More attention needed for those in greatest need
Consequently, a mere 40.33% of the allocated budget will be directed towards those in the greatest need
The government has allocated Tk1,26,272 crore for social safety net for FY2023-24, which is around 7.4% more than last year's allocation of Tk1,13,576 crore. Also, the allocated number this year is 16.58% of the total budget allocation and 2.52% of GDP.
However, a distressing scenario comes to light upon closer examination of the numbers.
The National Social Security Strategy (NSSS), adopted in 2015, stipulates that the allocation for the safety net should be 3% of GDP, a target that the current allocation fails to meet.
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Moreover, an alarming revelation is that almost three-fifths of the allocated funds will not be directed towards the vulnerable segment of the population. Surprisingly, approximately 59.67% of the total budget allocation is earmarked for the non-poors.
These funds are allocated for pensions for retired government employees and their families, interest payments for national savings certificates, agriculture subsidies, interest subsidy for SMEs, and allocation for health risk and natural shock management.
Consequently, a mere 40.33% of the allocated budget, equivalent to a scant 1.01% of GDP, will be directed towards those in the greatest need. This highlights the inefficiency and inequity of the safety net, posing a growing risk of pushing more low-income households into poverty, exacerbated by the prolonged escalation of both food and non-food prices.
The 2015 United Nations report on global hunger recognized Bangladesh for successfully reducing chronic hunger by over half since 2000. Unfortunately, the subsequent impact of the Covid-19 pandemic, coupled with the Ukraine-Russia war, led to extensive supply chain disruptions, triggering a worldwide food and energy crisis. Consequently, Bangladesh is experiencing soaring food prices as a part of this global phenomenon.
In this challenging scenario, the government's sale of subsidised essential food items through the Trading Corporation of Bangladesh (TCB) is likely to be a lifeline for many. Additionally, sales programmes by the Ministry of Fisheries and Livestock and other initiatives may prove essential if the ongoing global food and energy crisis persists, and the government struggles to curb price hikes in the kitchen market.
However, the government will have to be more sincere in alleviating people's sufferings, considering that customers still endure long queues at TCB sales centres, facing extreme weather conditions. Moreover, these programs should not be confined to Dhaka alone but should be extended across the country to ensure wider accessibility.
