Budget FY27: Govt proposes Tk500cr for AI sector

The government has proposed an allocation of Tk500 crore for artificial intelligence (AI), electronics industry development, and enhancing youth innovation capacity in the proposed FY2026-27 budget.

Officials say AI, electronics, and young people's innovative potential are being viewed as key drivers of national development and modernisation. The plan focuses on implementing AI-based development programmes and creating new entrepreneurs in the information technology sector.

Finance Minister Amir Khosru Mahmud Chowdhury, during the reading of his maiden national budget for FY2026-27 in the Parliament this afternoon (11 June), proposed the budget with a total outlay of Tk9.38 lakh crore, making it the largest national budget in Bangladesh's history.

The government is considering AI as a major opportunity for national progress. It plans to use AI to develop smart cities, make citizen services more user-friendly, and integrate AI into the education system to better prepare young people for future jobs.

According to sources at the Ministry of Finance, the 2026-27 fiscal year budget includes plans to build startups, freelancing opportunities, and AI-based entrepreneurship by using the skills, creativity, and innovation of young people. It also includes the use of AI-driven data centres in public statistics and service delivery to make decision-making more effective and dynamic.

The government also aims to improve citizen services, increase efficiency in administrative work, and ensure transparency and accountability through wider use of AI.

Officials say these initiatives will help transform Bangladesh into an innovation-driven, technology-based, and modern state. The proposed Tk500 crore fund will be spent on startup development, women entrepreneurs, women's development, and youth entrepreneurship.