Government Proposes Tk 1.16 Lakh Crore for Social Safety Net in FY 2025–26 Amid Overall Budget Contraction

In the proposed budget for fiscal year 2025–26, the government has allocated Tk 1,16,731 crore for the social safety net sector, with Tk 91,297 crore specifically designated for social protection programs excluding pensions. The announcement came during Finance Adviser Dr. Salehuddin Ahmed’s televised budget address on Monday.

The total proposed budget stands at Tk 7,90,000 crore—Tk 7,000 crore less than the revised budget for 2024–25—marking the first time in Bangladesh’s recent history that the national budget has decreased year-over-year. Despite this reduction, operating expenditure is expected to rise to Tk 5,50,000 crore, while development spending is set to drop to Tk 2,40,000 crore. The Annual Development Programme (ADP) has also been scaled down to Tk 2,30,000 crore.

Approved earlier in the day by the Advisory Council led by Chief Adviser Dr. Muhammad Yunus, the budget reflects a strategic shift in priorities. A revenue collection target of Tk 4,99,000 crore has been set, with the National Board of Revenue (NBR) expected to generate the bulk of it.

Dr. Salehuddin emphasized that the increased allocation to social protection underscores the government’s intent to reduce poverty and expand support for vulnerable populations. The budget is scheduled to be passed on June 30, ahead of the new fiscal year beginning July 1.

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