A substantial Tk 5.41 trillion, equivalent to 57.64 per cent of the proposed FY27 budget, has been earmarked for poverty alleviation in the next fiscal year, according to finance ministry documents.
The allocation represents a Tk 893.19 billion increase, marking a 19.79 per cent rise, from the revised allocation of Tk 4.51 trillion in the outgoing fiscal year.
In proportional terms, the proposed allocation is also higher than the current fiscal year's 57.28 per cent of the budget, indicating a modest rise in poverty-related spending intensity.
Of the total allocation, 38.21 per cent of the proposed budget is expected to play a direct role in poverty reduction, while 19.43 per cent is projected to contribute indirectly.
Experts and economists have viewed the increased allocation for poverty alleviation positively, although they questioned whether allocations for several ministries would genuinely contribute to reducing poverty in real terms.
They have also recommended finalising the poverty budget formulation process based on a clear and specific methodology to ensure greater transparency and effectiveness.
The Ministry of Food has been identified as one of the key contributors to poverty alleviation in the proposed budget, with Tk 11.45 billion, 97.63 per cent of the total allocation, linked to that.
Of the total ministry allocation, 91.21 per cent is expected to contribute directly to poverty reduction, while another 6.42 per cent is projected to play an indirect role.
The finance ministry claims that Tk 6.13 billion, 91.19 per cent of the total allocation for the Statistics and Informatics Division (SID), will play a poverty reduction role - 90.04 per cent directly and 1.15 per cent indirectly.
An analysis of the document titled "Combined demand for grants" reveals that a total of Tk 5.24 billion under the SID would be spent to meet recurrent expenditures like wages, salaries, administrative expenses, and training.
"How the expenditure on salaries, honorariums, and other benefits for government employees would help reduce poverty remains unclear," says Dr Mustafa K Mujeri, former director general of the Bangladesh Institute of Development Studies (BIDS).
He tells The Financial Express that poverty-related budgets in Bangladesh have historically been prepared on a rule-of-thumb basis, without a proper assessment framework.
"An increase in poverty-related allocation is essential to address the ongoing challenges faced by the poor, particularly amid pressure on employment and income, as well as rising inflation," he says.
He stresses that such allocations should be properly assessed using a reliable and transparent methodology.
A total of Tk 419.0 billion, 89.65 per cent of the allocation proposed for the primary and mass education ministry, has been marked for poverty alleviation.
The finance ministry has claimed that over 80 per cent of the total allocations for several ministries and divisions, including the Bridges Division, Ministry of Disaster Management and Relief, Ministry of Agriculture, Ministry of Railways, Ministry of Liberation War Affairs, Road Transport and Highways Division, and Ministry of Women and Children Affairs, will be spent on poverty alleviation.
The ministry data shows that implementing agencies such as the Jatiya Sangsad, the President's Office, and the Office of the Comptroller and Auditor General will not incur any expenditure for poverty reduction.
The share of poverty-related spending by agencies, including the Posts and Telecommunications Division, Ministry of Science and Technology, Bangladesh Public Service Commission, Anti-Corruption Commission, Economic Relations Division, and the Supreme Court, will remain within 10 per cent of their total allocations.
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