The proposed national budget for the 2026–27 fiscal year includes a series of measures aimed at easing the financial burden on citizens amid persistent inflation and rising living costs.
Finance Minister Amir Khasru Mahmud Chowdhury presented the Tk 9.38 trillion budget in parliament on Thursday, outlining tax relief, social protection programs, healthcare support and salary reforms designed to improve the living standards of various segments of society.
One of the key proposals is an increase in the tax-free income threshold for individual taxpayers. The tax-exempt income limit is set to rise from Tk 350,000 to Tk 375,000 annually. For women and senior citizens aged over 65, the threshold has been proposed at Tk 425,000, while third-gender individuals and persons with disabilities will enjoy tax-free income up to Tk 500,000. Special tax benefits have also been proposed for those injured during the July Uprising.
To help reduce the cost of essential commodities, the government has proposed cutting source tax on around 60 daily necessities, including rice, lentils, wheat, potatoes, onions, garlic, ginger, edible oil, sugar and salt. The source tax on these products would be reduced to 0.5 percent from the existing 2–5 percent, a move expected to lower market prices.
The budget also includes several healthcare-related tax exemptions. Taxes and VAT on dialysis filters have been withdrawn, which is expected to reduce dialysis costs for kidney patients. Additional tax concessions have been proposed to lower the prices of cardiac stents and intraocular lenses used in eye surgeries.
In the telecommunications sector, the government has proposed abolishing the Tk 300 tax on new SIM cards. The source tax on mobile network services is also set to be reduced from 12 percent to 10 percent, potentially lowering communication and internet costs for consumers.
Senior citizens are set to benefit from a new travel initiative under which individuals aged 65 and above will be allowed to travel free of charge on Bangladesh Railway services. They will also receive a 25 percent fare discount on metro rail services.
To strengthen social protection, the government plans to distribute Family Cards to 4.1 million women. Under the program, beneficiaries will receive a monthly cash allowance of Tk 2,500. The monthly disability allowance is also proposed to increase to Tk 1,000, benefiting approximately 3.8 million recipients.
The Finance Minister further announced that a new pay scale for government employees will be introduced from July 1, 2026, with the aim of improving living standards in line with inflationary pressures.
“Our primary objective is to restore stability in the market and bring relief to ordinary people. We want to build a democratic, humane and inclusive economy,” the Finance Minister said during his budget speech.
The proposed budget sets a revenue collection target of Tk 6.95 trillion, leaving a deficit of Tk 2.43 trillion. To finance the gap, the government plans to mobilize funds from both domestic and foreign sources, including Tk 1.16 trillion from foreign loans and grants and Tk 1.27 trillion from domestic borrowing.
The new fiscal year is scheduled to begin on July 1, subject to parliamentary approval of the budget
