Bangladesh’s Interim Government Unveils First National Budget

(MENAFN) Bangladesh’s provisional administration, headed by renowned economist Muhammad Yunus, has sanctioned its inaugural national financial plan amounting to 7.9 trillion taka (USD64.96 billion) for the 2025–26 fiscal year.

This budget comes during a period marked by dwindling foreign capital inflows and persistent inflationary pressure.

The budget received formal approval from the temporary advisory council and will come into force starting July 1 through a presidential ordinance.

This procedural move underscores the transitional government’s effort to maintain governance amid political and economic instability.

Salehuddin Ahmed, serving as the financial adviser to the caretaker government, delivered the proposed budget through a pre-recorded message that was aired on local broadcast outlets. This approach highlighted both the logistical constraints and the strategic communication adopted by the interim leadership.

This transitional administration took shape in August of the previous year following a student-driven movement that led to the ousting of former Premier Sheikh Hasina. Hasina left the country and sought refuge in India shortly afterward.

Describing the budget for the 2025–26 fiscal period as both “timely and realistic,” the finance adviser stated confidently that it "is implementable."

Despite being slightly smaller than the preceding year’s allocation of 7.97 trillion taka (USD68 billion), the budget reflects an attempt to stabilize the country’s financial path.

Official figures from the Finance Ministry reveal that net foreign aid entering Bangladesh amounted to just over USD1.6 billion during the first 10 months since July 2024—representing a significant 52.45 percent decrease from the same period the previous year. This stark drop highlights the declining confidence of international investors.

Meanwhile, inflation has hovered around 10 percent in recent months, heavily impacting lower-income communities and intensifying economic strain across the country.

The interim administration claims it took over a weakened financial system from the previous Sheikh Hasina-led government.

Central bank chief Ahsan H. Mansur has accused Hasina’s regime of illicitly transferring approximately USD20 billion out of the country over the past 15 years, further complicating efforts to restore fiscal stability.

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