Social security allocation rises but drops in share

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 a 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 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 the honorarium for 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.

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.”