The government has proposed allocating Tk 500 crore annually to a dedicated 'Startup Fund' in the proposed budget for fiscal year 2026-27, aiming to nurture a new generation of entrepreneurs, particularly women and youth, as it bets big on the ICT sector as a future economic engine.

Finance Minister Amir Khosru Mahmud Chowdhury made the proposal while presenting the Tk 9,38,000 crore national budget in parliament on Thursday.

"ICT will play a pivotal role in transforming Bangladesh into an innovation-driven, technology-rich and self-reliant state," the minister said, adding that the fund would support women entrepreneurs, women's development initiatives, and young entrepreneurs.

Despite its vast potential, the ICT and telecom sector currently contributes only 1-2 percent to the country's GDP. The minister set an ambitious target of raising that share to 10 percent within the next five years.

In a significant policy shift, the minister proposed extending tax exemptions, currently limited to IT-sector freelancers, to all categories of freelance income, allowing earners to bring their foreign income home through formal banking channels.

He also proposed making all income from content creation tax-free to encourage youth innovation, and reducing turnover tax to zero percent for startups, innovative ventures and tech-based businesses led by young entrepreneurs.

The minister said reforms are already underway to ensure affordable, reliable, and high-speed internet access nationwide. Within the first 100 days, free high-speed internet was rolled out at all airports, seven railway stations, and intercity trains.

Over the past four months, the government has added 41 lakh new 4G mobile connections and four lakh high-speed broadband connections.

Plans are in place to ensure broadband speeds of 100 Mbps to 1 Gbps across both urban and rural areas. A Digital Public Infrastructure (DPI) framework along with a 'One Citizen, One ID, One Wallet' initiative will also be launched to facilitate cashless transactions and simplify access to public and private services.

The government is also working to develop semiconductor technology capabilities and position Bangladesh as a leading global electronics manufacturing hub through coordinated policy, regulatory frameworks, and financial incentives for the private sector.

The budget also targets creating 2 lakh new jobs annually in the technology sector.