Bangladesh has proposed a significant increase in defence and security spending for the 2026–27 fiscal year, reflecting the government’s commitment to strengthening military capabilities, enhancing border security and advancing long-term modernisation plans amid evolving regional and global security challenges.
Finance Minister Amir Khosru Mahmud Chowdhury announced a proposed allocation of Tk 42,497 crore (BDT 424.97 billion) for the Ministry of Defence while presenting the national budget in the Jatiya Sangsad on Thursday. The allocation represents an increase of approximately Tk 1,646 crore over the previous fiscal year’s budget and around 4.5 per cent above the revised defence expenditure for FY2025–26.
The defence allocation forms part of the government’s proposed Tk 938,000 crore national budget, presented under the theme of building a democratic, humane and inclusive economy.
Beyond the annual defence budget, Bangladesh is also considering a proposed Tk 27,000 crore special military modernisation fund, while law enforcement and paramilitary forces are set to receive Tk 31,099 crore under the FY2026–27 budget. Taken together, the proposals point towards one of the most ambitious security-sector investment programmes in the country’s history.
Defence Budget Continues Upward Trajectory
Defence spending has steadily increased over recent years as Bangladesh seeks to maintain operational readiness while gradually modernising its armed forces.
| Fiscal Year | Defence Allocation |
|---|---|
| FY2023–24 | Tk 38,174 crore |
| FY2024–25 | Tk 39,415 crore |
| FY2025–26 | Tk 40,661 crore |
| FY2026–27 (Proposed) | Tk 42,497 crore |
According to budget documents, the proposed FY2026–27 allocation comprises approximately Tk 40,880 crore for operational expenditure and Tk 1,611 crore for development expenditure.
Operational spending covers personnel costs, training, operations and maintenance, while development expenditure supports infrastructure projects, procurement programmes and capability enhancement initiatives.
The budget also allocates Tk 44 crore to the Armed Forces Division (AFD), the body responsible for military policy coordination, strategic planning and force deployment.
Armed Forces Division and Operational Responsibilities
The Armed Forces Division plays a central role in coordinating military operations, strategic planning and national security policy. Its responsibilities include wartime preparedness, overseas deployments, United Nations peacekeeping operations, disaster response missions and support to civil authorities during national emergencies.
Budget documents indicate that the allocation will also support infrastructure development, implementation of international obligations such as the Chemical Weapons Convention, senior officer management and coordination of joint intelligence activities.
Bangladesh remains one of the world’s leading contributors to UN peacekeeping operations, making overseas deployment planning and support a continuing priority.
Increased Funding for Law Enforcement and Paramilitary Forces
The FY2026–27 budget also provides a substantial increase in funding for Bangladesh’s law enforcement and paramilitary organisations, highlighting the government’s broader approach to national security.
According to the budget proposal, Tk 31,099 crore has been allocated for law enforcement and paramilitary forces, compared with the revised allocation of Tk 27,173 crore in FY2025–26. The increase of Tk 3,926 crore, or more than 14 per cent, represents a significant expansion of funding for institutions responsible for border management, maritime security and internal security operations.
The allocation covers several key organisations, including Border Guard Bangladesh (BGB) and the Bangladesh Coast Guard, both of which continue to assume increasingly important responsibilities in protecting the country’s land and maritime frontiers.
The enhanced funding is expected to support improvements in surveillance systems, operational readiness, infrastructure development, personnel welfare and the acquisition of modern equipment. For the Coast Guard, the allocation is particularly important as Bangladesh expands its maritime presence in the Bay of Bengal and seeks to protect fisheries, offshore resources and maritime trade routes.
Similarly, Border Guard Bangladesh is expected to strengthen border surveillance, combat cross-border crime and improve operational capabilities along sensitive frontier regions.
Special Modernisation Fund Signals Major Strategic Shift
Beyond the regular defence budget, Bangladesh is preparing to undertake one of the most extensive military modernisation efforts in its history.
According to defence sources, the Ministry of Defence has proposed a special allocation of approximately Tk 27,000 crore (around US$2.2 billion) for the 2026–27 fiscal year to support a comprehensive programme of military modernisation across the Army, Navy and Air Force.
The proposal, currently under review by the Ministry of Finance, is separate from the country’s annual defence budget and would provide dedicated funding for major procurement programmes, strategic infrastructure development and the expansion of indigenous defence manufacturing capabilities.
If approved, the special allocation would represent a significant acceleration of Bangladesh’s long-term military transformation plans under the Forces Goal 2030 framework.
The funding is expected to support the acquisition of advanced military hardware, construction of critical military infrastructure, development of local maintenance and support facilities, and the expansion of domestic defence industrial capabilities through technology transfer and local production initiatives.
The proposal reflects a growing emphasis on technological self-reliance and strategic resilience as Bangladesh adapts to an increasingly complex regional security environment and seeks to reduce long-term dependence on foreign support for sustainment and maintenance.
Should the proposal receive final approval, it would constitute one of the largest single investments in Bangladesh’s military capabilities since the launch of Forces Goal 2030.
Modernisation Programmes Gather Momentum
While Forces Goal 2030 has progressed gradually over the past decade, several important acquisition and capability-development programmes have advanced during the past year.
Bangladesh Navy
In May 2026, the Bangladesh Navy took delivery of the former Royal Navy survey vessel HMS Enterprise, which is expected to undergo regeneration and modification work in the United Kingdom before entering operational service.
The vessel will strengthen the Navy’s hydrographic survey, maritime domain awareness and oceanographic research capabilities, supporting both defence and maritime governance requirements.
Bangladesh Air Force
The Bangladesh Air Force (BAF) continues to pursue modernisation initiatives aimed at enhancing both operational capability and domestic industrial capacity.
In January 2026, the BAF signed a government-level agreement with China’s China Electronics Technology Group Corporation (CETC) to establish a local unmanned aerial vehicle (UAV) manufacturing and assembly facility in Bangladesh.
The project represents a significant step towards indigenous production of military drone systems and aligns with the government’s broader objective of developing a domestic defence-industrial base.
The Air Force is also pursuing a next-generation fighter aircraft programme. In December 2025, the BAF signed a Letter of Intent with Italy’s Leonardo regarding the potential acquisition of Eurofighter Typhoon multirole combat aircraft.
If realised, the programme would mark one of the most significant capability upgrades in Bangladesh Air Force history and substantially enhance the country’s air defence and precision-strike capabilities.
Bangladesh Army
The Bangladesh Army continues to pursue several procurement programmes designed to improve mobility, firepower and battlefield effectiveness.
Current acquisition efforts reportedly include Sikorsky Black Hawk medium-lift helicopters, Russian-made Metis-M1 anti-tank guided missiles, US-manufactured Javelin anti-tank missile systems, rocket artillery systems and additional artillery capabilities sourced from Türkiye.
These programmes are intended to enhance operational flexibility, anti-armour capability and precision-strike effectiveness across a broad range of mission requirements.
Strategic Outlook
Taken together, the proposed Tk 42,497 crore defence budget, the Tk 31,099 crore allocation for law enforcement and paramilitary forces, and the proposed Tk 27,000 crore special military modernisation fund point towards a significant expansion of Bangladesh’s overall security investment strategy.
If approved in full, the combined allocations would represent more than Tk 100,000 crore directed towards military modernisation, border security, maritime protection, law enforcement and strategic infrastructure development.
The scale of the proposed investment reflects growing recognition of the increasingly complex security environment facing Bangladesh, including maritime security challenges in the Bay of Bengal, protection of critical national infrastructure, regional strategic competition and the need to maintain credible deterrence capabilities.
While the regular defence budget continues to fund personnel, training and day-to-day operations, the proposed special modernisation fund could provide the financial foundation for a new generation of military capabilities across all three services. At the same time, increased allocations for Border Guard Bangladesh, the Bangladesh Coast Guard and other security agencies are expected to strengthen the country’s ability to secure its borders, protect maritime interests and respond effectively to both conventional and non-traditional security threats.
The proposals also highlight a growing emphasis on indigenous defence production and technological self-reliance. Initiatives such as local UAV manufacturing, expanded maintenance facilities and potential technology-transfer arrangements suggest that Bangladesh is increasingly seeking to build domestic industrial capacity alongside the acquisition of advanced military systems.
Although parliamentary approval and final implementation plans remain pending, the FY2026–27 budget proposals indicate that Bangladesh is entering a new phase of defence and security sector development. Should the proposed allocations be fully realised, they would constitute one of the most ambitious military and security investment programmes in the nation’s history and could significantly accelerate the modernisation of Bangladesh’s armed forces and security institutions over the coming decade.
M.Z. Rahman is a distinguished defence and aerospace industry veteran turned strategist, with over two decades of experience in regional security, military modernisation, and strategic policy. Holding a Master of Arts in International Relations and Security Studies from Waikato University, New Zealand, he has contributed extensively to leading think tanks and defence journals worldwide. As Chief Editor of BDMilitary, Rahman drives the editorial vision, delivering authoritative, rigorously researched insights that reflect the latest trends in defence and geopolitics. His work integrates industry expertise with strategic foresight, establishing him as a respected voice in global defence strategy.
