Budget priorities AI, digital infrastructure as core of human capital agenda
The budget aims to lift the ICT sector’s contribution to GDP from the current 1-2% to 10% within five years
The government, in its FY27 proposed budget, prioritises artificial intelligence (AI), digital infrastructure and connectivity as core pillars of a shift toward an AI-enabled economy and future-ready workforce.
The budget aims to lift the ICT sector's contribution to GDP from the current 1-2% to 10% within five years, driven by investment in digital infrastructure, emerging technologies and human capital development.
The science and technology ministry has been allocated Tk18,115 crore, up from Tk17,792 crore in the revised FY2025-26 budget, while the ICT Division will receive Tk2,049 crore.
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The allocations support plans to set up specialised laboratories for AI, semiconductors, robotics, machine learning and big data analytics, alongside integrating AI into public services and governance.
The government's digital transformation agenda also includes AI-driven data systems, digital public infrastructure, and a "One Citizen, One ID, One Wallet" framework to improve service delivery and financial inclusion.
To spur innovation, the budget proposes a Tk500 crore startup fund targeting young and women entrepreneurs in ICT, alongside support for AI-based entrepreneurship, freelancing and content creation.
On connectivity, the Posts and Telecommunications Division gets Tk2,141 crore to expand 5G coverage to 90% of the population, raise broadband speeds to 100 Mbps, and establish a National Fibre Bank to strengthen rural connectivity.
However, experts warn that infrastructure growth alone may not translate into productive human capital without affordability and access to digital tools.
Hasanat Rahman, an HSC student from Shailkupa, Jhenaidah, said many rural youths want digital skills but struggle to access online learning platforms and resources.
BM Mainul Hossain, director and professor at the Institute of Information Technology, University of Dhaka, said reducing digital inequality is the key challenge.
"Infrastructure is necessary, but quality training, especially teacher training, is equally important to turn digital investment into productive human capital," he said.
Ashikur Rahman, principal economist at the Policy Research Institute, said connectivity must be linked to a broader digital public infrastructure strategy. "Rural inclusion will not come from coverage targets alone. Broadband enables learning; learning builds skills; and skills must connect to jobs and entrepreneurship," he said.
