The Finance Bill 2026 has been passed in the National Parliament with several significant amendments, including the cancellation of the opportunity to legalize undisclosed money. On Monday (June 29) afternoon, Finance Minister Amir Khosru Mahmud Chowdhury presented the bill for final approval under the Speaker’s chairmanship, and it was approved by voice vote.
In the passed Finance Bill, in addition to abolishing the provision for legalizing undisclosed money, the tax-free income limit for individuals has been set at BDT 4 lakh. Furthermore, the TIN number is no longer mandatory for opening bank accounts.
Earlier, there was extensive discussion on the general principles of the bill. Members of Parliament called for further scrutiny of the bill, highlighting various issues including the huge budget deficit, the burden of taxes and VAT, corruption in the banking sector, crises in the health and education sectors, and foreign debt. Following the discussion, the bill was finally passed with the inclusion of several amendments.
In his concluding remarks on the budget, the Finance Minister stated that although the current government inherited a weak economy and a fragile institutional framework, it remains hopeful of achieving sustainable growth. He expressed optimism that economic challenges could be overcome through effective leadership, strong institutions, efficient administration, and public participation.
He further added that the government is gradually moving from a debt-dependent economy towards an investment-driven one. Private investment, innovation, and employment will be the primary drivers of future growth.
The Finance Minister thanked Members of Parliament, economists, businesspeople, and the media for their constructive feedback and criticism, stating that this budget is not merely an account of income and expenditure but a realistic blueprint for restoring economic stability, increasing investment, and establishing social justice.
Highlighting the rationale behind setting inflation at 7.5 percent and GDP growth target at 6.5 percent, he explained that the economy is under pressure due to long-standing policy weaknesses, corruption, money laundering, exchange rate manipulation, and global geopolitical instability. However, he expressed hope that positive trends in agriculture, industry, service sectors, and expatriate remittances, supported by government policy measures, would help overcome the situation.
In response to criticism regarding high revenue targets, the Finance Minister assured that the government would not increase tax rates but would expand the tax base. To enhance transparency, tax policy and tax administration are being completely separated. Alongside stringent measures to prevent tax evasion, traditional markets and small grocery stores will be completely exempt from the proposed single-rate VAT system for small businesses.
He informed that due to various timely initiatives of the current government, the National Board of Revenue (NBR) collected over BDT 4 lakh crore in taxes for the first time in the current fiscal year. He added that in the upcoming fiscal year, operating expenses would be reduced, and development expenditure would be increased, stating that 33.7 percent of the total budget would be allocated to the development sector in the 2026-27 fiscal year, compared to just 27.27 percent in the current fiscal year. Conversely, operating expenses would be reduced from the current 72.73 percent to 66.3 percent.
Criticizing the previous government’s excessive borrowing, the Finance Minister stated that reckless borrowing in the past elevated Bangladesh’s debt risk from a low to a moderate level. By the end of the 2024-25 fiscal year, the government’s total debt stood at approximately BDT 21.44 lakh crore, which is 38.61 percent of the country’s total GDP. Of this, domestic debt amounted to BDT 11.95 lakh crore and foreign debt to BDT 9.49 lakh crore. The current government is obligated to repay the principal and high interest on this massive inherited debt, which places immense pressure on the current public financial system.
To reduce this debt dependency, plans have been made to decrease bank loans by BDT 6,000 crore in the upcoming fiscal year, expedite the listing of state-owned enterprises on the stock market, and expand bond and equity financing. Furthermore, the Finance Minister also highlighted plans to establish private investment funds in Hong Kong, London, and New York to attract foreign investment.
The Finance Minister stated that the government has taken a strict stance against financial crimes. As of May 2026, assets totaling BDT 72,343 crore have been seized or frozen both domestically and internationally in 11 priority cases.
He informed that 23 Mutual Legal Assistance (MLA) requests have been sent to 13 countries to recover laundered money, and agreements in this regard have been finalized with Malaysia and Hong Kong.
Additionally, legal proceedings have been initiated against six large debtor institutions, and more than 15 affected banks have signed over 60 confidentiality agreements with international asset recovery firms.