Govt approves hike in social safety net benefits for FY27
Such announcement before national election surprises economists
The government has approved an increase in allowances and an expansion of beneficiaries under 15 social safety net programmes for the 2026-27 fiscal year, with the revised benefits set to take effect from July.
The decision was made at a meeting of the Advisory Council Committee on Social Safety Net Programmes, chaired by Finance Adviser Salehuddin Ahmed, according to a press release issued by the finance ministry today (25 January).
Under the new measures, monthly allowances for elderly persons aged over 90, widows and women subjected to spousal abuse will be raised to Tk1,000, while the general rate for elderly and widow beneficiaries will increase from Tk650 to Tk700 per month.
The number of beneficiaries under the old-age allowance programme will be increased by 1 lakh to 62 lakh. Of them, 59.95 lakh elderly persons will receive Tk700 per month, while 2.05 lakh individuals aged over 90 will receive Tk1,000 per month.
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Among 29 lakh widows and destitute women, 28.75 lakh will receive Tk700 per month instead of Tk650, and 25,000 women aged over 90 will receive Tk1,000 per month.
Under the disability allowance and stipend programmes, 36 lakh persons with disabilities will be covered. Of them, 35,81,900 will receive Tk900 per month and 18,100 will receive Tk1,000 per month. In the current 2025-26 fiscal year, 34.5 lakh persons are receiving disability allowances.
Monthly stipends for students with disabilities have also been increased by Tk50, bringing the rates to Tk950 at the primary level, Tk1,000 at the secondary level, Tk1,100 at the higher secondary level and Tk1,350 at the tertiary level.
Beneficiaries under the programme for improving the living standards of marginalised communities will increase by 7,000, with the monthly allowance raised to Tk700 from Tk650. The number of marginalised students receiving stipends will rise by 3,198 to 45,338, with revised monthly rates set at Tk700 (primary), Tk800 (secondary), Tk1,000 (higher secondary) and Tk1,200 (tertiary). Additionally, 5,490 individuals from marginalised groups will receive skills development training.
The number of beneficiaries receiving financial assistance for patients suffering from cancer, kidney disease, liver cirrhosis, stroke-related paralysis, congenital heart disease and thalassaemia will increase by 5,000 to 65,000. The one-off medical assistance has been doubled to Tk1 lakh.
Under the women and children affairs ministry, beneficiaries of the Mother and Child Benefit Programme will increase by 1.24 lakh to 18,95,200, with eligible mothers continuing to receive Tk850 per month.
The number of beneficiary families under the food-friendly programme will rise by 5 lakh to 60 lakh. Each family receives 30 kilograms of rice per month at Tk15 per kilogram for six months.
Monthly allowances for decorated freedom fighters and families of martyred freedom fighters will be increased by Tk5,000.
The committee also recommended bringing an additional 2,73,514 fishermen under the VGF programme, raising total coverage to 15 lakh fishermen.
In addition, it recommended including monthly honorarium allowances for families of those martyred and injured in the July mass uprising under the liberation war affairs ministry, as well as the VGF activities under the fisheries and livestock ministry, within the formal scope of the social safety net advisory committee.
Strategic timing raises eyebrows
The announcement has surprised economists, as the national budget for the next fiscal year is typically unveiled in June and implemented by the government formed after the February elections.
Fahmida Khatun, executive director of the Centre for Policy Dialogue, expressed her astonishment at the decision to announce these figures so far in advance. "While work on the next budget has begun, they could have left a guideline for the next government. Announcing specific hikes now is surprising," she told The Business Standard.
The CPD executive director further noted that since an elected government will soon take office, they should have the fiscal space to determine benefits based on their own manifesto. "The current Advisory Council is creating invisible pressure on the incoming government by making these decisions public now," she added.
