warning systems.
Digital Bangladesh initiatives are boosted with ৳45,000 crore for broadband expansion and e-governance.
Private sector incentives include tax breaks for startups and green energy projects to stimulate innovation.

This budget sets the foundation for inclusive growth, job creation, and sustainable development, reinforcing Bangladesh’s position as one of South Asia’s fastest-growing economies.