Govt secures funds for new Pay Scale; allocation increased to Tk 1.06 lakh crore

The government has significantly increased the allocation for salaries and allowances in the revised budget for the 2025–26 fiscal year, signaling a decisive move toward implementing a new national pay scale for public servants. The allocation has been raised by approximately Tk 22,000 crore, bringing the total earmarked for this sector to Tk 1,06,684 crore.

According to sources at the Finance Division, the additional funds have been secured to facilitate a partial implementation of the new salary structure as early as this month. While the current interim administration may not see the full rollout to completion, the budgetary provision ensures that a subsequent elected government can proceed with immediate implementation.

Budgetary Realignments and Operating Costs

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 the overall reduction, operating expenditure has surged to approximately Tk 5.63 lakh crore. To balance this increase, the government has trimmed the Annual Development Programme (ADP) or development expenditure to Tk 2 lakh crore.

Finance Ministry officials explained that operating costs remained high due to several non-discretionary factors, including:

• Interest payments on domestic and foreign loans.

• Continued subsidies in the energy and agriculture sectors.

• Capital support required for ongoing bank mergers.

• Incremental hikes in various social and service allowances.

Status of the 9th Pay Commission

The National Pay Commission, led by former Finance Secretary Zakir Ahmed Khan, is currently in the final stages of drafting its recommendations. Sources indicate the report may be submitted to the government as early as this week, with January 21 cited as a target date for formal submission.

Finance Adviser Dr. Salehuddin Ahmed recently emphasized that once the commission's recommendations are received, the government will take swift measures to move toward implementation. The proposed scale is expected to include a significant increase in salaries at the lower grades to counter the impact of inflation over the last decade.