Bangladesh raises monthly allowances for elderly, widows to bolster social security net

As much as Tk 1.26 trillion, or 2.52 per cent of GDP, has been allocated for social security programmes in the budget for FY24

The government plans to increase the monthly allowances for the elderly, along with widows and destitute women, under its social protection programmes in the upcoming fiscal year.

Finance Minister AHM Mustafa Kamal has earmarked Tk 1.26 trillion for the social security programme, accounting for 16.58 per cent of the total budget and 2.52 per cent of GDP.

Against the backdrop of global economic uncertainties, Kamal unveiled an ambitious budget of Tk 7.6 trillion pushing for the development of a ‘Smart Bangladesh’ in parliament on Thursday.

Accordingly, the old age allowance is set to be increased by Tk 100 to Tk 600 per month as the government expects the number of beneficiaries to rise to 5.8 million, compared to 5.7 million now.

Another 100,000 widows and destitute women will be added to the list of beneficiaries, taking the total to 2.58 million. Their monthly allowance will rise to Tk 550 from Tk 500.

Meanwhile, the government will also expand its social safety net to include 2.9 million disabled beneficiaries, up from 2.34 million.

Kamal also proposed raising the monthly educational stipends for disabled students to Tk 900 at the primary level, Tk 950 at the secondary level, and Tk 950 at the higher secondary level, compared to the previous rates of Tk 750, Tk 800, and Tk 900, respectively.

The number of beneficiaries from the Hijra community is set to rise from 4,815 to 6,880, while there will also be 5,620 special beneficiaries.

Life Improvement Programmes for the underprivileged population will be extended from 69,573 to 82,503 people. Additionally, the number of scholarship recipients will increase from 21,903 to 26,283.

The daily wage rate under the employment programme for the extremely poor will rise from Tk 200 to Tk 400.

In addition to increasing allowances and the number of beneficiaries, the government has also introduced a more "targeted, transparent, and accountable approach to the social security Programmes by implementing the government-to-person (G2P) method", Kamal said.

Based on this approach, beneficiaries are receiving monthly allowances directly in their preferred bank accounts or mobile accounts through electronic fund transfers in 22 out of 25 cash-based programmes, according to the minister. The remaining programmes will also be brought under the ambit of the G2P in the next fiscal year.

Currently, over 80 per cent of cash-based social security programmes are being implemented through the G2P, he said.