Low-income citizens across Bangladesh are placing high expectations on Finance Minister Amir Khasru Mahmud Chowdhury as he prepares to unveil the national budget for FY2026-27 on Thursday-a fiscal statement widely anticipated as a test of whether the government can deliver a genuinely people-centred economic shift.
The budget is expected to confront widening inequality through higher taxation on the wealthy, targeted relief for middle-income groups, and a broader, fairer expansion of the national tax base.
For many citizens struggling with rising living costs, the central expectation is a visible rebalancing of fiscal priorities in favour of inclusive growth-ensuring that those who have accumulated substantial wealth contribute more meaningfully to national development, while ordinary households receive tangible economic relief.
“This will be the first full budget of the BNP-led government, elected with a massive mandate from ordinary people in February. It carries a responsibility to restore hope, dignity and improved living standards for the common people,” said Shahjahan, a street vendor in Motijheel, Dhaka. Echoing this sentiment, a schoolteacher in Chandpur said economic fairness must now take centre stage. “Continuing to favour those who are already privileged serves neither justice nor sustainable growth. The focus must be on uplifting those at the bottom of the economic ladder, not further enriching those at the top. We hope fiscal policy will finally narrow inequality and expand opportunity for all,” he said.
An economist told The Daily Observer that the real measure of the budget would lie in whether it creates credible pathways for upward mobility rather than reinforcing entrenched wealth concentration. “The true test will be whether those left behind are brought into the mainstream of national progress,” he observed.
Finance Ministry sources indicated that the upcoming budget blends tax and duty rationalisation measures aimed at supporting domestic industry and investment with a stronger drive to expand the tax net and improve revenue mobilisation. While sections of the business community have welcomed the reform direction, concerns persist among parts of the middle class over potential new tax pressures and tighter compliance requirements. Officials said a series of broad-based revenue reforms are being finalised to build a fair, predictable and technology-driven tax system, with priority sectors including agriculture, ICT, healthcare and renewable energy.
The National Board of Revenue (NBR) is targeting a tax-to-GDP ratio of 15 per cent by 2035, as Bangladesh continues to grapple with a narrow tax base, extensive exemptions and low compliance levels. Among key proposals under consideration is a revision of advance tax on commercially operated motor vehicles, alongside an expanded classification system and stricter compliance linked to registration and fitness renewals. A major structural reform may come in the form of a proposed Wealth Tax Act, 2026, designed to replace the existing surcharge regime with a dedicated progressive wealth taxation framework aimed at strengthening fiscal equity.
To ease pressure on taxpayers, the budget is also expected to introduce longer-term certainty in income tax slabs and exemption thresholds, alongside targeted protections for low-income earners, women, senior citizens and other vulnerable groups.
In parallel, significant tax relief measures are likely for agriculture and essential commodities, while startups and freelancers are expected to benefit from continued incentives to strengthen Bangladesh’s digital economy and expand foreign currency inflows. Healthcare costs may also be eased through VAT exemptions on critical medical inputs, while renewable energy and electric mobility sectors are expected to receive further fiscal incentives as part of a broader green transition strategy.
Administrative reforms aimed at tightening tax compliance-including mandatory taxpayer identification for banking and business transactions-are also under consideration, alongside measures to curb evasion and broaden the formal economy. As anticipation builds, the upcoming budget is being closely watched as a defining moment for fiscal policy direction-balancing growth, equity and stability in a politically charged economic landscape.
