Finance Minister Abul Hassan Mahmood Ali is set to unveil a substantial Tk7,97,000 crore national budget for the upcoming fiscal year (FY25) at the National Parliament on Thursday.
The budget announcement comes amid significant challenges such as controlling inflation, maintaining a stable foreign currency reserve and exchange rate, and increasing revenue generation.
This will be the 53rd national budget for Bangladesh and the 25th under the Awami League government. It will also be the 21st budget presented under Prime Minister Sheikh Hasina’s leadership and the first by Finance Minister Mahmood Ali.
The inaugural budget was presented by Tajuddin Ahmad in 1972 as the finance minister of the post-independence Bangabandhu government. Mahmood Ali, who has previously served as the Minister for Disaster Management and Relief and the Minister for Foreign Affairs, aims to build a “Smart Bangladesh” despite various obstacles.
The theme for FY25’s budget is “Pledge towards building a happy, prosperous, developed and smart Bangladesh,” focusing on reviving the economy. The finance minister targets a 6.75% GDP growth while containing inflation at 6.50%, despite current inflation hovering just below double digits.
Finance ministry officials indicated that the proposed budget size of Tk7,97,000 crore is 4.60% higher than the previous year’s budget, with the GDP estimated at Tk55,97,414 crore. The budget will feature an estimated deficit of Tk2,56,000 crore excluding grants, or Tk2,51,600 crore including grants, aiming to keep the budget deficit at 4.6% of GDP.
This year’s budget includes an Annual Development Program (ADP) outlay of Tk2,65,000 crore, with additional allocations for specific schemes, special projects, and the food for work program. The government will focus on revenue generation, targeting Tk5,41,000 crore, with the National Board of Revenue (NBR) expected to collect Tk4,80,000 crore.
To manage expenditure, the government plans to borrow around Tk1,27,200 crore from foreign sources and Tk1,60,900 crore from domestic sources, including Tk1,37,500 crore from the banking system. The budget also allocates around Tk5,06,971 crore for operating costs, including interest payments and capital expenditures.
Key priorities for the budget include controlling inflation, stabilizing the economy, maintaining commodity prices, and ensuring decent living standards. Various austerity measures, boosting agricultural productivity, and ensuring market stability are part of the strategy to mitigate inflation impacts.
The budget will support initiatives such as food security, modernizing villages, digital health and education systems, fast-tracking infrastructure projects, and addressing climate change impacts. To expand the VAT net, the NBR plans to enhance operations in Dhaka and Chittagong and implement stricter VAT payment requirements.
Budget documents will be available on the Finance Division (www.mof.gov.bd) and NBR (www.nbr.gov.bd) websites, with provisions for public feedback via email. The finance minister will hold a post-budget press conference on Friday at 3 PM at the Osmani Memorial Auditorium in Dhaka.
