Social safety net allocation inadequate in proposed budget: Speakers

Economists and development experts have pointed out that the allocation for social safety net programmes in the proposed budget for FY2021-22 remains inadequate as new programmes should be implemented considering the existing realities of the Covid-19 pandemic.

“Along with increasing allocations and coverage of the existing safety nets, the government must also consider taking up new programs considering the existing realities,” Robert Shuvro Guda, lead economist of non-governmental organisation Unnayan Shamannay, said while addressing an online discussion session with university students on the proposed budget for FY2021-22, on Friday.

“A lot of workers are returning from abroad. A large portion of the urban workers are also returning to their villages. Safety nets should be initiated so that a significant share of these workers may be engaged in the rural areas,” he said.

The session was moderated by Unnayan Shamannay Coordinator Zahid Rahman, while sociologist and the organisation’s Emeritus Fellow Khondoker Shakhwat Ali made the concluding remarks.

“Safeguarding these people will contribute towards maintaining the domestic demand, which in turn will benefit the macroeconomic condition of the country as well,” Shuvro added.

The discussion also pointed out that priority must be given to safeguarding lives and livelihoods of the people although the country’s macroeconomic condition looks positive amid the pandemic.

“Bangladesh being on the way of attaining developing country status amid the pandemic situation reflects the macroeconomic strength of the country. However, instead of thinking about how long it will take to get the developing country status, policymakers must prioritise on safeguarding lives and livelihoods of the people. Bangladesh needs to start working on universal pension scheme and health insurance from now,” Unnayan Shamannay Policy Analyst Zinia Sharmin told the discussion.

At the same time, speakers at the discussion also said the government can choose to take a loan from reserve to ensure vaccination for 70 per cent to 80 per cent of the country’s population.

“The government may opt to take loan from the reserve to ensure vaccination for 70 per cent to 80 per cent of its citizens. This will increase the budget deficit by 0.4 per cent. Policy makers need not worry too much about this increase in deficit. Instead, they ought to prioritise ensuring adequate allocations for health, education, and social safety nets,” Shuvro told the discussion.

Meanwhile, Khondoker Shakhawat Ali said that there was still scope for a comprehensive socio-economic recovery from the adverse effects of the pandemic.

“Bangladesh, like any other country now, is going through an extraordinary phase. Hence, ‘business as usual’ budget is not expected from the policy makers. The journey of Bangladesh’s inclusive development had definitely hit a bump due to the pandemic. However, there is still scope for comprehensive socio-economic recovery,” he said.

Saying that the planning for recovery needs to be as participatory as possible, he also said policymakers must engage with all the stakeholders at home and abroad for a successful recovery.