The BGA Bangladesh Team led by Chairman Nurul Islam wrote an update to clients on the new Bangladesh budget and how it aims to boost the economy amid global headwinds.


  • Amid rising inflation and global tightening of financial markets, the government of Bangladesh approved a $72.6 billion (BDT 6.78 trillion) national budget for the 2022-23 fiscal year. The new budget aims to overcome the negative impact caused by the COVID-19 pandemic and accelerate economic growth in the country. Parliament unanimously passed the budget on June 30, 2022.
  • The budget allocation for FY 2022-23 ($72.6 billion) increased by 14.2 percent over the previous year. Public administration, education and technology, and transport and communication were prioritized in this year’s budget with the three groups allocated 19.9 percent, 14.7 percent and 12 percent of the budget, respectively.


  • The government reduced the corporate tax rate for all export-oriented industries to 12 percent to diversify exports. Previously, only the Ready-Made Garments (RMG) industry enjoyed a reduced rate, but now businesses labeled as green factories, the textile industry and Bangladeshi-flagged oceangoing ships will also receive reduced rates.
  • This year’s budget attempts to shield Bangladeshi citizens and businesses from external inflationary pressure and depreciation of the taka through sector-specific allocations and assistance. For example, the budget reduced the source tax on raw materials for manufacturers significantly to promote the growth of businesses.


  • Companies can view the new budget as business-friendly. Finance Minister A.H.M. Mustafa Kamal acknowledged the inflationary pressure due to supply chain disruptions and a volatile international commodity market exacerbated by the Russia-Ukraine conflict.
  • Companies can expect the budget will attempt to provide support to local industries and export-oriented sectors from economic challenges, and to allocate substantial subsidies for the energy and health sectors to provide the population relief from spiraling inflation.

BGA will continue to keep you updated on developments in Bangladesh as they occur. If you have any comments or questions, please contact BGA Bangladesh Chairman Nurul Islam at