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Tk1.45trn being earmarked for social protection in FY27 budget

The government is set to significantly widen Bangladesh’s social protection system in the proposed FY2026–27 budget, with an allocation of about Tk 1.45 lakh crore and the introduction of several new programmes, led by the flagship “Family Card” initiative.

Officials at the Finance Division said the expanded outlay underscores a renewed policy emphasis on reducing poverty, narrowing inequality and improving the living standards of vulnerable groups.

The proposed allocation marks a substantial increase from Tk 1,16,731 crore in the current fiscal year.

Key decisions on the size of benefits and the number of recipients were finalised at a recent meeting of the Cabinet Committee on Social Security Programmes, chaired by Finance and Planning Adviser Amir Khosru Mahmud Chowdhury.

New schemes, Family Card takes centre stage

At least eight new schemes are set to be launched from the next fiscal year, with the Family Card programme taking centre stage. Under the initiative, around 4.1 million women-headed households will receive Tk 2,500 a month, at an annual cost of Tk 12,374 crore.

The programme, already introduced on a pilot basis, is designed to cover about 16.1 million families over five years, with an estimated total expenditure of Tk 1.34 lakh crore.

Alongside this, the government plans to introduce a Farmer Card scheme that will bring 4.25 million farmers under a modest cash support system, each receiving Tk 2,500 annually.

A separate programme will provide monthly allowances to families of those killed and individuals injured in the July uprising, covering more than 16,500 beneficiaries across different categories.

The budget also proposes a new honorarium scheme for personnel serving in mosques and other places of worship, extending financial support to over a quarter of a million individuals, including imams, priests and caretakers, with provisions for festival bonuses.

In addition, a temporary income support scheme for unemployed workers is being introduced, while the Vulnerable Group Feeding programme will be streamlined under a revised policy framework to cover 1.5 million beneficiaries.

Two employment-oriented initiatives—canal excavation and tree plantation—are also being included within the broader social protection framework. Officials say these programmes, though development-oriented, will contribute to income generation for low-income groups and therefore qualify as social protection measures.

Allowances, coverage to rise

Existing safety net programmes are set for expansion both in coverage and benefit levels. The old-age allowance will rise to Tk 700 per month, with the number of beneficiaries increasing to 6.2 million.

Support for widows and destitute women will be extended to 3 million recipients at the same rate, while disability allowances will increase to Tk 1,000 per month, with coverage expanding to 3.8 million people.

Education stipends for students with disabilities will also be enhanced, and the maternal and child benefit programme will be widened to reach nearly 1.9 million recipients.

Financial assistance for patients suffering from critical illnesses—including cancer, kidney disease and thalassaemia—is set to double to Tk 100,000 per person, alongside a modest increase in the number of beneficiaries.

Honorariums for families of gallantry award-winning freedom fighters will also be raised, although the base monthly allowance for freedom fighters will remain unchanged.

Targeting reforms, data-driven selection

To address long-standing concerns over leakages and mistargeting, the government plans to tighten beneficiary selection criteria.

National ID cards will be made mandatory for all recipients, while minors will require birth registration along with their guardians’ identification.

A Dynamic Social Registry will be introduced to digitally identify and verify eligible beneficiaries, with the aim of improving transparency, coordination and efficiency across programmes.

Policy analysts have welcomed the expansion but cautioned that the effectiveness of the increased spending will depend on governance reforms.

They say strengthening targeting mechanisms, reducing duplication and limiting political interference remain critical to ensuring that benefits reach the intended recipients.

Officials said the overall national budget for FY2026–27 is being finalised at around Tk 9.38 lakh crore, up from Tk 7.9 lakh crore in the current fiscal year, with social protection emerging as one of its central pillars amid continued economic pressures.

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