Bangladesh’s FY2025-26 Defence and Public Security Budget Reflects Austerity Priorities

Reading Time: 4 minutes The interim government of Bangladesh has tabled the national budget for the fiscal year 2025-26, announcing a total outlay of Tk 7,90,000 crore. Notably, the combined allocation for the Ministry of Defence and the Ministry of Home Affairs stands at Tk 71,737 crore. This represents approximately 9.1 percent of the total national budget. While internal security allocations have seen moderate growth, the core defence budget has been reduced for the first time in years, signalling a policy shift driven by fiscal constraints and political uncertainty. The Ministry of Defence has been allocated Tk 40,698 crore in the upcoming fiscal year, reflecting a decrease of Tk 1,316 crore compared to the previous year’s proposed budget of Tk 42,014 crore. This reduction contradicts widespread expectations among security analysts and armed forces planners who had anticipated an increase to at least Tk 55,000 crore. The resulting shortfall of Tk