Budget 2025-26

Welfare assistance and pension increased by five percent

June 27, 2025 9:46 am

All government pensioners and social welfare recipients are set to receive an additional five percent increase in their monthly allowances, on top of last year’s 15 percent increase.

Deputy Prime Minister and Minister for Finance, Professor Biman Prasad, says this move aims to ease the burden on citizens and help them better navigate current challenges.

Professor Prasad adds that it’s also a way the government is responding to cost-of-living challenges through targeted expenditure support measures.

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He states that a total funding of $220 million is provided, an increase of $10 million.

“We raised social welfare allowances, pensions and aftercare payments by 15 percent across the board and by 25 percent for those above the age of 70, receiving social pensions.”

The minister says the Aftercare Fund members will get a $0.8 million boost specifically for medical allowances.

He adds that they are continuing with their public-private partnership, under the free medical scheme, with over 64 general and dental practitioners and medical lab providers who provide free medical services to our people.

Professor Prasad adds that in the last two budgets, they made accessibility more targeted to those earning less than $30,000 per year and further extended this to all social welfare pensioners and kidney dialysis patients.

He adds that so far, they have paid $26 million.

However, this will be further reviewed in the financial year to reduce abuse in the system.

Professor Prasad adds that it is a budget that increases support for social welfare, agriculture, health, and education.

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