Support for the Poor: What the New Budget Promises
Muhammad Raihan Uddin
The upcoming national budget for Fiscal Year 2025–26 marks a significant step forward in the government’s effort to improve the country’s social safety net programmes (SSNPs). Faced with rising inflation, increasing vulnerability, and demands for greater accountability, the government has responded with a revised framework that aims to better serve the most vulnerable members of society.
This time, the focus is not just on expanding the size of the budget, but on making the system more efficient, transparent, and better targeted. The government plans to reduce the number of schemes from 140 to fewer than 100, dropping one-third of existing programmes and grouping 38 of them under a new “pro-poor” section, which will focus on the most vulnerable communities. This reform comes in response to long-standing calls from economists, development partners, and civil society for streamlining fragmented programmes and removing non-welfare items from the SSNP budget.
The allocation for social safety net schemes in the FY 2025–26 budget is expected to be Tk 116,731 crore, or 14.78% of the total budget and 1.87% of the total GDP. Importantly, the government is also increasing the number of SSNP beneficiaries by around 10 lakh people and raising the monthly allowance amounts by Tk 50 to Tk 100 across core programmes. While the allowance increases are modest, they come at a time when fiscal pressure is high due to low revenue collection and growing expenditure obligations, including interest payments, subsidies, and civil service salaries. Given this context, the government’s attempt to expand coverage and enhance support shows a commitment to keeping the most vulnerable at the center of policy priorities.
Among the 38 pro-poor programmes, some key schemes stand out. The Old Age Allowance, which has been supporting elderly citizens since FY 1997–98, will now provide Tk 650 per month, up from Tk 600, and include an additional one lakh beneficiaries, taking the total to over 61 lakh people. Similarly, the Allowance for Widowed, Deserted and Destitute Women will increase its monthly support from Tk 550 to Tk 650, with 1.25 lakh new beneficiaries being added to the existing 27.75 lakh.
For persons with disabilities, the Allowance for the Physically Challenged will rise from Tk 850 to Tk 900, with 2 lakh more people added to the list. Meanwhile, under the Mother and Child Benefit Programme, monthly support will increase from Tk 800 to Tk 850, covering 17.71 lakh beneficiaries, up from 16.50 lakh.
The government has also planned an expansion of in-kind food support through the Food Friendly Programme, under which 55 lakh families will receive 10 lakh tonnes of rice at subsidized prices for six months, instead of the previous five-month window. For those engaged in manual work, the Employment Generation Programme for the Poorest will now offer a daily wage of Tk 250, up from Tk 200, for up to 40 days per year, and extend coverage to 6 lakh individuals, compared to the previous 5.18 lakh.
These measures show that the government is changing its approach. Instead of running too many scattered programmes, it now wants to focus on fewer, more organized ones that are based on data and aim to help the poor more fairly. The grouping of key schemes under the “pro-poor” label also allows the government to monitor progress, evaluate outcomes, and align long-term poverty reduction goals more effectively.
However, some challenges still persist. For many experts, the main concern lies in the adequacy of the benefits. While the number of people covered has increased, and while even small raises in monthly allowances are appreciated, the amounts are still far too low to meet the basic needs of poor households. For instance, Tk 650 or Tk 850 a month offers little relief in a context where prices of rice, oil, medicine, and utilities have risen sharply in recent years.
Economists and civil society voices have long recommended that each beneficiary should receive at least Tk 3,000 per month, especially in light of the high cost of living and the economic shocks that have affected informal workers, women, elderly people, and persons with disabilities. While the government’s limited fiscal space is real, the question remains: how meaningful can social protection be if the support it offers cannot sustain even a basic living?
Another persistent issue is the accuracy of targeting. According to recent data, only 44% of social protection benefits reach the poorest 40% of households, a decline from 51% in 2016. This shows that exclusion and inclusion errors are still significant. Many genuinely poor people are left out, while some non-poor manage to stay on beneficiary lists due to political influence or weak monitoring.
To address this, the government is set to introduce a Dynamic Social Registry (DSR) system in the next fiscal year, supported by the World Bank. This digital platform will update household data continuously and help quickly identify new vulnerable households in times of economic or climate shock. If linked effectively with the National ID system, this registry could become a game-changer for reducing errors, leakages, and misuse in SSNPs.
However, for the DSR to succeed, ministries must cooperate, local governments must be involved, and digital access must be ensured even in remote or marginalized communities. Moreover, digital literacy and grievance redress systems need to be strengthened so that all eligible citizens can access services and report irregularities.
Furthermore, in urban areas, social safety net programmes do not reach many poor and vulnerable people who need support. While some low-income families in cities do receive allowances, many others remain excluded due to weak targeting, limited outreach, and the rural bias in programme design. As rapid urbanization continues, poverty in cities is becoming more visible, particularly among informal workers, slum dwellers, and climate migrants. To address this growing gap, the government should introduce dedicated urban social protection schemes that reflect the specific challenges of city life, such as job insecurity, high living costs, and overcrowded housing.
Lastly, Bangladesh has already introduced several programmes that address climate-induced vulnerabilities, such as the Fund for Climate Change, Coastal Climate Resilient Infrastructure Improvement, Gucchagram for climate victims, and various development initiatives in Haor and Char areas. While these efforts are commendable, there is a pressing need to move toward a more integrated and strategic approach. The government should develop a dedicated climate-responsive social protection strategy that brings together these scattered initiatives under a unified framework. This strategy should include timely cash assistance, employment opportunities, and livelihood restoration for those affected by climate shocks. Special focus should be given to urban climate resilience, which remains largely overlooked, despite rising risks in cities. Better coordination across ministries and alignment with climate adaptation goals will ensure that social safety nets not only protect lives in times of crisis but also help build long-term resilience among vulnerable communities.
The government deserves applause for its efforts to reform the SSNP system. The steps being taken, from reducing scheme count to prioritizing pro-poor programmes and increasing coverage, show a real effort to make social protection more focused and transparent. The introduction of the Dynamic Social Registry, the expansion of food and wage support, and clearer reporting of programme-wise allocations signal a move toward evidence-based policymaking, which is both welcome and necessary.
Still, as the number of people in need continues to grow, a strong commitment to adequacy, efficiency, and inclusion is essential. The ultimate goal should not be to simply expand coverage for survival, but to build a pathway from dependency to dignity, from vulnerability to resilience. If designed and implemented well, social safety nets can be much more than temporary relief; they can become a cornerstone of social justice, human development, and long-term prosperity.
Author’s biography:
Muhammad Raihan Uddin is a research associate at the Bangladesh Institute of Governance and Management (BIGM) and a postgraduate in Economics at the University of Dhaka. He is available at raihan.uddin@bigm.edu.bd