10
The national parliament has passed the BDT 9.38 trillion budget for the fiscal year 2026-27. The new budget will come into effect from tomorrow, Wednesday (July 1). Several significant changes have been introduced in the new budget across various sectors, including taxation, VAT, and investment.
On Tuesday (June 30), the budget for the new fiscal year was passed by a voice vote in a session presided over by Speaker Major (retd.) Hafiz Uddin Ahmad Bir Bikrom at the National Parliament.
Previously, on Monday (June 29), the National Parliament passed the Finance Bill with several amendments. The amended Finance Bill increased the tax-free income limit to BDT 4 lakh. Concurrently, the provision allowing investment of undisclosed income (black money) in the housing sector without scrutiny has been revoked.
Moreover, the corporate tax for private universities and medical colleges has been set at 5 percent, down from 10 percent. The proposal to impose VAT on retail businesses has also been dropped. With the passage of the Finance Bill, all tax and duty-related proposals have been finalized.
Finance Minister Amir Khosru Mahmud Chowdhury presented the budget proposal for the upcoming fiscal year in the National Parliament on June 11. The budget was titled ‘Journey Towards a Democratic, Humane, and Inclusive Economy’.
The new budget allocates BDT 3.16 trillion for development expenditure, marking a 47 percent increase compared to the revised budget of the outgoing fiscal year.
Excluding food accounts, loans and advances, domestic and foreign debt repayment, and structural adjustments, the operating expenditure has been estimated at BDT 6.057 trillion, which is 6.7 percent higher than the revised non-development budget of the outgoing fiscal year.
Out of this, BDT 1.27 trillion will be allocated for servicing interest on the government’s domestic and foreign loans. Furthermore, at least BDT 893.8 billion has been earmarked for paying salaries and allowances to government employees.
The revenue target for the new fiscal year has been set at BDT 6.95 trillion, an 18 percent increase compared to the revised revenue of the outgoing fiscal year. Additionally, the government anticipates receiving BDT 61.5 billion from foreign grants.
The new budget projects an overall deficit of BDT 2.43 trillion between income and expenditure. To finance this deficit, the government aims to borrow BDT 1.27 trillion from domestic sources. The budget proposal also includes a target to borrow BDT 1.5585 trillion from foreign sources.