TDS Desk:

In the upcoming 2025-26 fiscal year, the allowance amounts under eight ongoing programmes within the social safety net sector will be increased. The allowances for the elderly, widows, persons with disabilities, Bede (nomad group) and other marginalised groups will be raised by Tk 50 to 150 in order to improve their living standard.

According to decisions made in a recent meeting of the Advisory Council Committee on social safety net programmes held at the secretariat preparations are being undertaken to reorganise the social safety sector for the next fiscal year. The meeting was chaired by Salehuddin Ahmed, economic adviser and chair of the committee.

As part of initiatives aimed at improving the living standards of tea workers, a new decision has been taken to provide monthly stipends for their children. Most of the allowance distribution will be implemented under the ministry of social welfare.

However, the overall budget allocation for this sector is set to decrease. While the current fiscal year’s allocation for the social safety net sector stands at Tk 1360.26 billion, the ministry of finance plans to reduce this to Tk 1200 billion in the upcoming fiscal year.

Sources say that although the total allocation is being reduced, the reason for the increase in allowances is that some unnecessary programmes are being excluded this time. Senior officials at the finance division have stated that the then Awami League government had been inflating the allocation for the social safety net sector in each fiscal year in order to make it appear higher in comparison to the Gross Domestic Product (GDP).

Pensions of retired government employees and interest payments on savings certificates were included as expenditures under the social safety net.

Finance division officials had previously said that when individuals opt to invest in savings certificates rather than keeping money in bank deposits, the higher interest must be borne by the government.

Hence, this was also counted as part of the social safety net. However, sources confirmed that while pensions will continue to be listed under this sector in the next fiscal year, the interest differential on savings certificates will be excluded.

Both the finance adviser and the finance secretary are currently in the United States attending the spring meetings of the International Monetary Fund and the World Bank.

However, speaking to the press following the recent meeting of the Executive Committee of the National Economic Council (ECNEC), planning adviser Wahiduddin Mahmud remarked that nearly 50 per cent of social allowance recipients are not genuinely eligible.

Political influence often results in such individuals being included in the beneficiary list. He further stated that if such individuals were removed, the allowances for actual beneficiaries could be doubled.

According to the finance division, as in the current fiscal year, valiant freedom fighters will continue to receive a monthly honourarium of Tk 20,000 in the next fiscal year. In addition, 60,000 individuals suffering from cancer, kidney disease, liver cirrhosis and similar ailments will continue to receive a one-time grant Tk 50,000 each.

The interim government has also decided that all beneficiaries under the social safety net programme must possess a National Identity Card (NID). From 30 April onwards, no allowance will be disbursed without an NID. For beneficiaries under the age of 18, a birth registration certificate will be required instead of NID. However, in such cases, the legal guardian must still have a valid NID.

ALLOWANCE AMOUNT OF ELDERLY, WIDOW AND DISABLED PEOPLE

In the current fiscal year, a total of 60,000 individuals are receiving the old-age allowance. For this purpose, a budget allocation of Tk 43.51 billion has been made. In the upcoming fiscal year, the number of beneficiaries is set to increase to 6.1 million, with the allocation rising by Tk 4.40 billion to 47.91 billion. The monthly allowance for the elderly will be increased from the existing Tk 600 to 650.

Under the social welfare ministry, the formal title of the widow’s allowance is Allowance for Widows and Women Abandoned by Their Husbands. Currently, 27,75,000 individuals receive this allowance. The number of beneficiaries will be increased by 1,25,000, reaching a total of 2.9 million. The monthly allowance amount will be raised from Tk 550 to 650. Consequently, the allocation will be increased by Tk 4.34 billion, from Tk 18.44 billionto 22.78 billion.

At present, 32,00034 persons with disabilities receive a monthly allowance of Tk 850 each. This number will increase to 34,50,000 beneficiaries. The monthly allowance will also be raised to Tk 900.

In addition, educational stipends are provided to students with disabilities of Tk 900 at the primary level, Tk 950 at the secondary level, Tk 1,050 at the higher secondary level and Tk 1,300 at the tertiary level.

However, the total number of stipend recipients is being reduced from 100,000 to 81,000. Except for the highest tier, the number of beneficiaries in the remaining three tiers is being reduced from 100,000 to 81,000. The allowance rate will remain the same as before.

Allowances for Bede (nomad group) and underprivileged communities

Currently, 10,898 individuals from the Bede (nomad group) receive allowances. This number will increase to 11,988 in the upcoming fiscal year. Among them, 5,600 individuals presently receive a special monthly allowance of Tk 500. In the next fiscal year, 6,160 individuals will receive a special allowance at an increased rate of Tk Tk 650 per month.

Children of Bede (nomad group) community receive monthly educational stipends ranging from Tk 700 to 1200 at the primary, secondary, higher secondary and tertiary levels.

These rates will remain unchanged, however, the number of stipend recipients will be increased from 4,398 to 4,838.

Meanwhile, the allowance for the Hijra community will be raised from Tk 600 to 650. The number of beneficiaries in this group will remain the same.

For the improvement of living standards among marginalised communities, the budget allocation is being increased from Tk 680 million in the current fiscal year to 860 million.

The number of beneficiaries will be raised from 90,832 to approximately 100,000. These communities receive special allowances, educational stipends and monthly grants. The special allowance, currently provided to 60,000 people at Tk 500 per month, will be extended to 66,000 people at an increased rate of Tk 650 per month in the next fiscal year.

Although the number of educational stipend recipients will see a slight increase, the stipend rates will remain unchanged of Tk 700 to 1200 per month across primary, secondary, higher secondary and tertiary levels.

For the welfare of tea plantation workers, the current fiscal year’s allocation stands at Tk 362.6 million. This will be nearly tripled in the upcoming fiscal year to Tk 10.8 million.

At present, 60,000 tea workers each receive a one-time financial grant of Tk 6,000. In the upcoming year, this will be replaced by a monthly allowance of Tk 650, with the number of beneficiaries increasing to 1,37,000. Their children will also receive monthly educational stipends ranging from Tk 700 to 1,200, along with new training-related assistance. This will be considered a new initiative.

The Mother and Child Support programme currently has an allocation of Tk 16.00 billion. This will be increased to Tk 18.19 billion in the upcoming fiscal year.

At present, 16,55,000 individuals receive a monthly allowance of Tk 800 under this programme. The amount will be raised to Tk 850, and the number of beneficiaries will increase to 17,71,000.

When asked about the government’s initiatives centred on the social safety net sector, Selim Raihan, executive director of the South Asian Network on Economic Modelling (SANEM) told Prothom Alo that the budgetary allocation for the social safety sector is insufficient given the actual need.

He added that, in most cases, the current allowances are minimal and inadequate to support recipients amidst high inflation. He emphasised the need to restructure the sector to ensure that genuine beneficiaries receive the support they require.

Source: Prothom Alo