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Despite a large number of families on the threshold of poverty due to rising inflation rate and soaring commodity prices the government did not hike the allowances for the ultra poor under social safety net programme in the proposed budget for the FY2022-23.
On Thursday, Finance Minister AHM Mustafa Kamal placed Tk 6, 78,064 crore budget for the FY2022-23 before the parliament.
In the FY2022-23 proposed budget Tk 1, 13,576 crore has been allocated for the social safety net which was Tk 1, 07,614 crore in the previous budget. The new budget for safety net is 16.75 per cent of the total budget and 2.55 per cent of the GDP.
The amount Tk 500 for elderly people, tea workers, hijra, widows and gypsy will remain unchanged for the seventh consecutive fiscal year since 2015 when it was last elevated from Tk 100 though the National Social Security Strategy (NSSS) has recommended per capita social protection allocation increase every year to keep pace with inflation rate.
The good news is this time the monthly allowance for the disabled persons has been increased by Tk 100. It is now Tk 750-Tk 850.
In March this year the inflation rate was 6.22 per cent which climbed to 6.29 per cent in April resulting in price hikes of all types of food and commodities recently.
Many families are struggling to maintain a decent life with a limited budget. The struggle mainly started in early 2020 with the outbreak of Covid-19. The Ukraine-Russia war’s effect is now acting behind the price hike of a number of commodities as well.
With the monthly allowance from the social safety net an elderly, widowed or hijra cannot buy more than a liter of soybean oil, five kg rice and a dozen eggs for once in a whole month.
Social protection beneficiaries are saying that the allocation is not enough for them while the Centre for Policy Dialogue suggested that the per capita allocation for each under the social security programme should be minimum Tk 1, 000.
The allocation for the social safety net has been increased but proportionately it declined from 17.82 per cent to 16.7 percent of the total budget and from 3.11 per cent to 2.55 per cent of the GDP.
In his budget speech, Finance Minister AHM Mustafa Kamal said, priority had been given to the destitute aged people, especially women. In the FY2022 budget an allocation of Tk 3, 444.54 crore was provided for 57.01 lakh beneficiaries at the monthly rate of Tk 500 and it will be continued.
In the FY2022, allowances are being provided to 20.08 lakh disabled persons at the monthly rate of Tk 750. The number of beneficiaries is planned to be increased by 3.57 lakh in the next FY2023 to 23.65 lakh in place of 20.8 lakh.
“Our government is considering maternal and child support programmes as the best investment under social safety net programmes. As a result, considering the priority of this programme, I am proposing to increase the number of beneficiaries by 2 lakh 9 thousand and thus the total number of beneficiaries will be 12 lakh 54 thousand in FY22-23 from 10 lakh 45 thousand in FY 21-22. The total allocation for this sector in FY22-23 is Tk 1, 243 crore,” he said.
Already, 29 per cent of households have been covered by the programme, he added.
Food and cash assistance
The minister said the government is now distributing 5 lakh MT of rice and 5.09 lakh MT of wheat flour in the current fiscal year 2021-2022 and this will continue in the upcoming year as well.
“In the lean season - September, October and November and March and April food assistance of 30 kg of rice each month at the rate of Tk 15 would be provided to 50 lakh low-income households,” he said,
The ongoing programme of selling rice at Tk 10 per kg to the low-income people across the country will continue. Cash assistance of Tk 2, 500 for day labourers, farmers, laborers, domestic workers, motor vehicle workers and people involved in other professions will continue as well, he said.
‘Family Card’ Programme
The Russia-Ukraine conflict and the disruption in the global supply chain compelled the government to introduce the Family Card programme to distribute essential commodities among the poor across the country at a low cost.
A list of one crore families has been finalised under this programme.
A total of one crore family including the families who have received Tk 2, 500 as cash assistance during the pandemic period are getting family cards from TCB. As a result, about five crore low-income population of the country will be directly benefited from this government initiative.
Cash Transfer under G2P system to be strengthened
The government has decided to bring 100 per cent payment of all social safety net allowances under the G2P system by FY2022-2023. More than 60 per cent of such payments have already been brought under this system. In addition, a Uniform Social Register based on G2P has been developed in the iBAS++.
Cash transfers of all social safety net programmes including old age allowance, widow’s allowance, disability allowance, freedom fighter’s honorarium, maternity allowance and educational stipend are being sent quickly in this process, the minister said.
