Government proposes Tk 42,291 crore for defence sector in 2026-27 budget

The proposed budget for the 2026-27 fiscal year has given special priority to the defence sector. Finance Minister Amir Khasru Mahmud Chowdhury presented a record Tk 9,38,000 crore budget in the National Parliament on Thursday afternoon, June 11. This is the first budget of the current government led by Prime Minister Tarique Rahman and the 55th national budget of the country.

The proposed budget allocates Tk 42,291 crore to the defence sector, which is Tk 1,593 crore higher than the outgoing 2025-26 fiscal year. The previous fiscal year allocated Tk 40,502 crore to this sector.

The breakdown of the allocation shows Tk 38,721 crore for defence service operating expenses, Tk 1,611 crore for development projects, and Tk 1,959 crore for operating expenses of other services under the Ministry of Defence.

The allocation has been increased to further strengthen military capabilities in continuation of the implementation of Forces Goal 2030.

During the budget presentation, the finance minister said that against this Tk 9,38,000 crore budget, the revenue collection target has been set at Tk 6,95,000 crore, resulting in a deficit of Tk 2,43,000 crore. The government plans to finance this deficit through both domestic and foreign sources.

The budget was approved by the cabinet and the president before its presentation in parliament, following constitutional procedures.

The government hopes that this budget will achieve development goals, including modernisation of the defence sector, while maintaining economic stability.