The document discusses Bangladesh's defense budget for fiscal year 2016-2017. Key points include: - The defense budget allocation for FY17 was Tk. 21,738.8 crore, a 20.4% increase from the previous year. 98.2% was for non-development expenditures and 1.8% for development. - The budget aims to improve the capacity and modernize the army, navy, air force, and border guards. Major procurements include missiles from Russia and combat aircraft and submarines from China and India. - On average, defense expenditure has increased 15.1% per year over FY11-FY17, while actual budget expenditures have risen 17.

1. BUDGET CONTRIBUTION TO
MILITARY AND DEFENCE SECTOR
: BANGLADESH PERSPECTIVE
FY 2016-2017

2. WHY WE NEED DEFENCE BUDGETS?
 To protect the national sovereignty and security
 To impart training related to modern war techniques
 To expand application of information technology for
increasing efficiency of the defense forces
 Weather observation, research, and advanced warning

3. Target of FY17 defence budget
To improve the capacity and efficiency of army,
navy, air force and border guards
And
To modernize them

4. 98.2%
(Tk.21,738.8crore)
The budget allocation for Defense for FY17
Development expenditure Non development expenditure
GROWTH
20.4%Tk. 22,144.6crore
FROM PREVIOUS YEAR
(TK.18,383 crore)
1.8%
(Tk.405.8crore)

5. CONTINUED………..
 USD 2.8 billion 7% increase over the revised expenditure for FY 16
BDT212.48 billion for BDT4.06 billion for "development" costs
"non-development" costs includes
includes
Military salaries
Maintenance costs
operations
Defence procurement
BDT4.76 billion, are split between the Defence
ministry and the armed forces division.

6. Source of financing for Defence: Foreign
Russia
1.5 billion
china
503
million
INDIA
500 Million For
Defence
procurement

7. Source of financing for Defence Budgets
:Domestic
Tax Base Non-Tax Base
2031.52 (billion) 1293.04(billion)
of which
196.09(billion) will go to Defense Services.
Source: Bangladesh Defence portal

8. Source: Centre for Policy Dialogue

9. On average, the revised budget is 6.3% more than the
allocation
The actual spending is 3.3% higher than the revised
budget
Actual expenditure is about 9.7% greater than the
respective allocation over the fiscal years FY11
through FY15

10. EXPECTATION
Explicit allocation for Defense
services
has past trend
To increase at the end of the year

11. Fy 2011-12 Fy 2012-13 Fy 2013-14 Fy 2014-15 Fy 2015-16 Fy 2016-17
Defence budgets as % of GDP
1.2%
1% 1%
1.2%
1.1%
1.13%
Source: Centre for Policy Dialogue

12. SECTOR SHARE IN
BFY 17
SHARE IN
RBFY 16
CRORE TK.
%
DEFENCE
SERVICES
6.5% 7.8% 1436.0 6.9%
Portion of public expenditure
SECTOR SHARE IN
BFY 16
SHARE IN
RBFY 15
CRORE TK.
%
DEFENCE
SERVICES
6.2% 7.2% 613.0 3.4%
SECTOR SHARE IN
BFY 15
SHARE IN
RBFY 14
CRORE TK.
%
DEFENCE
SERVICES
6.6% 7.0% 1282.0 8.4%
Changes from the previous periods

13. Over the period FY11-FY17
Average increase of Defence
expenditure(%)
Increase of budget
expenditure (%)
15.1% per annum 17.1% per annum

14. Special budget
1500
crore
taka
Anti-Tank
Guided
Missile
Bangladesh
army
8 Multi-
Role
combat
aircraft
Bangladesh
Air force
Bangladesh
army PF-98
Ming class
submarines

15. Major challenges for Defence service and its budget
GDP
2.3% in the world
1.8% in Lower Middle Income countries
1.4% in LDCs
Thus, Bangladesh’s military spending is comparatively lower as a share of GDP when
compared to global averages
Make it consistent with other sector
There are many important sector which need more attention
Like, Health where recent budget are squeezed
Proper training and communication
problem

16. Overcoming the challenges
Holding joint civil-military exercises under the umbrella of SAARC, Bimstec.
Testing and improving doctrines and interoperability (the ability of military
equipment or groups to operate in conjunction with each other)
For communication problems at a third language along with English
Can be made mandatory
For budget problem make it consistent with other sector with stratrgic
planning

17. CONTRIBUTION OF BANGLADESH DEFENCE SECTOR
 UNITED NATION peace keeping
 Recent satisfactory mission against counter
terrorism
 Actions against violence in the country targeting
minorities, liberals and foreigners

18. ARE WE GOING TO THE RIGHT DIRECTION?
Forces Goal 2030
Planned attempt to modernize the Bangladesh Armed Forces.
Emphasises quality equipment
Better training and increasing mobility.

19. CONTINUE…….
1. INCREASE DEFENCE EXPENCE by 20.4%
2. $1.5 billion deal with Russia, the largest in Bangladesh
history.
3. BANGLADESG NAVY signed a $503 million deal with China.
4. Deal signed with India for defence procurement
5. Modernized plans, like submarine purchase