Election pledges to be reflected in next budget, 8% tax-GDP target set: Finance minister
Among the BNP’s key economic promises were accelerating growth and investment, generating employment for youth, ensuring policy stability in trade and commerce, and reforming the revenue system
Newly appointed Finance Minister Amir Khosru Mahmud Chowdhury has instructed the authorities to ensure that the government's election pledges are reflected in the upcoming national budget, signalling the administration's intent to implement its commitments from the very first fiscal year.
He directed policymakers to move forward with budget preparations in a way that clearly demonstrates progress on campaign promises. The instructions were placed at a meeting held between the minister and officials from departments under the ministry at the Secretariat yesterday.
According to officials present at the meeting, Amir Khosru emphasised that the budget for FY2026-27, due to be unveiled in June, should visibly align with commitments made in the election manifesto of the BNP.
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A senior finance ministry official, speaking to The Business Standard on condition of anonymity, said, "The finance minister has asked us to proceed with budget formulation so that the government's election pledges are reflected in the imminent budget."
Among the BNP's key economic promises were accelerating growth and investment, generating employment for youth, ensuring policy stability in trade and commerce, and reforming the revenue system.
The party also pledged to increase spending on health and education to above 5% of GDP — a move that would require significant additional fiscal resources.
One of the most discussed commitments at yesterday's meeting was the introduction of a nationwide "Family Card" programme. Implementing the scheme could require additional annual government spending ranging between Tk12, 000 crore and Tk24, 000 crore, according to officials familiar with preliminary estimates.
The BNP has also promised to waive agricultural loans of up to Tk10, 000, a measure that would carry substantial fiscal implications. Other commitments included keeping commodity prices stable, expanding support programmes for low- and middle-income groups, and ensuring stability in fuel and food supply chains.
Tarique Rahman-led government is set to present its first budget in June, leaving roughly three to three-and-a-half months for preparation. Officials said that not all promises would be implemented within a single fiscal year.
However, the finance minister wants the budget to clearly signal the government's policy direction and commitment to delivery.
In addition to expenditure priorities, Amir Khosru has set an ambitious revenue target, instructing the National Board of Revenue to take effective measures to raise the tax-to-GDP ratio to 8% in the next FY.
Describing the target as highly ambitious, a senior NBR official from the tax policy wing said achieving the 8% ratio within a year would require revenue growth of nearly 50%, which he termed "unrealistic" under current economic conditions.
"There has not been such a surge in economic activity that revenue collection could increase at that pace," he said.
According to NBR data, the tax-to-GDP ratio fell to 6.7% in FY2024-25. Over the past two decades, revenue collection has grown by an average of around 15% annually. Despite that growth, the ratio has stagnated or declined, prompting calls from within the revenue authority for more accurate GDP estimation.
Meanwhile, Towfiqul Islam Khan, additional director (research) at the Centre for Policy Dialogue, told this newspaper that implementing the BNP's election pledges would require revenue to grow at a high rate.
"Such growth is not impossible," he said, "but it will require extensive reforms."
Although a recent event organised by the Citizen's Platform for SDGs, Bangladesh, recommended revising the current budget for the remainder of the fiscal year.
NBR Chairman Abdur Rahman Khan, however, said the issue was not discussed at yesterday's meeting.
