Rejaul Karim Byron

The BNP-led government, which swept into power with a two-thirds majority in February, is set to unveil the country’s largest budget yet, hinging on an ambitious revenue target and a bold plan to draw on foreign assistance.

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About one-fourth of the upcoming fiscal year’s budget will go towards five ministries and divisions including health, education and defence, with a significant portion kept as block allocations to undertake projects in line with the BNP’s electoral pledges.

The government is setting aside Tk 1,45,000 crore in the next fiscal year’s programme for social safety net schemes, up 14.4 percent year-on-year, with about 9.7 percent of the sum going towards the BNP’s flagship Family Card programme.

The government will allocate Tk 1,26,125 crore for subsidies and incentives in the upcoming fiscal year’s budget, with 55 percent going towards electricity and fertiliser.

The government is planning to form a high-level committee to implement and monitor the action plans it has committed to the United Nations Committee for Development Policy (UN CDP), as part of efforts to ensure a smooth graduation from the least developed country (LDC) group.

The government expects the country’s gross foreign currency reserves to hit a record $51.4 billion by the end of next fiscal year, provided that remittance inflow is strong and interest rates high.

The government is setting a high growth target for the next fiscal year, banking on the possibility of stability returning to the Middle East by June next year and the expansionary fiscal and monetary policies being pursued.