Finance minister proposes Tk9 lakh crore budget, deficit of Tk2.5 lakh crore

Finance Minister Amir Khosru Mahmud Chowdhury has proposed a total budget of Tk9.38 lakh crore for the upcoming 2026-27 fiscal year. 

This budget is Tk1.48 lakh  crore more than the last fiscal year. The deficit in the proposed budget will stand at Tk2.43 lakh crore. The finance minister has proposed to meet a large part of this deficit from domestic sources.

In which sector will this much expenditure be spent

Regarding the expenditure in the budget, the finance minister's proposal is that the total development expenditure of Tk3.16 lakh crore will be allocated for the annual development programme.

A plan has been taken to gradually increase the share of development expenditure in the budget. To that end, it has been proposed to increase the total development expenditure from 27.27 percent of the current fiscal year's allocation (revised) to 33.70 percent and reduce the operating expenditure from 72.73 percent of the current fiscal year to 66.30 percent in the next fiscal year.

In the annual development programme, priority has been given to the education, health, science, research and technology sectors, which are essential for human resource development and building a knowledge-based society, and the economic empowerment of the grassroots people. 

In addition, special importance has been attached to the development of physical infrastructure necessary for investment and sustainable development.

In the proposed budget, a total of Tk 2,79,010 crore has been proposed for the social infrastructure sector, which is 29.74 percent of the total allocation. Tk 1,74,988 crore has been allocated for the physical infrastructure sector, which is 18.66 percent of the total allocation.

Tk 2,45,117 crore has been proposed for the general services sector. This is 26.13 percent of the total allocation. 

The finance minister said that this increased and maximum expenditure proposal for the social sector is a reflection of the government's election promise to prioritise education, health and social security programmes.

How will the deficit be met?

In the proposed budget, the finance minister said that out of the total deficit, Tk 1.27 trillion will be met from domestic sources and Tk 1.16 trillion from foreign sources.

Out of the domestic sources, Tk 1.12 trillion will be met from the banking system. In the current fiscal year 2025-26, it was Tk1.18 trillion.