Bangladesh FY26 Budget Boosts Madrasah MPO Expenditure, Plans Teacher Salary Hike
The Ministry of Education has included 1,519 madrasahs under the Monthly Payment Order (MPO) scheme in the FY26 budget, leading to an increase in non-development expenditure. The interim government plans to revise the budget in December to accommodate potential salary increases for government officials and teachers.
The inclusion of madrasahs under the MPO scheme, along with adjustments to MPO teachers' salaries and allowances, will increase non-development expenditure. The Finance Division is expected to make significant changes to salary and allowance allocations in the revised budget. Currently, Tk 84,684 crore has been allocated for salaries and allowances to government officials and employees in the FY26 budget.
The revision aims to address a possible rise in perks for teachers under the MPO. The National Pay Commission, formed in July, is expected to suggest pay hikes for government officials and employees within six months. To finance the deficit, the division has projected borrowing of Tk 96,000 crore from external sources and Tk 1.25 lakh crore from domestic sources.
The national budget for FY26 is worth Tk 7.9 lakh crore, with 67.7% allocated to non-development expenditure and 32.2% to development expenditure. To meet additional spending, the Finance Division is instructed to find allocations for less important areas in the budget, keeping the budget deficit at 3.6%.
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