Originally posted in The Business Standard on 11 February 2025
Govt to expand social safety net with increased allowances, beneficiaries
Around 10 types of allowances – including those for the elderly, widows, women abandoned or neglected by husbands, and indigent disabled individuals – are likely to increase by Tk150-200
The government plans to raise allowance across various categories, expand the beneficiary base and increase funding for several social safety net programmes in the next budget.
Sources at the Ministry of Social Welfare told TBS that around 10 types of allowances – including those for the elderly, widows, women abandoned or neglected by husbands, and indigent disabled individuals – are likely to increase by Tk150-200.
In addition, budget allocations for employment programmes for the extremely poor, food-friendly programmes, the Vulnerable Group Development (VGD) programme and National Service programmes may also be raised.
The Ministry of Finance has asked the Ministry of Social Welfare to submit a proposal after evaluating the current social safety net framework, said Finance Adviser Salehuddin Ahmed after attending an event of the Bangladesh Secretariat Reporters Forum on Sunday.
He told TBS, “There are plans to increase some social safety net allowances as the current amounts are very low. A decision will be made after receiving the proposal.”
Shamima Ferdous, joint secretary of the Ministry of Social Welfare, told TBS yesterday, “We have sent letters to the ministries of Women and Children Affairs, Disaster and Relief, Liberation War Affairs, and Food, seeking feedback on the adequacy of social security allocations, their utilisation and necessary future actions.”
Under the existing social safety net, approximately 60 lakh elderly citizens receive Tk600 per month, 27.75 lakh widows and women abandoned by husbands receive Tk550 and 32.34 lakh indigent disabled individuals receive Tk850.
Additionally, the government supports transgenders, Bedes (a nomadic tribe), tea workers and marginalised communities with allowances, which may also see an increase.
The social safety net operates through 140 programmes under 26 ministries, with a total allocation of Tk1,36,026 crore for FY25, representing 17.06% of the national budget.
The total allocation also includes Tk36,580 crore for pension benefits of retired government employees, Tk8,828 crore for interest assistance on savings certificates, Tk342 crore for earthquake and disaster search and rescue equipment and Tk1,250 crore for the demand-based government primary school development project.
Economists, however, do not consider these areas, along with some others, as part of real social security.
Beneficiary vetting underway
A senior official of the Ministry of Social Welfare said, “A verification process is underway at upazila-level offices of the Department of Social Services to identify cases of multiple or ineligible beneficiaries within social security programmes.”
The official added that many individuals are receiving multiple benefits, while some ineligible recipients continue to be included. Plans are in place to exclude them and enrol those genuinely in need.
Gaps in social safety net programmes: Task Force
On 30 January, the Task Force on Economic Strategy Redesign submitted its report to Chief Adviser Muhammad Yunus, highlighting structural weaknesses in the country’s social security programmes.
The report pointed out that these programmes are fragmented and poorly coordinated across multiple ministries, leading to overlapping schemes and inefficient resource allocation.
It also noted that budget allocations for social security remain insufficient relative to the overall economy. Due to flawed beneficiary identification, many deserving individuals are excluded, while ineligible recipients continue to benefit.
Additionally, the report highlighted disparities between rural and urban social security coverage. While rural areas have stronger frameworks, urbanisation has created a new class of poor with no dedicated programmes. Limited digital access and issues like corruption and nepotism further prevent rightful beneficiaries from receiving support.
‘Allowance amount insufficient’
Fahmida Khatun, executive director of the Centre for Policy Dialogue (CPD), told TBS that the allowances provided under various social safety net programmes are currently inadequate.
The government sets fixed allowance amounts, which remain unchanged for years, without adjusting for market conditions or the living standards of people, she said, stressing the need to increase both the allowance amounts and the number of beneficiaries.
Fahmida Khatun noted that inflation has been a persistent issue for over two and a half years, while wages have remained stagnant.
She also highlighted the fact that inflation is higher in rural areas than in cities, where there are fewer alternative work opportunities. As a result, many people have fallen back below the poverty line. To address this, she advocated raising the allowance amounts and expanding the safety net programmes to include more people.
Fahmida Khatun said that the previous government focused heavily on developing physical infrastructure. However, with the new government in power, priorities should shift to address the current economic challenges.