Bangladesh is moving away from macro-centric economic strategies towards a micro-focused approach in its upcoming national budget, prioritising trade expansion, job creation, and equitable investment benefits.

Finance Adviser Dr Salehuddin Ahmed, who is steering the economy under the post-uprising interim government, outlined this shift during an interview with a leading business daily.

“Our goal is to improve the quality of people’s lives through practical and inclusive policies,” said Dr Ahmed, highlighting a break from “unrealistic promises” of past budgets. “This time, the emphasis is on realism, responsibility, and effectiveness.”

With limited resources and lingering effects from last year’s political unrest, the government is preparing a contractionary Tk 7.90-trillion budget for FY2025–26—smaller than the previous year’s Tk 7.97 trillion. Revenue targets have been set at Tk 5.18 trillion, and ADP spending at Tk 2.30 trillion.

The budget will downsize capital-heavy megaprojects in favour of labour-intensive local initiatives to spur employment. A dedicated fund will support startups and entrepreneurship to boost innovation.

On education and health, the focus will shift to skills development over infrastructure.

To bridge fiscal gaps, the government plans to lean on domestic borrowings and foreign budget support from the IMF, World Bank, and ADB. Import duties on 100 US products, including cotton, have been slashed to offset trade tensions with the US.

Dr Ahmed also signalled reform in tax exemptions, including a review of long-standing benefits for the RMG sector, and a push to reduce dependence on foreign aid by enhancing FDI, remittance, and exports.