Home ›› 03 Jun 2023 ›› Front
Although social security programmes’ allocation has been topped up and the net expanded a bit, the whole allocation looks healthier than its actual impact to cushion the people of vulnerable groups from inflation.
Allocation for the social safety nets has increased from TK 1,17,634 crore in the revised budget for FY2022-23 to Tk 1,26,272 crore in the proposed national budget for FY2023-24, which means an increase of only 7.34 per cent but that is still lower than the average increase rate of 15.65 per cent between FY2009-10 and FY23.
Money allocation for the poor in three important programmes has been slashed from 9.8 per cent to 29.30 per cent, which may affect them drastically. Under these programmes — Vulnerable Group Feeding (VGF), Open Market Sales (OMS), and Employment Generation Programme for the Poorest (EGPP), people get direct benefits from the government.
Even, there are eight programmes where per beneficiary allocation per month is between Tk 1 to 20, which is less than the price of a medium size loaf of bread.
The Centre for Policy Dialogue (CPD) in its budget briefing pointed out the significance of the allocation for the social security programmes, where they said that the allocation of pensions, which has been included in the social safety budget, has been increased by 24.6 per cent and it’s over three times the rate of hike of overall social protection.
However, the total allocation for the sector compared with the previous budget has decreased in terms of total budget outlay and GDP. If the pension scheme is excluded from the chunk, as per the percentage of GDP and total budget, the allocation has gone down.
CPD Executive Director Fahmida Khatun said, “The brunt of the current economic challenges has fallen on the poor. The government needs to increase the allocation and expand the net. We think the importance of the poor people has decreased.”
She said the inclusion of the pension scheme in the social safety net budget and allocating more there indicates which sector has been prioritised. There is an instance that in a project for the poor, only Tk 1 has been allotted for a person in one month.
CPD recommended excluding programmes like pensions for retired government employees and their families, savings certificate interest assistance and agricultural subsidy from the social safety net budget.
Better steps needed
CPD Research Director Khondaker Golam Moazzem said that the safety net purview has been expanded to some extent but still, this Tk 50-100 hike is not sufficient. These people will be able to barely afford one-two kg extra rice with this money at best.
He cited a recent CPD survey where they projected that 57 lakh elderly people and 25 lakh widow beneficiaries, almost 30 per cent of the elderly and 33 per cent of the widows, are not eligible for the allowance. If this can be prevented, 42 per cent more eligible beneficiaries, who are currently out of the safety net, can be added to the list.
Considering the high inflation, the social safety net allowances should be raised to Tk 2,000-3,000. If the government can stop tax evasion, these amounts can be provided to the poor who are eligible, he added.
In FY24, some proposals for increasing the amounts of the allowances and number of beneficiaries in the social security sector have been made, like raising the number of elderly beneficiaries from 57.01 lakh to 58.01 lakh and their monthly allowance from Tk 500 to Tk 600 and raising the number of widows and destitute women beneficiaries from 24.75 lakh to 25.75 lakh and their monthly allowance from Tk 500 to Tk 550.
The number of disabled beneficiaries will also be increased from 23.65 lakh to 29 lakh. Monthly educational stipends for disabled students will be hiked 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.
Additionally, the number of scholarship recipients will also increase from 21,903 to 26,283.
