Budget FY26: Social safety net allowances to rise by Tk50-Tk100

Amid rising living costs and growing economic challenges, the government has proposed expanding social safety net programmes in the upcoming fiscal 2025-26, with increased allowances and a broader beneficiary base across ten key schemes.

Presenting the budget today (2 June), Finance Adviser Salehuddin Ahmed announced that monthly payments for social safety programmes will rise by Tk50-Tk100. The elderly allowance will increase from Tk600 to Tk650, while the monthly allowance for widows and abused women will grow from Tk550 to Tk650.

The monthly allowance for persons with disabilities will rise from Tk850 to Tk900. The Mother and Child Support Programme will see an increase from Tk800 to Tk850, and allowances for marginalised communities will reach Tk650.

The adviser said the budget prioritises supporting vulnerable groups and addressing poverty and inequality. The number of beneficiaries is also set to increase significantly.

The total proposed allocation for social safety net programmes in FY26 stands at Tk1.17 lakh crore. Excluding pensions, the allocation is Tk81,297 crore. Interest premiums on savings instruments have been excluded from this year's calculation.

The social safety net operates through 140 programmes under 26 ministries, with a total allocation of Tk1.36 lakh crore for FY25, representing 17.06% of the national budget.

99,000 more elderly to get benefits

According to the Finance Division's social safety net budget report, 99,000 more elderly people will receive benefits next year. 

Allowances for widows and abused women will reach an additional 1.25 lakh people, while disability allowances will cover 1.97 lakh more. Marginalised community support will extend to 94,000 new recipients.

Other increases include two lakh new beneficiaries at disability service centres, 1.16 lakh for the Mother and Child Support Programme, and two lakh for primary school stipends. 

Stipends for technical and madrasah students will cover an extra 9.9 lakh individuals. The government has also planned to include 3.37 lakh new people in the Food-Friendly Programme.

From the next fiscal year, 50,000 people will gain pension benefits. The government has projected an increase of 11.47 lakh beneficiaries under the OMS (Open Market Sales) programme.

Salehuddin Ahmed added that to ensure benefits reach the right people, the government will set up a Dynamic Social Registry (DSR).

Tk405cr for uprising victims

Meanwhile, for those injured and families of those killed in the July 2024 uprising, the budget proposes Tk405.2 crore. Around 15,000 people are expected to benefit. However, the adviser did not specify the criteria for disbursement in his budget speech.

The adviser said policies for payments to these families and injured persons would be finalised soon. 

He also noted that a new department, the "July Uprising Directorate", has been created to preserve the history of the movement and ensure proper rehabilitation. Efforts are underway to designate Ganabhaban as the "July Uprising Memorial Museum".

The government is also taking steps for medical care and rehabilitation of the injured. In the current fiscal, Tk232.6 crore has been allocated for allowances, medical care, grants and rehabilitation for these victims and their families.

Economists welcomed the increase in allowances and beneficiaries, though many said more is needed. 

Fahmida Khatun of the Centre for Policy Dialogue told The Business Standard that while the move is positive, the allowances are still too low to cope with inflation.

She also noted the government's limited capacity for such spending, given revenue constraints. 

Former BIDS Director General KAS Murshid's task force on "Re-strategising the economy and mobilising resources for equitable and sustainable development", has also recommended greater spending on social safety to bridge inequalities in health, education, and climate adaptation.

Their report said the poorest communities face the greatest risk from climate change and should get more support in the national budget.