June 5, 2025
The interim government of Bangladesh has announced a defence budget of BDT 408.51 billion (approximately USD 3.34 billion) for the fiscal year 2025–26. This figure represents a 3.6% increase compared to the revised budget of the previous year. However, when adjusted for inflation, the real value of the budget sees a decline of approximately 3.1%, underscoring the economic pressures facing the nation.  
The budget allocation comprises BDT 300.35 billion for operating expenses, including military salaries and maintenance, marking a 4.5% increase from the previous year. Conversely, development expenses, which cover military procurement and modernization, have been reduced by about 24% to BDT 9.16 billion. 
This fiscal approach reflects a strategic shift in the nation’s defence planning. While the Forces Goal 2030 modernization program remains a priority, the interim government appears to be adopting a more conservative stance, focusing on sustaining current capabilities rather than pursuing expansive growth. 
The broader national budget for 2025–26 totals BDT 7.9 trillion, with the defence allocation constituting approximately 5.2% of this figure. This proportion indicates a balanced approach to national spending, aiming to address both security needs and economic stability.
As Bangladesh navigates these fiscal constraints, the defence sector’s focus on efficiency and strategic planning will be crucial in maintaining national security without exacerbating economic challenges.
