BDT 28,881 Cr Allocated for Agriculture, BDT 14,996Cr for Power Sector

Finance and Planning Minister Amir Khosru Mahmud Chowdhury on Thursday presented the proposed BDT 9.38 lakh crore national budget for the fiscal year 2026-27 (FY27) in the National Parliament, unveiling sweeping financial layouts and structural reforms for both the agricultural and power sectors.

The budget session was held with Speaker Hafiz Uddin Ahmed Bir-Bikram in the chair, highlighting the new BNP government's core commitments to national food security and sustainable, uninterrupted energy infrastructure.

BDT 28,881 Crore Allocated to Modernise Agriculture

In a major push to strengthen the foundation of the country's economy, the Finance Minister proposed an allocation of BDT 28,881 crore for the agriculture sector, which accounts for 3.2 percent of the country’s total GDP.

According to the budget documents, BDT 20,935 crore has been earmarked for operating expenditure and BDT 7,946 crore for development. 

Out of the total layout, BDT 22,963.47 crore falls under recurrent expenditure and BDT 5,917.91 crore is set for capital expenditure. 

Within these allocations, BDT 1,671 crore will be spent on wages and salaries, BDT 255.55 crore for administrative expenses, and BDT 17,001 crore for public nonfinancial corporations subsidies.

By comparison, the budgetary allocation for agriculture in FY26 was BDT 27,224 crore, which was later scaled down to BDT 24,825 crore in the revised budget.

The revised FY26 budget had also earmarked BDT 1,550.89 crore for cash wages and salaries, and over BDT 200 crore for administrative expenses.

“We are committed to developing the agricultural sector, which is the foundation of the country's economy and food security, into a self-reliant, climate-resilient and technology driven modern system,” Khosru stated during his speech. 

He emphasized that one of the primary targets is to ensure safe food and nutritional security through good agricultural practices while achieving a sustainable transformation of the rural economy.

Expansion of the 'Farmer Card' and Financial Concessions

To fulfill the electoral pledges of the BNP, the government is dramatically expanding its special "Farmer Card" programme, which was launched on April 14 this year. 

The card's safety net has now been extended to include fishermen, livestock farmers, and salt cultivators.

Following a pre-pilot phase in FY26 that provided cards to 22,065 farmers across 11 blocks in 11 upazilas of 10 districts, the government plans to distribute 42.5 lakh cards across 100 upazilas in FY27, with the ultimate goal of covering all farmers nationwide. 

Through this card, landless, marginal, and small farmers will receive an annual one-time cash assistance of BDT 2,500 alongside 10 other types of multifaceted benefits.

Furthermore, to lower production costs, the government is prioritizing affordable prices for fertilizers, seeds, and irrigation while driving agricultural mechanization. 

Agricultural and rural credit programs will expand through scheduled banks, and a 4 percent concessional interest rate will continue for the cultivation of pulses, oilseeds, spices, and maize to decrease import dependency.

To battle climate change, agricultural research will be boosted to develop salt-tolerant and drought-resistant crops. 

Additionally, youth employment will be fostered by formulating a new “Agropreneurship Start-up Policy” and an “Agricultural Cooperative Policy” to ensure the balanced distribution of modern technology and credit.

Power Division Receives BDT 14,996 Crore to Boost Grid Efficiency

Turning to energy, Finance Minister Amir Khosru proposed an allocation of BDT 14,996 crore for the Power Division to guarantee an uninterrupted supply of electricity and improve the overall efficiency of generation, transmission and distribution systems.

"The government has been working to increase generation capacity to 35,000 MW by 2030 and expand transmission lines to 25,000 circuit kilometers," the Minister declared, adding that modern technologies will be heavily promoted across industrial, agricultural, and residential sectors.

To aggressively drive the adoption of clean energy, the budget introduces a landmark zero percent tax rate on the solar power sector until 2035. 

"At the same time, I propose granting consumers a 5 percent tax rebate on payments made against their solar electricity bills," Khosru announced.

Reforming Capacity Charges and Integrating Nuclear Power

The Finance Minister took a firm stance on governance, stating that measures have already been initiated to ensure transparency and accountability in the power sector by preventing corruption and irregularities. 

This includes a systematic review of existing capacity charges and power purchase agreements (PPAs).

To lower tariffs, future power plants will be established strictly through competitive bidding processes, and special electrification drives will be targeted at remote and island areas. 

In metropolitan areas, work is currently underway to move distribution lines and substations entirely underground.

Looking ahead, the government plans to generate between 30 and 50 percent of its total electricity from renewable sources by 2050. 

Meanwhile, construction at the 2,400 MW Rooppur Nuclear Power Plant is progressing rapidly. 

The grid expects to receive its first 300 MW from the plant by August 2026, followed by an additional 1,200 MW by January 2027.

"Overall, our government is committed to establishing a self-reliant, affordable, uninterrupted, environmentally sustainable and modern electricity system," Khosru concluded.