Finance Minister Amir Khusru Mahmud Chowdhury has said the budget deficit for the proposed 2026–27 fiscal year is projected at Tk 2,43,000 crore, equivalent to 3.6 percent of GDP.
He made the announcement during his budget speech in Parliament on Wednesday afternoon.
He said that of the total deficit, Tk 1,27,000 crore will be financed from domestic sources, while Tk 1,16,000 crore will come from external borrowing. Of the domestic financing, Tk 1,12, 000 crore is expected to be raised from the banking sector.
The finance minister noted that bank borrowing in the current 2025–26 fiscal year stood at Tk 1,18,000 crore, adding that the proposed budget envisages a reduction of Tk 60 billion in bank borrowing for the next fiscal year.
Amir Khusru Mahmud Chowdhury said excessive borrowing during the previous “fascist government” had significantly increased debt servicing and interest payment obligations, thereby widening the budget deficit. He said the deficit stood at 2.9 percent of GDP in the 2005–06 fiscal year, rising to 4.05 percent in 2023–24.
He further said the government is working on reforms in debt management, prioritising high-return public investment, and modernising project implementation frameworks. These measures, he said, will improve the quality of investment, enhance money flow, and stimulate economic activity through stronger multiplier effects.
Finance Minister Amir Khasru Mahmud Chowdhury unveiled the proposed national budget for the 2026–27 fiscal year in parliament on Thursday.
The proposed budget, the first under the current government, has an outlay of Tk938,000 crore.
