The proposed national budget for the 2026–27 fiscal year has allocated Tk 40,245.83 crore for Bangladesh’s Local Government Division. Of this, Tk 6,510.04 crore is earmarked for operating expenses and Tk 33,735.79 crore for development activities. The allocation was detailed in government documents presented to the National Parliament on Thursday.

Compared to the revised budget of Tk 44,242.56 crore in 2025–26, the new allocation marks a reduction of about Tk 3,996.73 crore. Despite the decrease, the budget emphasizes major initiatives such as the nationwide safe water supply program, which includes installing new water sources, rural pipe water schemes, and arsenic mitigation in coastal and vulnerable areas. It also highlights the “Climate-Resilient Rural Infrastructure Construction and Preservation” project to strengthen rural development against climate impacts.

The budget further outlines programs to enhance rural livelihoods through road, bridge, and culvert construction, modernization of rural markets, and excavation of ponds and canals. It also prioritizes infrastructure repair for educational, social, and religious institutions and aims to improve the accuracy of birth and death registration across the country.