CPD proposes higher allocation on health, safety net in budget

Ibrahim Hossain Ovi

In a bid to tackle the health risk and to feed the poor increased by the Covid-19 pandemic, the Centre for Policy Dialogue urged the government to increase allocation for health sector and social safety net to 3 per cent and 6 per cent of GDP respectively for the fiscal year 2021-22.

The local think-tank made the recommendations at a virtual dialogue titled ‘CPD’s Recommendations for the National Budget FY2021-22’ on Thursday.

“With the existing allocation for the health sector, it is not possible to face the health crisis during the pandemic. So the allocation for the health sector should be increased to 3 per cent of GDP in the upcoming budget for the fiscal year 2021-21,” said Executive Director of CPD Fahmida Khatun.

In the current budget for the fiscal year 2020-21, budget allocation for the health sector is below one per cent of the country’s GDP, she noted.

“I think, even after increasing the allocation to 3 per cent of GDP, it would not be enough considering the needs in pandemic situation,” said Fahmida.

Replying to a question on the social safety net programme, Famida said if there was a universal social safety net programme, it was possible to protect people during crisis.

Considering the present situation of the country, budget allocation for the social safety net programme should be 4 per cent to 6 per cent of GDP as the poverty has increased due to the ongoing pandemic, she added.

Meanwhile, the CPD also called for an increased expenditure for the health sector and vulnerable groups.

“Public expenditure under the national budget for 2021-22 should highlight four areas such as ensuring better health facilities for Covid-19 patients, enhancing social safety net programmes for poor, new poor and marginalised people, raising allocation for employment-enhancing infrastructure development projects and supporting agriculture, SMEs and export-oriented industries for their recovery and thereby keeping the existing jobs, said Towfiqul Islam Khan, Senior Research Fellow at CPD said in his key note presentation.

The policymakers should prioritise readjustment, recovery and reforms in preparing in the next budget considering emerging challenges of the Covid-19 pandemic, he added.