Bangladesh unveils $77 billion budget, eyes 6.5% growth
- 'The government aims to reduce inflation to 7.5% and raise GDP growth to 6.5% in the upcoming fiscal year,' Chowdhury says
DHAKA: Bangladesh unveiled a 9.38 trillion taka ($77 billion) national budget on Thursday, targeting 6.5% economic growth and 7.5% inflation as the government seeks to revive an economy strained by high prices, weak investment and financial sector fragility.
The budget, for the fiscal year beginning in July, marks a political and economic turning point after the ouster of former prime minister Sheikh Hasina in 2024.
Prime Minister Tareque Rahman’s new administration is pushing reforms while seeking fresh loans from international lenders, including the International Monetary Fund.
It adopts a more expansionary stance than the previous interim government, with overall spending rising 19% and development expenditure jumping 47% to 3.16 trillion taka, alongside an ambitious revenue target of 6.95 trillion taka.
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Presenting the budget in parliament, Finance Minister Amir Khosru Mahmud Chowdhury said the government’s priorities were restoring macroeconomic stability, strengthening purchasing power and improving living standards.
“The government aims to reduce inflation to 7.5% and raise GDP growth to 6.5% in the upcoming fiscal year,” Chowdhury said. “These targets are designed to ensure stability, enhance purchasing power and improve living standards.”
The budget projects a fiscal deficit of 2.43 trillion taka, or about 3.6% of gross domestic product, with the government planning to finance the gap through a mix of domestic and foreign borrowing. Foreign loans are expected to play a larger role, reflecting efforts to ease pressure on the local banking system while sustaining development spending.
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Chowdhury said structural weaknesses, governance failures and external shocks had weakened the economy, with growth slowing from 5.78% in fiscal 2022–23 to 4.22% in 2023–24 and an estimated 3.49% in the outgoing fiscal year.
The budget was themed “Journey Towards a Democratic, Humane and Inclusive Economy.”
The finance minister said it was designed to address economic fragility and risks from global instability, with stability, investment, production, employment and fairness as its core priorities.
The government hopes reforms in taxation, banking and public finance, alongside stronger investment and exports, will help reverse the slowdown, with the garment sector — which accounts for more than four-fifths of export earnings — central to the strategy.
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