The FY2024-25 budget for Bangladesh proposes a total expenditure of Tk 797,000 crore against a tax revenue of Tk 541,000 crore, resulting in a deficit of Tk 256,000 crore. Despite being a lower percentage of GDP (4.6%) compared to the previous fiscal year, this significant deficit could stoke inflation. Financing the Tk 137,500 crore deficit through fragile banking sources may increase borrowing costs for businesses, leading to cost-push inflation. A more prudent approach would involve securing external financing with lower costs and longer repayment terms. On a positive note, the budget includes increased allocations for social protection programs, supporting vulnerable groups amid high inflation. However, it lacks sufficient investment in technical education and research, essential for technological and human resource development. While the budget is realistic, addressing these gaps could better align it with the country’s strategic priorities.
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