Bangladesh Annual Budget 2025-26
Bangladesh’s national budget for the fiscal year 2024-25, presented by Finance Minister Saleh uddin Ahmmed, amounts to BDT 7,97,000 crore.
- Macroeconomic Overview
1.1 GDP Growth Target
The government has set a GDP growth target of 6.8% for FY25. However, At this time Bangladesh’s present situation is good for this GDP or not nobody know about this. Government should take some step for this.
1.2 Inflation Control
Aiming to reduce inflation to 6.5%, the budget outlines measures to stabilize prices. Nonetheless, the effectiveness of these measures remains uncertain amid global economic fluctuations .
1.3 Financial Risk Statement
For the first time, the budget includes a financial risk statement, identifying risks related to macroeconomics, state-owned enterprises, and climate change. This initiative, developed with IMF assistance, aims to enhance fiscal transparency and management .
- Revenue Generation
2.1 Tax Revenue Targets
The National Board of Revenue (NBR) aims to collect BDT 4.30 trillion in taxes, marking a 16% increase from the previous year. Key sources include VAT, income tax, and import duties .
2.2 VAT and Duties
The budget proposes the elimination of VAT and advance tax on 13 oil and petroleum products to stabilize revenue streams, despite global price fluctuations .
- Expenditure Allocation
3.1 Social Welfare Programs
Allocations for social safety nets have increased slightly, from 17% to 17.1% of the total budget. However, the Open Market Sales (OMS) program, crucial for food security, has seen a significant reduction in funding .
3.2 Agriculture Sector
The agriculture sector’s budget has been reduced by 15.5%, raising concerns about the government’s commitment to rural development and food security .
3.3 Infrastructure Development
Significant investments are planned for major infrastructure projects, including the Padma Bridge and Metro Rail, to enhance connectivity and stimulate economic activity .
4.1 Education and Health
The budget emphasizes the development of education and health sectors, aiming to improve human capital. However, critics argue that the allocation may be insufficient to meet the growing demands of these sectors .
4.2 Digital Bangladesh Initiative
Continued investment in ICT infrastructure is planned to advance the “Smart Bangladesh” vision, promoting digital governance and economic modernization .
- Economic Challenges and Criticisms
5.1 Unrealistic Targets
Economists have criticized the budget’s targets for GDP growth and inflation control as unrealistic, given the current economic environment .
5.2 Institutional Corruption
Concerns have been raised about institutionalized corruption, particularly regarding lenient measures for whitening black money, which may undermine efforts to enhance tax compliance.
- Conclusion
The Bangladesh Budget 2024-25 presents a comprehensive plan to address the nation’s economic challenges and promote development. While it outlines ambitious targets and initiatives, the feasibility of these plans depends on effective implementation and alignment with realistic economic conditions. Ongoing scrutiny and adjustments will be essential to ensure the budget’s success in achieving its objectives.
This analysis provides a detailed overview of the Bangladesh Annual Budget 2024-25, highlighting key aspects and considerations. For further information and updates, you should check all kind of government website or government site where publish all kind of updet about present budget.
Published By Shimul