14 social safety net programmes underbudgeted: CPD

Despite a proposed allocation of Tk 1,07,614 crore for social security in the upcoming Fiscal Year 2021-2022, a total of 14 categories under the safety net programmes see their budgeting slashed by varying amounts.

A post-budget analysis of the leading think tank, Centre for Policy Dialogue, finds that allocation in social protection programmes like Work For Money decreased by 34 per cent to Tk 1,500 crore from Tk 2,277 crore and Test Relief by 38 per cent to Tk 1,450 crore from Tk 2,325 crore while Income Support Programme for the poorest saw a decrease by 9 per cent to Tk 572 crore from Tk 626 crore.

“Given the Covid-19 pandemic, there was a strong need for more allocation for common people, but the proposed budget for the next fiscal slashed allocation in 14 categories under the social safety net programme,” said CPD Research Director, Khondaker Golam Moazzem at a post-budget press conference.

Drawing a reference to the demonstration for a dam by people at Satkhira, he said it is oftentimes found that fund allocated for different sectors remain unused, and it is also not used where necessary.

The economist urged the government to increase fund distribution for the best interest of commoners before passing the budget in the parliament.

The civil society institution found that the budgetary allocation went down in at least 14 social safety net programmes ranging from 6 per cent to 52 per cent.

The categories include Work For Money, Test Relief, Skills and Employment Programme, Development of the Living Standard of the Marginal Communities, Multi-Sectorial Programme to Prevent Violence Against Women, Income Support Programme for the Poorest (Care+ Dream), Infrastructure and Livelihood Improvement in Haor and Costal Area, Flood Management and Livelihood Improvement Project in Char/Haor Area, Improved Living Standard for Low-income People, Integrated Livestock Development to Improve the Socioeconomic and Quality of Life of the Backward Minorities Living in the Plain-land, Child Sensitive Social Protection in Bangladesh, Development programs for the Distressed and Neglected Women and Children, Char Development and Settlement Project-bridging, Rural Infrastructure Development (Non-ADP).

The poor who turned poorest in the face of the pandemic will bear the brunt of the allocation cut in the much-needed programmes, observed CPD in its post-budget analysis.

Unless there had been a fall in the allotment for the programmes, the needs of the marginalised and the vulnerable segment of population could be met, it added.

Programmes like primary school stipend and secondary and higher secondary stipend which helped girls register for educational institutes also came under the chopper of Finance Minister AHM Mustafa Kamal as he proposed Tk 1,900 crore for primary school stipend which is 49 per cent lower than that of Tk 3,712 crore earmarked for FY 2020-21.

After reducing 35 per cent allocation in the secondary and the higher secondary stipends, the minister proposed Tk 1,841 crore for FY2021-22 which was Tk 2,832 crore in FY21.

In 1982, the Bangladesh government initiated the female secondary education stipend and results from a pilot project suggested that the girls’ secondary enrollment increased from an average of 7.9 per cent to 14 per cent, according to the CPD reference.

After launching a nationwide stipend programme in 1994 and onward, girls comprised of 54 per cent in a secondary school as of 2018.

Despite a 12 per cent increase in the allocation for social safety net in the proposed FY2021-22 budget, the CPD said it is still lower than the average rate of increase of 17 per cent between FY10 and FY22.

Allocation for pension increased from Tk 23,000 crore in the revised budget for FY2020-21 to Tk 26,690 crore in the budget for FY2021-22 which is 16 per cent higher than the rate of increase of overall social protection.

The CPD budget review shows that social safety net budget excluding pension decreased by 13.49 per cent from FY21 to 13.41 per cent in FY22.

Social safety net budget excluding pension as a percentage of GDP decreased by 2.35 per cent from FY21 to 2.34 per cent in FY22.

Agriculture subsidy in the social safety net increased by Tk 7,970 crore from the outgoing FY2020-21 allocation of Tk 1,700 crore, with the fund rising by 369 per cent. 

Allocation in honorarium for Freedom Fighters increased by 62 per cent to Tk 4,653 crore from Tk 2,880 crore as the valiant freedom fighter will receive Tk 20,000 as honorarium per month which they are getting Tk 12,000 in the outgoing fiscal year.

It is still unclear when the funds – Tk 7,300-crore to combat the outbreak of the corona pandemic and Tk 5,000 crore to deal with economic and natural shocks -- will become necessary as ordinary people have already been bearing the brunt of pandemic and natural shocks, according to the think tank.