Social safety net allocation and beneficiary coverage to expand in FY 2025-26 to improve living standards and reduce inequality

The interim government has proposed an increase in both the number of beneficiaries and per capita allocations for various social safety net programs in the upcoming 2025-26 national budget. This move is aimed at reducing poverty, addressing social inequality, and improving the quality of life for poor, marginalized, and vulnerable populations.

During the budget presentation on Monday afternoon, Economic Adviser Dr. Salehuddin Ahmed announced the government's intention to raise the amount allocated for old age and widow allowances starting from the next fiscal year. He stated that the proposed changes are part of a broader strategy to strengthen social protection in the face of inflationary pressures affecting low-income households.

To safeguard these communities from rising living costs, the government is continuing its initiative to distribute essential commodities—such as lentils and soybean oil—to 5.7 million families through the Trading Corporation of Bangladesh (TCB) using smart family cards. This support program, which is already in effect, is intended to provide relief for those most impacted by economic challenges.

Additionally, Dr. Ahmed proposed the extension of the Food-Friendly Program from its current duration to six months in the next fiscal year. He also recommended including an additional 500,000 families under this program, increasing its reach from 5 million to 5.5 million families. These steps aim to ensure a more inclusive distribution of food aid among those in need.

In light of the growing scope and importance of social protection, the government has proposed a total allocation of BDT 1,16,731 crore for the social safety net sector in the fiscal year 2025-26. Excluding pension-related expenditures, the allocation specifically for the social protection network is set to be BDT 91,297 crore.

This proposed budget highlights the government's commitment to expanding support systems that directly impact the country's most at-risk populations. By increasing coverage and benefit rates, the budget seeks to mitigate economic disparities and enhance resilience among disadvantaged groups.