Govt plans annual review of cash safety-net benefits tied to inflation
BY Insider Desk
September 24, 2025

The government is set to introduce an annual review of cash-based social safety net benefits, linking them to the Consumer Price Index (CPI) to ensure allowances remain effective against inflation, officials said.
A recent Finance Division meeting decided that benefits under six major cash programmes, including old-age, widow, disability allowances, and education stipends, will be adjusted at least once a year.
Programmes supporting underprivileged communities, mothers and children, and employment opportunities for the extremely poor are also included.
Currently, Bangladesh operates around 95 social safety net schemes, of which 21 are cash-based.
Officials said the review may be based on three options: CPI alone, Gross National Income (GNI) per capita, or a weighted average of both. CPI would protect allowances from inflationary erosion, while GNI could reflect broader economic growth.
An inter-ministerial committee, led by the Additional Secretary (Budget-1) of the Finance Division, has been proposed to carry out the reviews, with representatives from the Cabinet Division and other relevant agencies.
In the 2025-26 fiscal year, the government allocated Tk 1.167 trillion for social security programmes — 14.78% of the national budget and 1.87% of GDP.
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