Social security coverage, allowances to increase in FY26: Finance adviser

Finance Adviser Salehuddin Ahmed today (19 March) said an equality-based, welfare-oriented budget will be prepared for the next fiscal year, which will increase the coverage of social security programmes and allowances.

"The Annual Development Programme will avoid unreasonable and large projects," he said while exchanging views with editors and senior journalists of print and electronic media on policy issues for formulating the upcoming budget at the ministry.

"The budget will be designed in such a way that the next political government cannot ignore it," he added.

The finance adviser said priority will be given to the working group in project selection for the fiscal 2025-26 national budget.

He said building an equality-based, welfare-oriented state cannot be achieved in the short term of the current government. However, some economic reforms will be introduced during this period, with efforts to implement them in the budget.

Salehuddin said the budget will lay the foundation for these reforms in the short term. "Initiatives for the medium and long term are beyond our mandate and will be handled by the elected political government," he added.

He said immediate steps will be taken in the budget to leave a lasting impact, such as increasing the coverage of social security and allowances. Extra attention will be given to the education, health, and technology sectors, alongside initiatives to expand trade and commerce.

The finance adviser said reforms will be introduced to the National Board of Revenue to boost revenue. A cashless society will be established, and a system will be created where taxpayers won't need to meet tax officers.

Additionally, the contribution of housewives' work will be included in the GDP, he added.

Finance Secretary Md Khairuzzaman Mozumder said controlling inflation will be a priority in the next budget. Inflation has already decreased somewhat due to contractionary monetary policies and government spending cuts.

"The government expects point-to-point inflation to fall to 8% by the end of June," he hoped.
Shamsul Huq Zahid, editor of The Financial Express, emphasised how much of the interim government's budget will be inherited by the political government if elections are held before June next year.

Shawkat Hossain Masum, Head of Online at the daily Prothom Alo, proposed including the annual employment figures in the budget and urged presenting a specific action plan for creating new jobs.

He also suggested shortening the budget speech to focus on essential information.

In response, the financial adviser said the next budget speech will be much shorter, reducing from 200-300 pages to 50-60 pages.

Zakir Hossain, associate editor at the daily Samakal, suggested increasing the monthly allowance of Tk500 to Tk700 provided under social security programmes to better meet individuals' basic needs.

He also proposed reducing customs duty, value-added tax, and other taxes on newsprint imports to support the newspaper industry.