Home ›› Economy ›› Budget FY24
The government aims to increase the allocation by Tk 12,696 crore for the social safety net programmes in FY2023-24, compared to the outgoing FY2022-23, which includes rise in some allowance schemes and expansion of coverage.
In FY24, Tk 1,26,272 crore will be spent on social security programmes, which is 16.58 per cent of the total budget outlay and 2.52 per cent of the GDP.
However, in the FY23 budget, the government had allocated 16.75 per cent of the total outlay and 2.55 per cent of the GDP, which means the poor will get slightly less from this chunk in FY24. The total proposed budget for FY24 is Tk 7,61,785 crore.
The social safety net allocation has increased in all recent budgets but it has been declining proportionately. In FY2021-22, it was 17.82 per cent of the total budget and 3.11 per cent of the GDP.
There are 10 social security programmes where cash has been transferred directly to the beneficiaries as allowances. In this chunk, festivals, Victory Day and Bangla New Year allowances for the freedom fighters have been added newly. Tk 16.71 core will be spent on this purpose.
Besides, medical treatment and honorarium of families of 1971 martyrs and wounded freedom fighters have been added for the first time as well. Tk 568.53 crore has been allotted for this.
Non-contributory transfer of all government employees (civil, military, railway and postal) from Grade 10 to 20 has been incorporated as social security as well.
While placing the proposed FY24 budget in parliament on Thursday, Finance Minister AHM Mustafa Kamal said, “We have systematically designed our social security programmes for the upcoming year, considering our government’s fundamental goals, objectives, and the current socio-economic situation.”
“In the coming fiscal year, some proposals for increasing the amount of allowances and number of beneficiaries in the social security sector have been made,” he said.
“The number of elderly beneficiaries will increase from 57.01 lakh to 58.01 lakh, and the monthly allowance will be raised from Tk 500 to Tk 600 for them,” the minister announced in the budget speech.
The number of widows and destitute women beneficiaries will increase from 24.75 lakh to 25.75 lakh, and the monthly allowance will be raised from Tk 500 to Tk 550. The number of disabled beneficiaries will also increase from 23.65 lakh to 29 lakh.
“It should be noted that all those covered by the disability database have been brought under this allowance,” he added.
The minister continued that monthly educational stipends for disabled students will be enhanced to Tk 900 for the primary level, Tk 950 for the secondary level, and Tk 950 for the higher secondary level from the previous rates of Tk 750, Tk 800 and Tk 900, respectively.
In FY24, the number of transgender beneficiaries will be increased from 4,815 to 6,880 and special beneficiaries from 2,600 to 5,620. The number of beneficiaries of Life Improvement Programmes for the underprivileged population will increase from 69,573 to 82,503 and special beneficiaries from 45,250 to 54,300, he said.
Additionally, the number of scholarship recipients will also increase from 21,903 to 26,283.
The finance minister said that the number of beneficiaries under the Mother and Child Assistance Programme will increase from 12,54,000 to 13,04,000 as well. In the employment program for the extremely poor, the daily wage rate will be increased from Tk 200 to Tk 400.
He said, “In addition to changes in the number of beneficiaries and allowances, we have introduced a more targeted, transparent, and accountable approach to the social security programmes by implementing the Government-to-Person (G2P) method.
“Under this approach, already in 22 out of 25 cash based programmes each beneficiary is receiving monthly allowances directly into their preferred bank account or mobile account through Electronic Funds Transfer (EFT) on a specified date.”
“In next FY, the rest cash based programmes will be brought under G2P. Now over 80 per cent cash based social security programmes are being implemented through G2P,” he added.
