The interim government led by Dr Muhammad Yunus plans to provide social safety net assistance to more than 157.1 million people in the country, which is nearly the entire population.
To initiate this plan, the government has allocated Tk1,16,731 crore for social security programmes in FY 2025-26, which is about 14.78% of the total budget and 1.87% of the country’s Gross Domestic Product (GDP).
The largest portion—about 41%—of the social security budget is allocated to social assistance, reflecting the government's focus on reducing inequalities and supporting vulnerable communities.
Finance Adviser Dr Salehuddin Ahmed announced the Tk7,89,999 crore proposed budget for the financial year 2025-26 on Monday.
However, this year’s allocation for social security is less than in the outgoing fiscal year. In FY 2024-25, a total of Tk1,36,026 crore was allocated for this purpose.
Last year, there were 140 programs under the social safety net budget, but this time the total number has been reduced to 97.
In the proposed budget, the highest allocation—Tk35,282 crore—has been granted for pension management, covering 850,000 beneficiaries.
The number of beneficiaries has increased in several programs, including old age allowance, allowance for widows and deserted women, disability allowance and education stipend program, livelihood program for underprivileged people, service and support centres for persons with disabilities, mother and child benefit program, free textbook distribution among students, harmonized stipend program to improve access and retention, stipends under the Technical and Madrasa Education Division, relief and rehabilitation program, OMS, FFP, pension management, agriculture subsidy management, assistance for agricultural rehabilitation, and the VGF program of the Ministry of Fisheries and Livestock.
On the other hand, the number of beneficiaries has decreased in several schemes, including the Employment Generation Program for the Poorest Plus (EGPP+), rural infrastructure development, the VGF program, and general relief operations under the Ministry of Disaster Management and Relief.
Most significantly, the number of beneficiaries increased tenfold—from 1 lakh to 10.32 lakh—in the relief and rehabilitation program of the Ministry of Disaster Management and Relief.
Allowances increased
The proposed budget increases monthly allowances by Tk50 to Tk100 in three programs: old age allowance, allowance for widows and husband-deserted destitute women, and the mother and child benefit program.
Earlier, the monthly allowance for widows and husband-deserted destitute women was Tk550; it has now been raised to Tk650.
The mother and child benefit allowance and the old age allowance have also been increased by Tk50. Previously, they were Tk800 and Tk600, respectively.
This year, the budget for the Open Market Sale (OMS) program has significantly increased—from Tk2,004.22 crore to Tk3,433.08 crore.
Funds have also been increased for the Food Friendly Program, which provides 30 kg of rice per family at a nominal cost of Tk15 per kg to extremely poor rural households.
The budget allocation for this program in FY 2025-26 has risen significantly from Tk3,257.98 crore to Tk4,531.90 crore.
According to the budget documents, the interim government has taken steps to rationalize the number of programs and allocation of resources.
To that end, the government has revised several policies and manuals for social protection programs to improve targeting and implementation.
This time, the government has labelled 39 schemes as pro-poor programs, under which more than 76 million beneficiaries will receive assistance.
In addition, for the first time, two separate programs—disability allowance and the education stipend program—have been merged.
