Staff Correspondent:

The FY26 budget may allocate Tk19,707 crore for 12 social safety net programs – an increase of Tk1,750 crore from the current fiscal year In the upcoming 2025–26 national budget, an additional 624,000 beneficiaries are set to be included in the government’s social safety net programs.

At the same time, the allowance for all types of benefits will be increased by a minimum of Tk50 to a maximum of Tk100.

The proposals were approved by Finance Adviser Dr Salehuddin Ahmed at a recent meeting of the advisory council committee on social safety net programs, according to sources in the Ministry of Finance.

Sources indicate that the total allocation for 12 types of social safety net programs in the upcoming budget will be Tk19,707 crore.

In the current 2024–25 fiscal year, the allocation was Tk17,957 crore, meaning an increase of Tk1,750 crore in the new fiscal year.

The 624,000 new beneficiaries will be brought under various allowance schemes in the upcoming budget. But this number is lower compared to the current fiscal year, when 1,026,000 new beneficiaries were included.

Therefore, the number of new beneficiaries under the government’s social safety net coverage will decrease compared to the current fiscal year.

As per the Finance Division’s estimates, by adding 99,000 new recipients in 2025–26, a total of 6.1 million elderly people will receive the old-age allowance.

The amount of this allowance has been increased by Tk50, from Tk600 to Tk650.

A total of Tk4,791.31 crore will be allocated for this program, up from Tk4,350.97 crore in the current budget.

Meanwhile, an additional 125,000 people will be included in the widow allowance category, according to sources.

The total number of beneficiaries under this program will rise from 2.775 million to 2.9 million.

The allocation for this sector will be Tk2,277.83 crore, compared to Tk1,844.32 crore in the current budget.

The allowance amount is being increased by Tk100 to Tk650.

The disability allowance program is also being expanded – the number of beneficiaries will increase from 3.234 million to 3.45 million.

The allowance will be raised by Tk50 to Tk900.

A total of Tk3,752 crore will be allocated for this activity, compared to Tk3,321.77 crore in the current fiscal year.

Under the Mother and Child Benefit Program, poor mothers are provided with stipends.

Sources say that in the upcoming fiscal year, 115,920 new people will be added to this program, raising the total number of beneficiaries to 1,771,200.

Their monthly allowance will be increased by Tk 50 to Tk850.

According to a study by the Centre for Policy Dialogue (CPD), despite being eligible, 3.3 million elderly and 2.5 million widows in the country do not receive any allowances.

On the other hand, around 30% of elderly recipients and 33% of widows continue to receive benefits despite being ineligible, it says.

This misallocation results in an annual waste of approximately Tk1,500 crore – an amount that could otherwise bring an additional 1.5 million elderly and widows under coverage, the CPD study adds.

Per the Bangladesh Bureau of Statistics, about 18.7% of the country’s 169.8 million population – or roughly 31.7 million people – live below the poverty line.

It says there is also a significant disparity between urban and rural participation in the safety net programs.

Only 50% of the urban poor are covered under these programs, while in rural areas, the rate is 150%.

In the 2023–24 fiscal year, the total budget for social protection was Tk126,272 crore.

Of this, Tk43,389 crore was allocated for direct cash allowances to 13.864 million people, including the elderly, widows, pensioners, freedom fighters, the Hijra community, and the Bede community.

Among this, Tk27,413.78 crore was allocated for pensions of 800,000 non-cadre government employees, who make up only 5.77% of beneficiaries but receive 63.18% of total allocations under this sector.

Additionally, Tk5,176.71 crore was allocated as allowances for 219,000 freedom fighters.

This group constitutes just 1.58% of cash beneficiaries but received 11.93% of the allocated funds.

Selection of beneficiaries for programs such as old-age allowance, widow allowance, maternal and child support, and assistance to the disabled, Hijra, and Bede communities is typically carried out by union parishad chairmen, members, municipal mayors, and ward councillors.

The total number of beneficiaries under all these programs stands at 12.445 million.

When asked for comment, Finance Adviser Dr Salehuddin said the number of beneficiaries under the social safety net programs and the allowance amounts are both being increased in the upcoming budget.

“There is no rule that the number of beneficiaries must increase at the same rate every year,” he said. “What matters is whether the selected beneficiary is genuinely eligible to receive the benefit.”