Originally posted in Dhaka Tribune on 29 May 2025
Budget FY26: Lesser schemes, greater number of beneficiaries
The interim govt plans to increase the number of beneficiaries for specific programs and their monthly allowances for core cash assistance in the social safety net sector
The interim government is planning to reduce social safety net programs from 140 to fewer than 100 in the proposed budget for FY26.
They also plan to increase the number of beneficiaries for specific programs and their monthly allowances for core cash assistance in the social safety net sector.
Furthermore, the amount of allowances in eighty specific programs will be raised from a minimum of Tk50 to a maximum of Tk150 per person.
To save money, several programs, including savings certificate interest and the previous government’s Ashrayan Prokolpo, may be let go due to austerity measures.
However, at the same time, some new projects are going to be included, including financial assistance to the families of the July martyrs and injured.
Seeking anonymity, an official of the Finance Division under the Ministry of Finance involved in budget preparation told Dhaka Tribune that currently the government is implementing social security programs through 140 programs under 26 ministries. But in the upcoming budget, the government decided to recast the social safety net budget.
“It has been decided that the allocation for interest on savings certificates in the operating budget of this sector will be shown in another sector. However, other programs, including pensions of government employees and subsidies in the agricultural sector, will be included as usual in this sector. Financial assistance to the families of the July martyrs and injured will be included in this sector. On the other hand, several projects, including the Ashrayan Prokolpo, will be excluded from this sector,” he explains.
The employee further added: “After the new inclusion and exclusion in this budget, the total allocation in this sector will decrease slightly. The upcoming budget documents will detail the specific allocations for each of the social safety net schemes.
Beneficiaries and allowance
According to sources from the Finance Division, the amount of allowances and the number of special beneficiaries in the eight ongoing programs of the social security sector are set to increase in the coming fiscal year.
The allowances for the elderly, widows, persons with disabilities, Bede (nomadic group), and other marginalized groups will be raised from a minimum of Tk50 to a maximum of Tk150 per person to enhance their living standards.
Old Age Allowance: The monthly “Old Age Allowance” for the elderly will be increased from the existing Tk600 to Tk650. In the upcoming fiscal year, the number of beneficiaries is set to increase to 61 lakh from 60.01 lakh. In FY24-25, the allocation was Tk4,350.97 crore. In the upcoming budget, it is set at 4,791 crore.
Widow’s Allowance: “Allowance for the Widow, Deserted and Destitute Women” program is the government’s second largest safety net program. From the next budget, the monthly allowance under the program will be increased from Tk550 to Tk650, while the number of new beneficiaries will be increased by 1.25 lakh, in addition to the existing 27.75 lakh, reaching a total of 2.9 million. In the current fiscal year, Tk1,844.32 crore has been allocated for the program. In FY26 the allocation will be increased by Tk434 crore, to Tk2,278 crore.
Disabled Allowance: In FY26 the government is planning to raise “Disabled Allowance” from Tk850 to Tk900. At present, 3,200,034 persons are receiving this allowance which will increase to 3,450,000 beneficiaries.
Bede Allowance (nomadic group): Currently, 10,898 individuals from the Bede (nomadic group) receive allowances. This number will increase to 11,988 in the upcoming fiscal year. Among them, 5,600 individuals presently receive a special monthly allowance of Tk500. In the next fiscal year, 6,160 individuals will receive a special allowance at an increased rate of Tk650 per month.
Hijra Allowance: The allowance for the Hijra community will be raised from Tk600 to Tk650 in FY26. The number of beneficiaries in this group will remain the same.
Marginalized Communities Allowance: The special allowance for “Marginalized Communities” is currently provided to 60,000 people at Tk500 per month. This will be extended to 66,000 people at an increased rate of Tk650 per month.
Tea Workers Allowance: “Tea Workers Allowance” budget allocation will raise from Tk36.26 crore to Tk1.08 thousand crore. At present, 60,000 tea workers each receive a one-time financial grant of Tk6,000. In the upcoming year, this will be replaced by a monthly allowance of Tk650, with the number of beneficiaries increasing to 137,000. That means in FY26 they will get a monthly Tk150 more than previous one-time grant.
Mother and Child Support Allowance: The “Mother and Child Support” program allowance will be raised from Tk800 to Tk850 in FY26. Currently this program has an allocation of Tk1662.75 crore. This will be increased to Tk1819 crore. At present, 16,55,000 beneficiaries receive this monthly allowance which will increase to 17,71,000.
Budget allocation
The allocation for the existing 140 social safety net programs was Tk136,026 crore in the current FY24-25 budget. Accounting for 17.06% of the total budget outlay. If these programs were carried forward, the total allocation in FY26 would rise to Tk144,655 crore.
In the FY24-25 budget, Tk8,828.32 crore was allocated for interest expenses on savings certificates.
But like this and the exclusion of some other program, the final allocation for this sector in the budget for the FY25-26 may decrease to Tk1,25,000 crore.
However, the report of the task force formed by the interim government to review the economic strategy has found that 21 programs under the social safety net sector are not consistent with the protection of the poor. Some of the sectors that are not consistent but are included in social security are pensions for retired government employees, subsidies in the agricultural sector, and interest payments on savings certificates.
In the current FY24-25, Tk72,695 crore has been allocated for such programs, which is 53% of the total allocation in this sector.
Regarding allocation, Khondaker Golam Moazzem, Research Director at the Centre for Policy Dialogue (CPD) said: “The various weaknesses of the social safety net program have been highlighted in the task force report. There is no need to include various inconsistent programs like pension schemes under social security.”
“Many eligible people (those in need) have not come under the scope of social security benefits, while many have received this benefit due to political considerations. It is important to bring transparency here,” he suggested.
