Nearly two-thirds of the allocations under this fiscal year’s social security budget do not qualify as genuine social protection spending, according to a study by the Citizens Platform for SDGs, Bangladesh.
Bangladesh must urgently redirect resources within its fragmented social protection system and scale up a handful of proven programmes that directly benefit the poorest, according to a leading economist.
The government will increase the number of beneficiaries of various social safety net schemes by at least 10 lakh from fiscal year (FY) 2025-2026, but allowances will see a small increase, although poor groups have been facing stubbornly high inflation for years.
The universal pension would be out of reach of the extremely poor, such as day labourers, due to their inability to make contributions.
It fails to commit to reforms and address people’s sufferings
Under the FY24-25 social safety net programme of Bangladesh, the pension for retired government employees and savings scheme interest payments account for nearly the same allocation as social assistance for the poor, the old and the disaster-struck.
No matter how tight the budget is, the social safety net sector has to be given its due importance.
30 percent of total social safety allocations going to the non-poor
Data by the finance ministry showed that the allocation for the pensions and interest payments account for 30 percent of the total social security programme fund of Tk 126,090 crore for the current fiscal year of 2023-24.
Nearly two-thirds of the allocations under this fiscal year’s social security budget do not qualify as genuine social protection spending, according to a study by the Citizens Platform for SDGs, Bangladesh.
Bangladesh must urgently redirect resources within its fragmented social protection system and scale up a handful of proven programmes that directly benefit the poorest, according to a leading economist.
The government will increase the number of beneficiaries of various social safety net schemes by at least 10 lakh from fiscal year (FY) 2025-2026, but allowances will see a small increase, although poor groups have been facing stubbornly high inflation for years.
The universal pension would be out of reach of the extremely poor, such as day labourers, due to their inability to make contributions.
It fails to commit to reforms and address people’s sufferings
Under the FY24-25 social safety net programme of Bangladesh, the pension for retired government employees and savings scheme interest payments account for nearly the same allocation as social assistance for the poor, the old and the disaster-struck.
No matter how tight the budget is, the social safety net sector has to be given its due importance.
30 percent of total social safety allocations going to the non-poor
Data by the finance ministry showed that the allocation for the pensions and interest payments account for 30 percent of the total social security programme fund of Tk 126,090 crore for the current fiscal year of 2023-24.
Government must address issues with its effectiveness and distribution
