The size of the national budget for the 2025–26 fiscal year has been set at Tk 7.90 trillion, down by Tk 70 billion from the current fiscal’s budget.

Since independence, this is the first time any government is reducing the overall budget size.

Interim Finance Adviser Dr Salehuddin Ahmed will unveil the country`s 55th national budget today (Monday) at 3:00 pm on state-run Bangladesh Television.

According to Finance Ministry sources, the decision to reduce the budget size aims to keep the budget deficit at a manageable level, control inflation, and maintain macroeconomic stability.

Although the new budget is smaller overall, the government plans to increase the allocation for operating (non-development) expenses to Tk 5.5 trillion. In the current budget, this amount is Tk 5.06971 trillion.

However, the allocation for development spending will be reduced to Tk 2.4 trillion. In the current budget, it is Tk 2.81453 trillion.

For the Annual Development Programme (ADP), the spending plan for this year is Tk 2.65 trillion. In the upcoming budget, it may be lowered to Tk 2.3 trillion.

According to officials, the budget size has been reduced to match the ongoing contractionary monetary policy, cut public spending, and make the budget more realistic and achievable.

The proposed budget may include several tax and duty cuts on essential commodities, fuel, and medicines—likely bringing prices down.

Goods expected to see price drops include imported LNG, crude fuel oil, over 30 agriculture and daily essential items such as paddy, rice, wheat, potato, cattle, fish, meat, onion, garlic, lentils, ginger, turmeric, dry chillies, maize, and edible oil.

Duties on crude fuel oil may be cut from 5% to 1%, while other fuel imports may see duty lowered from 10% to 3%. The government is also considering VAT exemptions on LNG imports, which may reduce prices.

To support the leather industry ahead of Eid-ul-Azha, customs duties on key chemical ingredients may be slashed from 5% to 1%.

The advance tax at source on imported agricultural items is also likely to drop to 0.5% from the existing 1%, covering items such as wheat, pulses, seeds, salt, mustard, tea leaves, spices, and jute.

Registration fees for land may also be lowered to reduce costs for landowners.

Sugar imports are likely to get a duty cut as well, which could help ease prices.

To make treatment more affordable, the budget may offer duty exemptions on raw materials for medicines and medical equipment. In particular, 79 new items related to cancer, kidney, and vascular disease drugs may be made duty-free.

Raw materials for toys and cricket bats may also get duty cuts. The duty on imported finished toys may be set at USD 4 per kg, while the duty on willow wood used in cricket bats may drop from 37% to 26%.

To support local software development and boost exports, the government may reduce import duty on development tools, operating systems, databases, and security software from 10% to 5%.

Additionally, the supplementary duty on non-alcoholic juice imports may be reduced from 150% to 100%, making foreign juices more affordable.