BSS
  24 Dec 2025, 19:15

Revised budget sets inflation target at 7pc, GDP growth at 5pc

Chief Adviser Professor Muhammad Yunus today chaired the weekly meeting of the Council of Advisers at his office in Dhaka. Photo: PID

DHAKA, Dec 24, 2025 (BSS) – The revised budget for the current fiscal year 2025–26 has set the inflation target at 7 percent and the GDP growth rate at 5 percent. 

The government is hopeful that the targeted inflation rate would be achievable by the end of the fiscal year as food inflation continues to decline.

The revised budget was approved by the Council of Advisers today at its weekly meeting at the Chief Adviser’s Office (CAO) here with Chief Adviser Professor Muhammad Yunus in the chair. The revised budget for the ongoing fiscal year 2025–26 will come into effect from February 1.

Later, Chief Adviser’s Press Secretary Shafiqul Alam briefed the media about the meeting at the Foreign Service Academy here this afternoon.

“Food inflation had reached nearly 14 percent in the end of the last year. But it has now come down to around 7 percent. With increased vegetable production and supply during the winter season, we hope the inflation will decline further,” he said. 

By the end of the current fiscal year, overall inflation is expected to fall to 7 percent and GDP growth to stand at 5 percent, the press secretary added.

Highlighting the revenue situation, Shafiqul Alam said the pace of revenue collection has increased in the current fiscal year. 

During July–October of FY 2024–25, revenue growth was 24.1 percent, which rose to 26.4 percent in the same period of the current fiscal year, he said, adding, in this context, the total revenue target for the current fiscal year has been revised upward by Taka 24,000 crore from Taka 564,000 crore to Taka 588,000 crore. 

Of the amount, Taka 503,000 crore will be collected from the National Board of Revenue (NBR), Taka 65,000 crore from non-tax revenue, and Taka 20,000 crore from non-NBR sources, the press secretary said.

Total government expenditure in the revised budget has been set at Taka 788,000 crore, he said, adding that in the original budget, the expenditure target was Taka 790,000 crore, which has been reduced by Taka 2,000 crore in the revised budget.

The size of the Annual Development Programme (ADP) in the revised budget has been fixed at Taka 200,000 crore, equivalent to 3.3 percent of GDP, Shafiqul Alam said, adding, in the original budget, the ADP size was Taka 230,000 crore, or 3.7 percent of GDP, meaning development expenditure has been reduced by Taka 30,000 crore.

In the revised ADP, foreign financing has been set at Taka 72,000 crore and domestic financing at Taka 128,000 crore, he said, adding that other budgetary expenditures, including operating costs, amount to Taka 588,000 crore.

The total budget deficit in the revised budget has been fixed at Taka 200,000 crore, which is 3.3 percent of GDP, Shafiqul Alam said. 

Of this deficit, Taka 63,000 crore will be collected from foreign sources while Taka 137,000 crore will be financed from domestic sources, he added.