PM calls FY27 budget ‘life-centric’, proposes sweeping pro-people reforms

Prime Minister Tarique Rahman on Monday proposed a series of major amendments to the FY27 national budget, describing it as a “life-centric” blueprint for rebuilding the

Participating in the general discussion on the budget in Parliament, the prime minister urged the withdrawal of the controversial black money whitening provision, proposed easing several tax measures, reaffirmed his government’s commitment to recovering laundered money and vowed to implement the Teesta Barrage Master Plan “at any cost”.

Addressing the House chaired by Speaker Hafiz Uddin Ahmad, Tarique said the budget was designed to help people from all walks of life while rebuilding an economy damaged by years of mismanagement.

“I would call it a life-centric budget,” he said, adding that the government would strive to present a “sound, balanced and realistic” budget.

He said previous misgovernance had severely undermined public confidence in the banking and capital markets, recalling that stock market manipulation had driven many small investors to despair. Under the leadership of the current finance minister, he said, the government was working to restore the capital market as a reliable source of long-term investment while strengthening discipline in the banking sector.

The prime minister also reiterated the government’s commitment to recovering laundered money. 

He informed Parliament that 23 Mutual Legal Assistance Requests (MLARs) had been sent to 13 countries, while more than 60 non-disclosure agreements had been signed between 15 affected local banks and international asset recovery agencies.

He said the government would utilise both domestic and international legal frameworks to bring back stolen national assets.

Responding to public concerns, Tarique requested the finance minister to withdraw the provision allowing the legalisation of undisclosed income and also scrap the proposed mandatory Taxpayer Identification Number (TIN) requirement for opening bank accounts, registering deed transfers and property mutation.

He further proposed full income tax exemption for ethnic minority communities living in both the plains and the Chittagong Hill Tracts.

The prime minister also recommended reducing the proposed 10% tax on private universities to 5%, while urging them to strengthen research, establish language laboratories and provide free education for underprivileged but meritorious students.

“The education system was deliberately weakened during the Awami League regime. Comprehensive reforms are essential to prepare future generations for the challenges of the times,” he said.

Welcoming the Tk500 crore Startup Fund for freelancers and young entrepreneurs, he also proposed reducing VAT on advertisements on OTT platforms, social media and search engines from 15% to 5% to discourage informal transactions through hundi and encourage legitimate revenue collection.

To support domestic production, he proposed broad duty and VAT exemptions for sectors including shrimp, industrial raw materials, electrical and light engineering, and green energy and logistics.

On regional development, Tarique declared that implementing the Teesta Barrage Master Plan was a top national priority. 

Acknowledging persistent water shortages in Rajshahi and Rangpur divisions, he also announced that work had begun on the Padma Barrage to store excess monsoon water for irrigation during the dry season.

He further unveiled a five-year master plan to excavate and re-excavate 20,000 kilometres of canals nationwide, noting that 900 kilometres had already been completed in the past three months.

Highlighting support for agriculture, he said the government had waived agricultural loans of up to Tk10,000, including interest, for 1.3 million farmers. It has also introduced a Farmer Card, under which eligible farmers will receive Tk2,500 annually along with 10 additional benefits. The government aims to distribute the cards to 4.3 million farmers during FY27.

The prime minister also announced plans to mainstream creative industries – including cinema, theatre, OTT, gaming and software – to generate employment and foreign exchange earnings. 

He said a National Remuneration Structure for athletes would be introduced for the first time, alongside the inclusion of sports as a standalone subject in the national curriculum and a nationwide youth talent hunt programme.

To support migrant workers, the government is developing an Expatriate Card to reduce bureaucratic and legal obstacles both at home and abroad.

Emphasising judicial independence, Tarique sought an additional Tk100 crore allocation for the Supreme Court and Tk500 crore for the Law Ministry. 

He also stressed the need to diversify energy sources, expand domestic gas exploration and accelerate renewable energy development to reduce dependence on imports.

During the debate, the prime minister also directed the finance minister to examine a complete duty waiver on bicycles following a proposal from the opposition leader.

Concluding his speech, Tarique called on all political parties to work together on constitutional and structural reforms to build a just, inclusive and self-reliant Bangladesh.

Finance Minister Amir Khosru Mahmud Chowdhury later delivered his winding-up speech on the proposed Tk9.38 lakh crore budget for FY27, which was placed in Parliament on 11 June.