Tk100cr fund for youth self-employment on the cards

The finance ministry is set to establish a special fund of approximately Tk100 crore in the budget for the upcoming fiscal year 2025-26 to foster self-employment among young people. 

During a meeting held on Saturday with the Finance Division, Chief Adviser Professor Muhammad Yunus instructed the formation of a fund specifically aimed at assisting unemployed youth and young individuals in creating their own livelihoods. 

The head of the interim government also provided a series of guidelines on crucial sectors, including improving the investment climate, controlling inflation, strengthening the education and healthcare sectors, and protecting women's rights.

In response to this, the Finance Division has decided to allocate funds in the next fiscal budget to finance the self-employment initiatives of young people. Financial assistance from this fund will be exclusively available to unemployed youth and young individuals keen on pursuing self-employment.

Speaking to TBS on condition of anonymity, a senior official from the Finance Division said the chief adviser desires the younger generation to take out loans and become entrepreneurs. He noted that across districts, upazilas, and rural areas, many young men and women are unable to pursue their aspirations due to a lack of funds and are also struggling to find employment. 

Prof Yunus directed that the budget include provisions to ensure these young individuals can easily access the fund. He emphasised that while the amount of assistance provided to them might be small, the policies should ensure easy access.

The official further said an initial allocation of Tk100 crore will be made in accordance with the government's directives. Subsequently, detailed policies will be formulated regarding who will receive capital from this fund, for what purposes, the duration of the loans, and the applicable interest rates. This initiative aims to facilitate self-employment opportunities for educated youth through small-scale funding.

Beyond this, the chief adviser urged initiatives to improve the living standards of the country's people overall, including those living in poverty. His recommendations encompass measures to increase people's income, create decent employment, improve healthcare services, and implement environmental development taxes. The budget will also include guidelines on these aspects.

Ensuring a safe environment for children 

Furthermore, Prof Yunus stressed the importance of ensuring a safe environment for children to grow up in and to prepare them for the future world. He advocated for prioritising education, health, and sports to enhance children's lives. 

The Finance Division official indicated that government schools will undertake certain programmes in this regard, for which allocations will be made. However, there will not be a separate budget line for this, with the primary and mass education ministry and the education ministry taking the lead on these programmes.

Finance Adviser Salehuddin Ahmed is scheduled to present the budget for the fiscal year 2025-26 on 2 June. As the national parliament is not currently in session, the budget will be presented on the state-run Bangladesh Television.

The Finance Division has set a total expenditure target of Tk7.9 lakh crore for the next fiscal year. Of this, Tk2.3 lakh crore is earmarked for development expenditure, with the remaining Tk5.6 lakh crore allocated for non-development expenditure.