Budget utilisation in social protection sees steady growth: Report

The budget utilisation rate for social protection in Bangladesh has improved in recent years, largely due to the implementation of a comprehensive social security framework, although the average utilisation remains around 85% of the original allocation.

Larger programmes such as Old Age Allowance, Widow Allowance, and Disability Allowance continue to demonstrate higher utilisation rates — surpassing 99% for three consecutive fiscal years — due to their regular nature and efficient delivery mechanisms, according to a budget document titled Social Security Budget Report 2025-26,.

"The perfect 100% utilisation rate achieved by the Widow Allowance Programme in FY 2021-22 reflects the precision of beneficiary targeting mechanisms and payment systems," the report said.

In contrast, disaster-response initiatives tend to have more variable utilisation rates, reflecting their demand-driven nature.

The government's social protection system has been praised for providing critical support to vulnerable populations with 'outstanding efficiency and reliability', the report said.

The document mentioned that the expansion of Vulnerable Group Feeding (VGF) utilisation with supplementary allocation in FY 2023-24 illustrates the programmes' necessity to scale during periods of economic pressure due to Covid-19.

"Open Market Sales [OMS] operations have consistently exceeded targets with over 100 percent utilisation, showcasing operational readiness to address food price volatility."

It also mentioned that Continuous improvements in programme implementation, evidenced by the Mother and Child Benefit Programmes' rise to almost 100 percent utilization, reflect ongoing enhancements to service delivery mechanisms.

These achievements collectively represent a comprehensive social security framework that balances predictable support with responsive interventions tailored to development context of Bangladesh, it said.

From effective monitoring purview, the Government has strengthened its monitoring of social security budget implementation through the Integrated Budget and Accounting System (iBAS++) and the Single Registry, ensuring greater transparency and efficiency in social protection delivery.

iBAS++ enables real-time tracking of fund utilisation across all programmes, allowing for prompt identification and resolution of disbursement bottlenecks, while the Single Registry's unified targeting mechanism prevents duplication and improves beneficiary selection accuracy.

This digital integration has significantly enhanced the government's ability to monitor programme performance, optimise resource allocation, and generate timely reports for evidence-based policymaking, ultimately leading to more effective and accountable social protection services for vulnerable populations.

The system's dashboard analytics provide actionable insights into budget execution rates, beneficiary coverage, and geographical distribution of benefits, enabling data-driven decisions to maximise the impact of social protection.

As per the document Government's strategic allocation and efficient implementation of the social security budget demonstrate a comprehensive commitment to reducing poverty and vulnerability across all life stages.

By prioritising evidence-based interventions and leveraging digital monitoring systems and the Single Registry, the social protection framework has achieved remarkable efficiency in service delivery while ensuring fiscal sustainability.

The balanced distribution of resources between immediate safety nets and long-term human capital investments reflects a forward-looking approach to social development.

The Government, as per the document, is implementing an inclusive social security strategy that addresses critical national priorities, including climate resilience for vulnerable communities, gender-responsive poverty alleviation, and balanced investments in both immediate safety nets and long-term human capital development.

"Through the FY 2025-26 budget, the government aims to strengthen climate-adaptive social programmes, particularly for coastal populations, while expanding targeted support for women and establishing robust shock-responsive mechanisms to mitigate economic and climate-related risks."

This integrated approach combines proven interventions like VGF/VWB with innovative human capital investments, while maintaining fiscal sustainability through improved targeting and efficient resource management, ensuring an adaptive social security system, the budget document said.