Clarification on Bangladesh Defence Budget Outlay in FY2025-26: Q & A

Reading Time: 3 minutes Notes: Defence spending in Bangladesh covers allocations for the Army, Navy and Air Force under the Ministry of Defence. Law enforcement (Police, RAB) and Paramilitary forces (BGB, BCG, Ansar-VDP) are funded through allocations under Ministry of Home Affairs. Approximately 60% of Bangladesh’s defence spending is allocated for payment of salaries, maintenance of inventories, and other upkeep leaving a meagre ‘development’ budget, which traditionally funds construction of defence related infrastructure. Defence budget of FY2025-26 Tk 40,698 crore is equivalent to Tk 38,214 crore if inflation is taken in to account. Q1: Has Bangladesh’s defence budget decreased in FY2025-26?A: Yes, the official defence budget for FY2025-26 has decreased by approximately 3.1%, from BDT 42,014 crore in FY2024-25 to BDT 40,698 crore. Q2: Does this budget cut mean Bangladesh is reducing its defence capabilities?A: Not necessarily. While the official budget shows a reduction, Bangladesh employs various financial mechanisms to