From now on, allowances under social safety net to rise yearly
Govt forms inter-ministerial committee to conduct periodic reviews of six major programmes
From now on, allowances under key social safety net programmes in Bangladesh will be reviewed and increased at least once a year, according to sources at the Ministry of Finance.
The government has decided to adjust allowance rates for major programmes, including the old-age allowance, widow and destitute women's allowance, disability allowance, education stipends, livelihood for disadvantaged communities, maternal and child benefit programmes, and employment generation for the poorest.
The adjustments will be made in line with inflation, the sources added.
Keep updated, follow The Business Standard's Google news channel
To implement this, an inter-ministerial committee has been formed under the finance ministry to conduct periodic reviews of six major social safety programmes. The nine-member committee was officially constituted on 30 September.
It will assist the Cabinet Committee or the Advisory Council on Social Safety Nets in deciding whether to increase, decrease, or maintain the current allowance rates. The committee will use the Consumer Price Index (CPI) as the benchmark economic indicator and will review allowance rates at least once a year.
A senior Finance Ministry official, requesting anonymity, told The Business Standard that the government aims to extend social safety coverage to all low-income and poor households while aligning benefits with the rising cost of living. "In particular, the government wants to adjust the allowance amounts in line with the prices of essentials like food, medicine, and clothing," the official added.
Currently, 27 ministries implement 140 programmes under the social safety net framework, with the Ministry of Social Welfare overseeing most of the major schemes. In the FY2025-26 budget, the government has allocated Tk1,16,731 crore for these programmes.
