The American Chamber of Commerce in Bangladesh (AmCham) has welcomed the government's proposed national budget for FY2026-27 in Bangladesh, saying it gives balanced attention to macroeconomic stabilization, social protection and long-term growth.
With a total outlay of Tk938,000 crore, the budget targets 7.5% inflation and 6.5% Gross Domestic Product (GDP) growth. AmCham said the proposal reflects a pragmatic approach amid global and domestic economic challenges.
The chamber said the proposed fiscal deficit of 3.55% of GDP is broadly prudent. It cautioned, however, that reliance on domestic borrowing could constrain private sector credit and raise borrowing costs.
AmCham said continued coordination between fiscal and monetary policy will be essential to sustain macroeconomic stability and support private sector-led growth. It also noted the revenue target of Tk695,000 crore and called for comprehensive tax administration reform.
The chamber welcomed ongoing efforts to enhance digitalization, strengthen compliance and improve transparency. It said these steps are critical to broadening the tax base and reducing reliance on borrowing.
AmCham also commended increased allocations for education, healthcare and social safety net programs, including Tk145,000 crore for social protection. It said the spending should be matched by better quality, governance and service delivery.
The expansion of the Annual Development Program to Tk300,000 crore was described as a positive step toward stronger infrastructure and connectivity. AmCham also said project delays and cost overruns should be addressed through better readiness, evaluation and performance-based monitoring.
The chamber welcomed measures to support export competitiveness and trade facilitation, including reductions in certain import- and export-related taxes. As Bangladesh prepares for Least Developed Country (LDC) graduation, it said structural reforms, policy predictability and alignment with post-LDC obligations will be essential.
On energy, AmCham welcomed the government's focus on renewable energy and sustainable growth, including incentives for solar power and electric vehicles. It also stressed the need for reliable and affordable energy supply through continued investment in domestic resource development and infrastructure efficiency.
AmCham said the FY2026-27 budget provides a strong foundation for economic resilience and growth, but its success will depend on effective implementation, policy consistency and stronger public-private collaboration.
