Time to overhaul the social safety net programme
It is disconcerting to see how our social safety net is failing to provide timely and meaningful relief to the disadvantaged groups at a time when the prices of essential goods have skyrocketed, making them more vulnerable. As several recent reports show, the safety net continues to overpromise and underdeliver, as the current model spreads insufficient funds across too many small, often overlapping programmes (140 in total), with nearly half of the budget directed to pensions for government employees and interest payments on savings certificates. That leaves actual beneficiaries with little support.
A look at the social welfare ministry data reveals how inadequate it is. For example, the monthly allowances for widows, the elderly and persons with disabilities—who rank among the most vulnerable in our society—are Tk 550, Tk 600 and Tk 850, respectively. There has been only a negligible increase in the amounts over the decades despite a steep rise in inflation during this period, with a Centre for Policy Dialogue (CPD) analysis of the prices of 34 essential food items showing a hike by up to 310 percent between January 1, 2019 and May 19, 2024. Given this reality, the paltry sum given to the beneficiaries amounts to little more than symbolic support.
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According to official data, 18.7 percent of the country's population, or 3.17 crore people, are poor, while 5.6 percent, or 95 lakh people, are extremely poor. The social safety net is supposed to provide a cushion to these groups, but it can't, primarily because of the insufficient allocations. The system is also plagued by selection errors, with many ineligible individuals benefiting at the expense of the poor. Last year, a CPD study found that an estimated 33 lakh elderly people and 25 lakh widows eligible for assistance were not listed. Even though the interim government sought to update the beneficiary lists to address these issues, the drive has reportedly hit a snag because of the absence of many local public representatives.
As a result, over 1.21 crore beneficiaries have yet to receive cash allowances for the first quarter (July-September) of the ongoing fiscal year. Moreover, according to a report in this daily, food distribution under various schemes also fell by 14 percent year-on-year, mainly due to reduced grain transfers under the Food for Work (FFW) and Food Friendly Programme (FFP).
Clearly, the social safety net is not working as expected. Under the current circumstances, there is no alternative to expanding its coverage through sufficient allocations and ensuring the inclusion of all eligible beneficiaries. But as experts say, this alone is not enough since providing cash or food support, while vital for the time being, perpetuates dependence without offering a sustainable solution to poverty. For that, the government must overhaul the entire system of social support. Rather than fixating on scattered allowances, it should implement comprehensive rehabilitation programmes aimed at lifting the poor out of poverty.
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