Defense budget reduced in 2025-26 FY

The interim government has proposed a reduced allocation for defense sector in the upcoming 2025-26 budget. 

Finance Adviser Dr. Salehuddin Ahmed announced during the budget speech on Monday that the defense sector will receive Tk 40,698 crore, which is Tk 1,316 crore less than the allocation for the fiscal year 2024-25.

The proposed budget for defense includes Tk 37,812 crore for operational expenses of defense services and Tk 916 crore for development costs. 

Additionally, Tk 1,923 crore is allocated for other services under Ministry of Defense and Tk 47 crore for the operational expenses of the Armed Forces Division.

The total proposed national budget for 2025-26 stands at  Tk 7,90,000 crore, which is 7,000 crore taka less than the current year’s budget; marking the first time in Bangladesh’s history that the budget size has shrunk compared to the previous year.

SH