Bangladesh's 2026–27 defence budget rises nominally, contracts in real terms

Janes forecasts limited growth in Bangladesh's defence spending over the coming few years (Janes Defence Budgets)

Bangladesh has announced a defence budget of BDT424.9 billion (USD3.4 billion) for 2026–27. Proposed in parliament on 11 June, the new expenditure represents a 4.5% increase over the revised 2025–26 defence budget of BDT406.6 billion.

According to budgetary documents issued by the Ministry of Finance, the 2026–27 allocation comprises BDT408.8 billion for Ministry of Defence (MoD) operating costs and BDT16.11 billion for development spending.

Operating costs, which cover military salaries, operations, and maintenance, rose by about 3% from the revised 2025–26 allocation, while development funding, including military procurement, increased by around 76%.

The defence budget also includes BDT439 million in operating expenses for the Bangladesh Armed Forces Division, which oversees policies and force deployment. This represents a decrease of about 6.6% over the revised authorisation for 2025–26.

Bangladesh's armed forces modernisation is guided by the Forces Goal 2030 programme, which was launched in 2010 and revised in 2017. However, procurement activity under the initiative has remained limited.

In May the Bangladesh Navy took delivery of the former UK Royal Navy survey vessel that was in service as HMS Enterprise. According to the Bangladesh Navy, the vessel will undergo regeneration works in the UK before entering service.

In January, the Bangladesh Air Force (BAF) signed a government-level agreement with China Electronics Technology Group Corporation (CETC) to support local unmanned aerial vehicle (UAV) production. Under the deal, the BAF and CETC agreed to establish a UAV manufacturing and assembly facility in Bangladesh.

The BAF also signed a letter of intent (LOI) with Italian aerospace firm Leonardo SpA in December 2025 for procuring Eurofighter Typhoon aircraft to meet the service's requirement for a modern multirole combat aircraft.