(MENAFN) Bangladesh’s transitional administration, headed by economist Muhammad Yunus, sanctioned its inaugural national budget totaling 7.9 trillion taka (approximately $64.96 billion) on Monday for the fiscal year 2025-26, responding to a decline in foreign investments alongside persistent inflationary pressures.

The temporary advisory council endorsed the budget, which will take effect on July 1 through a presidential decree.

Salehuddin Ahmed, serving as the interim government’s finance adviser, introduced the budget proposal via a pre-recorded address aired on national channels.

This interim government came into power last August, following a student-led revolt that removed the administration of former Prime Minister Sheikh Hasina in July. Hasina subsequently fled to India in early August.

Describing the 2025-26 budget as “timely and realistic,” the finance adviser affirmed to the press that it "is implementable."

Compared to last year’s allocation of 7.97 trillion taka ($68 billion), this year’s budget is marginally smaller.

Official data from the Finance Ministry indicates that Bangladesh has experienced a foreign aid inflow of just over $1.6 billion during the first 10 months of the current fiscal year starting July 2024—a sharp 52.45% decrease compared to the same timeframe last year.

Inflation rates have hovered near 10% in recent months, posing significant challenges for lower-income populations.

The transitional government has stated that it inherited a vulnerable economy from the Sheikh Hasina administration, with the central bank governor, Ahsan H. Mansur, accusing the former regime of laundering roughly $20 billion over the past 15 years.

To alleviate the economic strain on poorer citizens, the new budget emphasizes expanding social safety net initiatives, fostering employment opportunities, curbing inflation, and enhancing trade and commerce.

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