Bangladesh increases defence budget but gains offset by inflation

Janes Defence Budgets forecasts that Bangladesh's military spending will increase to about USD3.6 billion by the end of this decade. (Janes Defence Budgets)

The government of Bangladesh has announced a 2025–26 defence budget of BDT408.51 billion (USD3.34 billion). The budget is the first announced by the country's interim administration, following the ousting of the government of former Prime Minister Sheikh Hasina in July 2024.

The new defence allocation – announced on 2 June 2025 – represents an increase of 3.6% compared with the revised 2024–25 defence budget of BDT394.15 billion but a decline of 3.4% against that year's original defence expenditure of BDT423.14 billion. Any gains in the new defence budget, however, are offset by inflation, which continues to run high in the country.

Documents issued by the Bangladesh Ministry of Finance (MoF) show that the 2025–26 defence budget comprises BDT300.35 billion for Ministry of Defence (MoD) operating expenses and BDT9.16 billion for MoD development expenses.

MoD operating expenses, including military salaries and costs for operations and maintenance, increase in the 2025–26 budget by 4.5% compared with the revised allocation for 2024–25. Funds for MoD development expenses, including military procurement, decline by about 24%.

Outside MoD expenses MoF budget documents also show that BDT470 million has been allocated for the Bangladesh Armed Forces Division, which oversees policies and force deployment. This represents an increase of 10% over the revised authorisation for 2024–25.

Modernisation

The Bangladesh Armed Forces modernisation programme is called Forces Goal 2030. The plan was launched in 2010 and revised in 2017, although it will likely undergo review by Bangladesh's new government. The country's next general election is likely to be held in late 2025 or early 2026.