Budget FY27: Tk5,000cr stimulus to be proposed for SMEs, Tk2,000cr more for low cost loans

The government has taken an initiative to form a Tk5,000 crore stimulus fund to boost the Cottage, Micro, Small, and Medium Enterprises (CMSME) sector, a key driver of the country's economy and to generate employment.

In addition, a proposal will be placed to allocate a further Tk2,000 crore in the upcoming FY2026-27 budget for distributing low-interest loans through the Infrastructure Development Company Limited (IDCOL), Bangladesh Infrastructure Finance Fund Limited (BIFFL), and the SME Foundation.

According to sources within the Ministry of Finance and the National Board of Revenue (NBR), the national budget for FY2026-27 will be presented in parliament today (11 June). The budget is set to include several new initiatives aimed at boosting production, employment, and the flow of credit to the private sector.

Bangladesh Bank has already announced a Tk60,000 crore "Stimulus Package 2026", of which Tk41,000 crore will come from refinancing schemes and Tk19,000 crore from the central bank's own funds.

The package outlines financing plans across five major sectors. This includes Tk20,000 crore for large industries and the service sector, Tk10,000 crore for agriculture and rural economic activities, Tk5,000 crore for the CMSME sector, Tk3,000 crore for export diversification, and Tk3,000 crore for developing high-value agricultural hubs.

Under the refinancing scheme, the government will provide a 6% interest subsidy to keep lending rates affordable. Officials estimate that the initiative could help create employment opportunities for more than 25 lakh people.

To keep interest rates affordable on loans disbursed under the refinancing scheme, the government will provide a 6% interest subsidy. Government estimates that this comprehensive programme will create more than 25 lakh new employment opportunities.