Ensure social safety net programmes’ benefit for poor

Amid economic volatility the government’s allocation for social safety is reportedly not likely to increase much in the next budget. Social safety programmes are likely to receive Tk1.2 lakh crore which is 15.76 per cent of the total budget of Tk7.61 lakh crore for 2023-24. The allocation is a bit higher than Tk1.13 lakh crore allocated in the current budget. But in the current budget the allocation is 16.75 per cent of the total budget of over Tk6.78 lakh crore. The amount sounds a big allocation but there is a jugglery of figure.

The full allocation doesn’t mean for the poor. Of the total allocation, 35 per cent will go to retired government employees and their families as pensions and national saving certificate interests. The rest of the money will be distributed among the poor. That too is questionable. Because of political interference this entire money doesn’t permeate into the bottom level.

In the current fiscal year (FY23), the government allocated a total of Tk1, 13,576 crore or 2.55 per cent of the Gross Domestic Product (GDP) for the social safety net programmes. Of the allocation, Tk7907 has been earmarked for paying interests of saving tools and Tk28, 037 crore for paying pensions of retired government employees. If the expenditure on the two sub-sectors in question is excluded, the total allocation for the sector stands at Tk77, 632 crore or 1, 74 percent of the GDP.

An analysis of five fiscal years including the current one carried out by The Business Post found the similar picture. The International Monetary Fund (IMF) asked the government not to count these two sub-sectors as social safety net expenses as part of its $4.7 billion loan programme for Bangladesh.

Even the World Bank report of 2021 citing BBS data said the eligibility criteria were not met by 26.6 per cent of the beneficiaries of allowance for the elderly and 38.4 per cent of those in employment generation programme. Isn’t it depressing, shocking and incredibly deceptive? What is left then? Who are the beneficiaries?

The social safety programmes are only meant for poor, not for any other sections of the society. The government has 141 social safety net programmes. OMS (Open Market Sale) and VGD (Vulnerable Group Feeding) are not also going to see any rise when amid this economic downturn social safety net programmes are more important than anything else.

Zahid Hussain, former lead economist of the World Bank, Dhaka office, rightly pointed out that there is a tendency of the government to show higher allocation for the social safety net programmes by including the expenditure on pensions, bond interest, or interest payment on stimulus packages. He also said there are many expenses which actually don’t fall under the social security sector but are being shown as its part.

Whatever percentage of the GDP is shown the actual percentage is always less than one percent of the GDP. In our country widows, senior citizens, physically challenged people, pregnant mothers, freedom fighters and retired civil servants are entitled to the benefits of social safety net programmes.

Apart from them, cash-based social security schemes like food for work, cash for work, test relief and food sales in the open market are the part of social safety net programmes.

We think that the social safety net programmes should be redefined by the government so that only the poor, more particularly, the lowest of the low can enjoy the benefit of the scheme. It will also help the government to cushion the blow of the worst inflation the country is facing now.