Finance Minister Abul Hassan Mahmood Ali on Thursday proposed bringing more people under the Social Safety Net programs as he noted substantial progress in poverty alleviation and employment due to the government's multi-pronged interventions.
He proposed an allocation of Tk136,026 crore for social safety net programs for FY25, up from Tk126,272 crore in FY24.
Proposing a Tk797,000 crore (Tk7.97 trillion) outlay in parliament, he also said that all cash-based social safety net programs would be brought under the Government-to-Person (G2P) system by the year.
He also recommended integrating climate risk management with social security planning to ensure sustainability and resilience.
This was his maiden budget unveiling and the first budget after the re-election of the Awami League government in January.
He said the poverty rate dropped from 31.5% in 2010 to 18.7% in 2022, and extreme poverty fell from 17.6% to 5.6%.
This success is due to inclusive growth policies and extensive social security programs, including the National Social Security Strategy.
Smart social security
Prime Minister Sheikh Hasina inaugurated the G2P system for electronic payment of allowances to beneficiaries within the social safety net on January 14, 2021.
Now allowances are being distributed to a total of 11,531,567 beneficiaries through the G2P system.
Additionally, the finance minister said, a nationwide survey to identify individuals with disabilities has been completed, leading to the creation of the Disability Information Management System software, which contains data of approximately 3.33 lakh identified disabled persons.
A database server has been set up at the Bangladesh Computer Council to store data in this software.
Of 115 social safety net programs, 34 are cash-based, and 19 of these programs are currently disbursing funds directly to beneficiaries' bank accounts or mobile banking accounts via the G2P system.
“At present, more than 93% of the cash-based social safety net programs benefits are being paid through the G2P system. The remaining cash-based programs will also be brought under this system in the next fiscal year,” the minister said.
Disability protection program
In the next financial year, the finance minister said the number of disability allowance recipients will be increased from the current 2.9 million to 3.2 million.
Besides, stipends for students with disabilities will be raised from Tk950 to Tk1,050 at the higher secondary level, he said.
Mother and child support program
An MIS-based Mother and Child Support Program has been launched under the National Social Security Strategy, replacing the Rural Maternity Allowance and the Urban Working Lactating Mother Support Fund Program.
Under this program, the beneficiaries received Tk800 per month for up to 36 months by signing up online.
Additionally, it has been decided to expand the program, through which the number of beneficiaries will increase from 1,504,800 to 1,655,280 in the next fiscal year, said the finance minister.
Protection of elderly, widows and abandoned women
As the life expectancy of the population rises, the finance minister said, the government is paying special attention to the well-being of the elderly population.
In FY24, an allocation of Tk4,260 crore has been proposed to provide a monthly allowance of Tk600 to 5.8 million senior citizens.
In the upcoming fiscal year, the number of beneficiaries will increase to over six million and an allowance of Tk4,351 crore will be made in the budget, he said.
Protection backward communities
The finance minister said the government is committed to safeguarding socially marginalized groups, including the Vede and Hijra communities.
Currently, allowances are being provided to 6,880 individuals from the transgender community to raise their living standards.
There is a plan to widen the coverage of this support to a total of 12,629 people in the next fiscal year, he said.
“Besides, we will continue to provide allowances for the Vede community. In the upcoming fiscal year, a total of 9,832 individuals from other socially backward groups will be brought under the coverage of allowances,” he said.
“Education stipend programs for all marginalized communities, including Hijra and Vede, will continue to extend educational opportunities to them.”
Way forward
Considering the climate vulnerability faced by Bangladesh, the finance minister said, the government needs to prioritize the allocation of social security funds to green investments that not only promote environmental sustainability but also enhance economic resilience.
“By integrating climate risk management into social security planning, the government can combat climate-related economic disruptions, reduce future climate-induced migration, and ensure the system’s long-term stability.
“These measures are essential for adapting to the evolving economic landscape and ensuring the sustainability of social security for future generations,” he said.
