Finance Minister Amir Khasru Mahmud Chowdhury on Thursday proposed allocating Tk2,188 crore for the Law and Justice Division for the fiscal year (FY) 2026-2027, which is Tk28 crore higher than the allocation in the revised budget in FY 2025-2026.
The finance minister, in his budget speech, also proposed Tk49 crore for the Legislative and Parliamentary Affairs Division for the FY 2026-27.
To improve the business environment and judicial efficiency, the finance minister proposed plans to expand bilateral investment treaties and update double taxation avoidance agreements to strengthen the legal protection of investors.
"The scope for Alternative Dispute Resolution (ADR) in income tax disputes will be expanded to allow for easier resolution without formal appeals," the minister said in his speech.
Chowdhury said the government will encourage the use of pre-suit mediation for the recovery of defaulted loans to reduce lengthy court procedures and improve recovery efficiency, adding the government is reviewing a specialized dispute resolution mechanism for capital market disputes, including the possibility of establishing a special tribunal or fast-track court with legal authority to enforce decisions.
Meanwhile, Tk291 crore was proposed for the Supreme Court in the budget for FY 2026-2027, which was 270 crore in the revised budget of the outgoing fiscal.
