Dhaka, June 22 (V7N)— Bangladesh’s interim government has approved a $71 billion national budget for the fiscal year 2025–26, aiming to boost economic equity and public trust while maintaining fiscal discipline. The budget, finalized Saturday, marks the first under the caretaker administration led by Nobel laureate Professor Muhammad Yunus.

The approved budget maintains the proposed overall size of 7.9 trillion taka but introduces key adjustments—most notably, a 10,000 crore taka (nearly $900 million) increase in social safety net spending, bringing the total allocation to over 912 billion taka. The controversial provision allowing black money to be legalized through real estate investment has been scrapped.

Finance Adviser Dr. Salehuddin Ahmed said the government targets 5.5% GDP growth and aims to keep inflation at 6.5%. The Annual Development Programme (ADP) has been set at 2.3 trillion taka, with a budget deficit trimmed to 3.62% of GDP—down from the current year’s 4.6%.

Tax reforms are a major feature of the new budget. Publicly traded companies face a new tiered structure based on how their income is reported, while private educational institutions—including medical and engineering colleges—will benefit from a reduced 10% tax rate. Property transfer taxes and advance tax on petroleum imports were also significantly lowered.

The government has introduced a number of VAT and import duty exemptions to promote green energy and healthcare access. These include reduced duties on solar inverters, recycled cotton, medical equipment, and even beauty parlors run by women entrepreneurs. The government also removed the previous 7.5% advance tax on refined fuel imports, cutting it down to just 2%.

Officials say the reforms are aimed at creating a more inclusive economy, improving transparency, and responding to citizens’ demands. “This budget lays the foundation for a more accountable, resilient state,” said Dr. Dhruv Sharma, World Bank Senior Economist, referring to the broader governance reforms supported by international partners.

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