Bangladesh Bank data show that government subsidies to low-income bank accounts dropped sharply in January despite rising inflation and living costs.

Subsidies to no-frills bank accounts—used by marginalised individuals—fell by 43.81% to Tk 1.38 billion in January from Tk 2.47 billion in December. The number of social safety net accounts also declined slightly to 10.29 million. In November, the government disbursed Tk 3.67 billion through these accounts.

However, deposits in no-frills accounts rose marginally by 0.06% to Tk 71.45 billion in January.

Dr. M. Masrur Reaz, chairman of Policy Exchange Bangladesh, attributed the decline in subsidies to fiscal constraints and a possible review of recipients. He warned that this reduction could severely impact low-income groups already struggling with inflation.

The data showed a significant drop in subsidies for rural accounts, which fell by 61.77% to Tk 339.30 million in January from Tk 886.50 million in December. Urban accounts received Tk 1.05 billion in January, down from Tk 1.58 billion the previous month.

Dr. Reaz suggested that while reviewing beneficiary lists is necessary, the government should consider reallocating resources to support those in need.