5 lakh more recipients, increased allowances for FY26 social safety

Inforgraph: TBS

Summary:

• Government increases social safety net allowances, adding Tk1,400 crore to the budget
• Over 5 lakh new beneficiaries added across seven key social welfare schemes
• Elderly, widows, disabled, hijras, and tea workers receive increased monthly allowances
• Beneficiary verification to remove ineligible recipients and ensure fairer allocation
• Allowances to be disbursed before Eid for timely festive season relief

In a bid to provide greater financial relief to vulnerable communities, the government has decided to increase the allowances for all beneficiaries of ongoing social safety net programmes in the upcoming fiscal 2025-26, requiring an additional Tk1,400 crore in the next budget.

Under the Ministry of Social Welfare, the monthly allowances will be raised by Tk50 to Tk150, depending on the specific programme. Additionally, more than 5 lakh new beneficiaries will be added across seven key schemes, ministry officials said.

This initiative aims to support economically vulnerable groups, including the poor, the disabled, and marginalised communities, in light of the rising cost of living, according to ministry officials.

Among the changes, the elderly allowance will rise by Tk50 to Tk650, while the allowance for widows and deserted women will increase by Tk100, bringing it to Tk650.

Disability benefits will see a Tk50 boost, raising the allowance to Tk900. Furthermore, efforts are being made to increase allowances for hijras, bede (river nomads), indigenous communities, and tea workers.

The Ministry of Social Welfare has taken the initiative to distribute social security allowances to beneficiaries before Eid, a month earlier than usual. Typically, allowances are disbursed in the first week of the following month, but this year, the ministry aims to ensure all beneficiaries receive their payments by 29 March

Md Mohiuddin, secretary of the Ministry of Social Welfare, said the interim government wants to build a society free from discrimination, and to achieve this, the government is working to provide necessary support wherever it is needed.

"With the goal of achieving social equality, the ministry has decided to increase both the number of beneficiaries and the allowances under the social safety net programmes," he told The Business Standard.

The government increased allowances in previous years, with the elderly allowance rising by Tk100 in FY24, and allowances for widows and deserted women seeing a Tk50 increase. The last adjustment for disability allowances occurred in FY23, when the amount was raised from Tk750 to Tk850.

Other decisions for safety net

According to ministry sources, the number of students with disabilities receiving education stipends will decrease by 19,000 in FY26. Currently, 100,000 students with disabilities benefit from these stipends. Upon review, it was found that 19,000 of these students also receive general education stipends.

As a result, these students will be removed from the disability education stipend list. In the next fiscal year, the Ministry of Social Welfare will provide stipends to 81,000 disabled students.

Meanwhile, the number of beneficiaries receiving education stipends for children from the bede community will increase. Currently, 4,398 children from the bede community receive education stipends, and this number will rise to 4,838 in the upcoming fiscal year.

The number of beneficiaries from disadvantaged communities will also increase, from 28,912 to 31,902.

Additionally, children of tea workers will now be included in the education stipend programme. The budget proposal includes the inclusion of 5,000 tea worker children, with a proposed allocation of Tk1.7 crore.

Furthermore, tea workers will transition from receiving a one-time annual stipend of Tk6,000 to a monthly stipend of Tk650 starting in the next fiscal year, according to ministry sources. The upcoming budget also includes provisions for special training programmes for tea workers.

In the current fiscal, Tk9,623 crore is allocated for the seven safety net schemes. With the added beneficiaries and increased allowances, the allocation next fiscal will rise to Tk11,025 crore.

Still not sufficient

Economists have long argued that the government's allocation for social safety net programmes is insufficient. They also point out that the government often inflates the figures by including pensions and interest from savings bonds, which do not directly contribute to social security.

They believe there is a pressing need to expand these programmes. Due to inflation, natural disasters, and other factors, vulnerable and marginalised communities continue to face new challenges.

Data from the Trading Corporation of Bangladesh (TCB) shows that prices for essentials like coarse rice (Tk50–55 per kg), eggs (Tk10 each), milk (Tk100 per litre), and clothing have risen.

Consequently, economists argue that a monthly allowance of Tk650 remains inadequate for elderly or widow beneficiaries.

Fahmida Khatun, Executive Director of the Centre for Policy Dialogue, acknowledged the increase in beneficiaries and allowances but stated, "Given inflation, the allowance remains too low. A minimum increase of Tk100 would have been more beneficial."

She also noted that limited government revenue hampers its ability to fund these expenses.

Beneficiary verification soon

There are allegations that, during the previous government, many ineligible individuals were added to the social safety net list based on political considerations, while some whose circumstances improved were not removed.

As a result, a thorough review will be conducted to remove ineligible beneficiaries and include those who truly qualify, according to Secretary Md Mohiuddin.

He said the verification process has already begun, with relevant departments indicating it will take at least 96 days to update the list.

"Strong action will be taken immediately after Eid," he added.

Meanwhile, in a meeting with economists last week, Finance Adviser Salehuddin Ahmed announced that around 20 lakh beneficiaries in the social safety net programmes are currently receiving benefits unjustly.

"These individuals will be removed, and eligible candidates will be added to the list," he said.

Allowances before Eid

The Ministry of Social Welfare has taken the initiative to distribute social security allowances to beneficiaries before Eid, a month earlier than usual. Typically, allowances are disbursed in the first week of the following month, but this year, the ministry aims to ensure all beneficiaries receive their payments by 29 March.

The ministry currently provides allowances to 1.11 crore individuals under various programmes. So far, allowances amounting to Tk1,856 crore have been distributed to 9,315,137 beneficiaries.

Secretary Md Mohiuddin said the remaining payments will be made before Eid. "While the amounts may seem modest, the ministry believes this early disbursement will provide much-needed relief to low-income individuals during the festive season."

The social safety net programme began in FY99 with the elderly allowance, initially providing Tk100 per month to 31,000 individuals. Over the years, the programme expanded to include allowances for widows, deserted women, and people with disabilities, with initiatives for marginalised groups such as hijras and tea workers introduced in later years.

Various ministries, including the Ministry of Women and Children's Affairs, the Ministry of Liberation War Affairs, and the Ministry of Education, implement different aspects of the social security programmes. The Ministry of Social Welfare is responsible for the majority of these efforts, reaching 1.11 crore beneficiaries.

In the upcoming fiscal year, changes in these programmes are expected, as indicated by the finance division. For the current fiscal year, 17% of the national budget has been allocated to social security.