Allowances, however, to increase by only Tk 50 to Tk 100

The government will increase the number of beneficiaries of various social safety net schemes by at least 10 lakh from fiscal year (FY) 2025-2026, but allowances will see a small increase, although poor groups have been facing stubbornly high inflation for years.

The finance ministry, after consultation with relevant ministries, has drafted a plan to increase the number of beneficiaries and the monthly allowance.

The plan will be finalised at a budget-related government meeting next month, a senior finance ministry official said.

From the next fiscal year, the monthly allowance will increase by only Tk 50 to Tk 100.

However, economists, during a pre-budget meeting with Finance Adviser Salehuddin Ahmed, suggested increasing the monthly allowance of different social safety programmes.

A recommendation from the meeting was to provide at least Tk 3,000 a month to each beneficiary under the schemes. The current allowances range from Tk 600 to Tk 800 per month.

Later, the finance adviser told reporters that they would increase the allowance to some extent, but considering the government’s limited resources.

Finance ministry officials said revenue earnings of the government remained low, while it had to spend a large amount on interest payments, subsidies, and salaries and allowances. As a result, it is difficult to increase the allowances under the safety net schemes significantly.

Prof Mustafizur Rahman, a distinguished fellow of the Centre for Policy Dialogue (CPD), said the increase was a positive step, but still insufficient.

He said in recent years, as people struggled due to rising commodity prices, the number of those entitled to such support had grown, while their need for cash aid had also increased.

He added the budget’s limitations were understandable but stressed the need for a mid-term plan on how to achieve a transition from social safety to social security.

“The main focus should be on how the number of people in need can be reduced by creating employment opportunities through increasing investment,” Prof Rahman further said.

He emphasised that these aspects must be prioritised in the upcoming budget.

From the next budget for FY26, a “Dynamic Social Registry” system, financed by the World Bank, will be introduced to minimise safety net leakage and corruption.

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