Govt secures funds for new Pay Scale; allocation increased in revised budget

The government has increased the allocation for salaries and allowances in the revised budget for the 2025–26 fiscal year, signaling active preparation for the implementation of a new national pay scale. According to the revised estimates, the allocation for this sector has been raised by approximately Tk 22,000 crore, bringing the total to Tk 1,06,684 crore.

Sources at the Finance Division stated that the additional funding has been earmarked to facilitate the partial implementation of the new salary structure, potentially starting from January. While the current interim administration may not see the full rollout to completion, the allocation ensures that a subsequent elected government can take swift action on the matter.

The original budget for FY 2025–26, initially set at Tk 7.90 lakh crore, has been marginally revised downward to Tk 7.88 lakh crore. Despite this overall reduction, operating expenditure has been increased to approximately Tk 5.63 lakh crore, while the Annual Development Programme (ADP) or development expenditure has been trimmed to Tk 2 lakh crore.

Finance Ministry officials explained that operating costs remained high due to several non-discretionary factors, including interest payments, subsidies, capital support for bank mergers, and various allowance hikes. Consequently, the development budget was scaled back to maintain fiscal balance.

Meanwhile, the National Pay Commission, headed by former Finance Secretary Zakir Ahmed Khan, is in the final stages of its report. The findings are expected to be submitted to the government as early as this week. Finance Adviser Dr. Salehuddin Ahmed recently stated that the government would take the necessary steps to implement the new pay scale promptly upon receiving the commission’s recommendations.