Social security programmes get bigger allocations in national budget for FY26

The government has allocated Tk 1.17 trillion (Tk 1,167.31 billion) for social security programmes in the proposed national budget for the fiscal year 2025-26, marking a significant increase and reaffirming its commitment to poverty alleviation and human rights.

According to the budget document, the government views social protection not only as a vital development priority but also as a tool for addressing poverty and vulnerability nationwide.

The social security allocation is distributed among 95 programmes—sharply reduced from 140 last year—through efforts to streamline initiatives for better efficiency.

Among various components, social assistance comprises the largest share—40.78 per cent—spanning 36 different programmes, totalling Tk 475.97 billion.

This is followed by Social Insurance programmes of Tk 354.34 billion, three General Subsidies programmes with Tk 249.65 billion, 19 Labour Market Programmes with Tk 41.71 billion, 15 Social Care Service programmes with Tk 23.27 billion, 17 Community Development programmes with Tk 20.13 billion, and three Technical Assistance programmes with Tk 2.23 billion.

The document highlights that the increased allocation and restructuring reflect a strategic shift toward a more integrated and policy-aligned social protection system.

This year, the Finance Division introduced key reforms, including the use of a unified Operational Code under the Integrated Budget and Accounting System (iBAS++), enabling better expenditure tracking and reporting. Previously fragmented programmes—like those for the welfare of Hijra, Bede, disadvantaged communities, and tea labourers—once spread across four codes, have been merged into one.

These reforms align with the National Social Security Strategy (NSSS) recommendation to focus resources on fewer priority schemes addressing lifecycle risks effectively.

To improve transparency and coordination, each ministry and division must identify and classify their social security programmes into seven functional and nine lifecycle categories. Programmes are now categorised based on the type of intervention—cash, kind, food, or others.

This comprehensive classification is expected to enhance consistency, allow accurate monitoring, and ensure policy coherence across ministries. It also differentiates core social security interventions from broader development projects, ensuring better planning and resource allocation.

The government believes this consolidated approach will foster a more robust, responsive social protection system capable of efficiently serving those most in need.