Bangladesh’s finance adviser, Salehuddin Ahmed, announced an allocation of TK 4.8 billion (approximately $56 million) for the Ministry of Jute and Textile for the fiscal year 2025-26 (FY26) during the unveiling of the national budget. He specified that TK 2.32 billion is earmarked for operational costs, while TK 2.48 billion is designated for development initiatives.
In the revised budget for FY25, the ministry received an allocation of TK 4.98 billion.
The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has expressed its appreciation for the government’s decision to maintain the source tax on exports and corporate tax rates for industries in the proposed budget for the upcoming fiscal year.
This decision is particularly important for the ready-made garment (RMG) sector, which is currently facing significant challenges both domestically and globally. Factors such as recent US retaliatory tariffs, cancelled transshipments from India, high interest rates, rising wages, and frequent hikes in gas and electricity costs are contributing to this pressure, according to a BGMEA press release.
The proposed budget includes a plan to reduce the overall cost of electricity generation by 10% to gradually lower subsidies in the power sector. Furthermore, the government has decided against raising electricity prices in the near future to help control inflation, a move that the BGMEA has welcomed as highly advantageous.
