Social safety net expands with digital cards

The government is planning a major expansion and digital transformation of social safety net programmes in the proposed 2026-27 budget with an aim to bring nearly 1.2 crore more people under social protection.

A key focus of the programme is direct digital disbursement of allowances and subsidies.

In partnership with Visa and Sonali Bank PLC, the government has introduced the Farmer Card, which will function as both an identification and payment card.

Beneficiaries will be able to withdraw cash from ATMs and make digital payments through POS machines.

Officials said the system would ensure secure and transparent distribution of subsidies while reducing irregularities and dependence on manual processes.

Sabbir Ahmed, country manager of Visa for Bangladesh, Nepal and Bhutan, said the rollout would be implemented in phases and beneficiaries would not have to pay any service charges.

Finance Minister Amir Khasru Mahmud Chowdhury said adequate allocations would be made for the programmes and described them as key initiatives for women’s empowerment and support for marginalised groups.

NBR Chairman Abdur Rahman Khan said the upcoming budget would include measures to broaden the tax net while prioritising trade facilitation and consumer relief.

The number of social safety net beneficiaries is expected to rise from 2.6 crore to 3.63 crore in the next fiscal year and the allocation for the sector may increase from Tk1.16 lakh crore to more than Tk1.3 lakh crore.

Under the Family Card programme, beneficiaries will increase to 41 lakh families, each receiving Tk2,500 monthly through banks or mobile financial services. Officials said the programme would eventually evolve into a “Life Cycle Social Protection Model” integrating multiple government supports into a single platform.

The Farmer Card programme will also expand significantly, bringing around 42.5 lakh farmers under digital cash support aimed at easing rising production costs and strengthening the rural economy.

Old age allowance will rise from Tk650 to Tk700 per month, while citizens aged 90 or above will receive Tk1,000 monthly. Beneficiaries will increase from 61 lakh to 62 lakh.

Allowances for widowed and destitute women will also increase from Tk650 to Tk700, while women aged 90 or above will receive Tk1,000. The number of beneficiaries will remain at 29 lakh.

Under the disability allowance programme, beneficiaries will increase from 34.5 lakh to 36 lakh, although the monthly allowance will remain Tk900. Disabled persons aged 90 or above will receive Tk1,000.

The Mother and Child Assistance Programme will add around 1.19 lakh beneficiaries, raising the total to 18.95 lakh, though allowance rates will remain unchanged.

Medical assistance for patients suffering from cancer, kidney disease, liver cirrhosis, stroke-related paralysis, congenital heart disease and thalassemia will increase from Tk50,000 to Tk100,000. Beneficiaries will rise from 60,000 to 65,000, while allocation for the programme is proposed to increase from Tk300 crore to Tk650 crore.