Several countries, including Bangladesh following the global health crisis like Covid-19 are considering good governance in the expansion of their social safety net programs. Delivery mechanisms in many cases tend to be in line with the small programs. As field repots describe, in a context of coverage expansion and proliferation of new programs, the risk of creating increasingly complex systems characterized by cross-incentives is high. Lack of coordination, ambiguous criteria for identifying and selecting beneficiaries, low administrative capacity, lack of transparency and limited beneficiary participation pose risks for program effectiveness and can decrease accountability. Good governance can improve program outcomes through effective program coordination, stronger accountability arrangements, provider incentives and greater transparency and participation.
By now the serious health crisis is the expansion of Corona or Covid-19. Human beings have been caught up by death phobia because of Covid-19. Tension of the poor having no or less safety measures has appallingly increased. So theme of safety has changed its paradigm in the context of Covid-19. Not only poor, all citizens must be protected through safety net with social distancing, quarantine, life saving medicine and foods / programmes unreachable to the poor must be brought under social safety net. In a bid to enable the poor absorb the shock of Covid-19 impact, the budget for next fiscal (FY21) proposed an allocation of Tk 955.74 billion for the social security sector, which is 16.83 per cent of total proposed budget and 3.01 per cent of GDP. In the revised budget of the ongoing fiscal (FY20), the allocation was Tk 818.65 billion. “We are also implementing various programmes for the welfare of marginalised communities besides helping the people with disabilities”, said Finance Minister AHM Mostafa Kamal in his budget speech.
The government is to increase the scope of various social security programmes in the budget for fiscal year 2020-21 in response to the Covid-19 pandemic, and about Tk 88,000 crore has been allocated for this. Joint Secretary (budget coordination) of the Finance Division Shirajun Noor Chowdhury said, allocation for social security in the budget was being increased to 2.8 per cent of the GDP from the usual 2.5 per cent. At present, about one-fourth of families are covered by social security. The government has announced it would double the number of beneficiaries by 2023. Also, there are about 79 lakh beneficiaries under the social security net at present. It was learned that this number may reach around one crore in the next financial year. In the budget for the current financial year, Tk 74,367 crore has been allocated for the social security sector.
More than three crore people of the country are already living below the poverty line. According to various surveys by private organisations, the impact of the novel coronavirus on the economy and trade could push another three crore people below the poverty line.
Shirajun said the novel Coronavirus has caused a devastating effect on the income of the poor.
“More poor people are being brought under the social security net at this time. Additional allocations will also be made for the old-age allowance, widow’s allowance and interest-free microcredit distribution by the social welfare department for poverty alleviation. There are preparations to distribute rice among the poor at the rate of Tk10 per kilogramme for seven to eight months,” he said.
A Finance Division official involved in budget formulation said, “The government has allocated Tk 5,000 crore of its own funds for the salaries of export sector workers at just two per cent interest. The fund tenure is coming to an end in June. Although there is a fear of layoffs in the overall industrial and service sectors from next July in addition to the export sector, no special allocation is being made in this regard.”
Additional Secretary (budget, activities and evaluation) to the Social Welfare Ministry Mohammad Ismail said, 76,45,000 people are receiving an old-age allowance, widow’s allowance or disability allowance. A total 16.25 lakh new beneficiaries will be added in the next financial year. The amount of everyone’s allowance will remain unchanged. In the next budget, the allocation has been increased by Tk 1044.50 crore to reach Tk 6,096 crore.”
He said the Social Welfare Ministry distributes interest-free micro-credit to alleviate poverty through four programmes. Interest-free loans ranging from Tk 5,000 to Tk 30,000 per family are given to the very poor. The allocation for this sector in the next financial year will increase. In the current Financial year, the allocation is Tk 64.50 crore.
According to Finance Ministry officials, the honorarium of the Freedom Fighters has been increased from Tk 10,000 to Tk 12,000 per month in the current Financial year. This will remain unchanged in the next financial year. However, as 1,256 new Freedom Fighters have been added to the list, the allocation for their honorarium is being increased.
In the current financial year, about 11.50 lakh people – including working lactating mothers, poor mothers, tea workers, plus members of the third gender and Bede communities – are eligible for social security. This number may increase to 13 lakh in the next financial year, said Finance Ministry officials.
Former finance adviser Dr. AB Mirza Azizul Islam informed, many people living above the poverty line have become poor due to the novel Coronavirus. They need to be pulled above the poverty line by increasing the coverage of social security. Money should be spent on social security instead of financing projects.
(Dr. Kashem is Pro Vice-Chancellor, Bangladesh University of Professionals and Dr. Mashreque is a retired professor, Chittagong University).
