Home ›› 15 Jun 2023 ›› Front
To save money and curb corruption, the Prime Minister’s Relief Fund will issue savings certificates to beneficiaries, and earnings from the tool will be directly deposited to their bank accounts.
According to sources from the Finance Division, the Sonali Bank branch at the Prime Minister’s Office will issue these savings certificates, which the beneficiaries will get as family savings certificates.
The interest on these savings certificates will be equal to that of family savings certificates.
Additional Secretary to the Finance Division Dr Mohammad Altaf ul-Alam told The Business Post, “An initiative has been taken to offer savings certificates instead of cash from the Prime Minister’s Relief Fund.
“This will be positive for both the government and the beneficiaries.”
He said the initiative has been taken to save money as part of the government’s austerity measures. The government will be able to save hundreds of crores of taka which will help reduce the ongoing financial crisis. In addition to containing corruption, cash transactions will also be stopped.
Sources concerned said the needy and distressed families to whom the prime minister provides assistance will be able to meet their basic living expenses from the interest on savings certificates, but their principal amount will remain as a deposit. The interest rate of these savings certificates is above Tk 11.
A source from PMO said as part of the government’s public financial management agenda, the savings certificates process has been digitised. The savings certificates will be provided online from the Prime Minister’s Relief Fund.
According to the PMO sources, since 2019, more than Tk 11 billion has been provided as grants to 35,000 people from the Prime Minister’s Relief Fund. Out of this, Tk 140 crore was given in 2019, Tk 580 crore in 2020, Tk 324 crore in 2021 and Tk 75 crore till May 2, 2023.
For the family members of the victims and the injured in the August 21 grenade attack, Prime Minister Sheikh Hasina, after assuming office in 2009, created FDR of Tk 10-20 lakh per family from the Prime Minister’s Relief Fund as a permanent source of money. In the first term of the current government, 66 people were also given grants in September 2013. If any new donation is given to them, it would be given directly to their personal account as a savings certificates.
Former lead economist of the World Bank Bangladesh Mission Dr Zahid Hossain said if savings certificates are given instead of cash from the Prime Minister’s Relief Fund, the beneficiary family will be able to meet their daily expenses with the interest they get from it. But if cash is given, there is a possibility that it would be spent. Therefore, the decision to give savings certificates instead of cash is positive.
He said if savings certificates are given from the relief fund, the flow of money to the treasury will increase somewhat. But the interest liability will also increase at the same time. However, it can be seen as an overall positive initiative.
