BSS
  02 Jun 2025, 21:06

FICCI acknowledges positive steps in Finance Ordinance 2025

DHAKA, June 2, 2025 (BSS) - The Foreign Investors Chamber of Commerce and Industry (FICCI) today acknowledged the positive steps of the proposed national budget for the fiscal year 2025-26 (FY26), saying such steps would easy burden on specific sectors and promote a more predictable tax system. 

“We have thoroughly reviewed the Finance Ordinance 2025. We acknowledge certain positive aspects,” said FICCI at its initial budget reaction.

He said Taka 100 crore fund for the youth entrepreneurs is a good move.

On the positive side, the Ordinance demonstrates a commitment to easing the burden on specific sectors and promoting a more predictable tax system. 

The reduction of the source tax for construction companies and essential goods is a pragmatic move that will offer good relief to these vital industries.

Extending the rebate and refund period from four to six months will also benefit businesses navigating working capital constraints. 

The proposed budget for the 2025-26 fiscal year amounts to a total expenditure of Taka 7.9 lakh crore, which is 12.7% of GDP. This includes a proposed allocation of 5.6 lakh crore Taka for operating and other sectors, and Taka 2.3 lakh crore for development programmes. 

The revenue target is set at Taka 5.64 lakh crore, accounting for 9% of GDP. The budget deficit of Taka 2.26 lakh crore (3.6% of GDP) is planned to be financed through domestic and foreign sources. 

Significant allocations have been made for education, health, agriculture, and social programmes, including Taka 35,403 crore for primary and mass education, Taka 47,563 crore for secondary and higher education,Taka  41,908 crore for health, and Taka 39,620 crore for the agriculture sector.

 Additionally, a proposed allocation of Taka 5,040 crore has been made for the Public-Private Partnership fund in the 2025-26 fiscal year to encourage investment projects through government-private partnerships, which we believe will play a supportive role in increasing foreign investment.