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Bangladesh budget 2008-09 and Social Safety-Net June 23, 2008

Posted by bdoza in BANGLADESH, Budget, ECONOMY, GOVERNANCE.
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To overcome the impact of global food shortage and the price hike of the essentials on the poor and the lower middle class, the budget proposes to widen and deepen the social safety net programs by increasing the total number of beneficiaries and increasing the allotment to 16,932 crore in the present fiscal year which is 48% higher than the revised allocation of Tk 11467 crore.

To this purpose, government has allocated 100 days employment generation program to ensure employment of the rural unemployed poor across the country for 100 days during the whole year and in particular during mid-October to mid-January and mid-March to mid-May periods. 20 lac people will get the job opportunity under this program. The program is designed as an employment guarantee program for the unemployed poor. For this , Tk 2000 crore has been allocated in the budget. This will create 20 crore mandays with daily remuneration of Tk 100 per person. The budget claims,of all the safety net program launched so far, this is the largest.

In addition, Tk 1578 crore is proposed for the food for work program. This will generate another 14.4 crore mandays of employment.

Budget also supports self employment by providing funds to PKSP( Palli Karma Shahayak Foundation), NGO Foundation, Social development Foundation to bre channeled through different NGO organizations as microcredit.
The accumulated funds allocated to this organizations amount to Tk. 1950 crore. In the next fiscal year, the budget also proposes Tk. 526 more for the purpose.
Department and agencies under various ministries /divisions will provide micro-credit from both developmental and non developmental funds. In addition, these organizations also impart training to the beneficiaries. The funds for such micro-credit accumulated over the years stand at Tk. 1600 crore. The budget proposes another Tk 131 crore for the purpose. Employment for 1.5 crore families will be generated through this micro-credit operations.
For women and children welfare, budget increases the beneficiary coverage under allowances program for the windowed, deserted and destitute women from 8,25,000 to 9,00,000 and raise the rate of allowance from Tk. 220 to 250 per person. This will result in allocation of Tk. 270 crore which is 86 crore higher than the revised allocation of the current fiscal year.

The budget also launches a new pilot program titles Allowance for lactating mothers
in this fiscal year. The number of beneficiaries is increased from existing 45,000 to 60,000 and Tk 21.60 crore is alloted which is 27 percent higher than the current year’s allocation.

To support the poor and low income workers particularly for the working mothers of the garment sector, Tk 20 rore has been allocated for a new program titles Allowances for poor lactating working mothers in urban areas.

Under the Vulnerable group development (VGD) Program, the provision for distribution of 30 kg rice or wheat per head for 750,000 women will continue. This program will be continued to provide a monthly allowance of Tk. 400 per head to an additional 40,000 underprivileged women of eight northern districts.

A new program titled Rural employment and Rural maintenance Program funded by GOB at accost of Tk. 943 crore would be launched from next fiscal year. This will generate 50,000 jobs annually in 4926 unions. Under this program, 190 crore will be spent in the next fiscal year. Besides, programs such as Rural Emplloyment opportunities for public Assets(REOPA), Maternal Health Voucher Scheme(MIHVS) and Community Nutrition Program (CNP) would be strengthen further.

The subsistence allowance for different orphanages has been enhanced to Tk 1500 crore from January 2008. The per capita capitation grant for the private orphanages has been increased from Tk. 600 to Tk. 700. A program named Amader Shishu (Our Children) is being launched to rehabilitate 1500 children orphaned by Cyclone Sidr, in families of their close relatives. About 5 lack primary school children of 3 monga-affected districts are being provided with nutrition –fortified food under the School feeding program. This program will be extended to 10 districts of 6 divisions within the next fiscal year. In oder to take away child labourers from the risky environment, 30000 in number, their parents will be given incentives for bringig their children under non formal education program.
The budget is also enhancing the old age allowances from Tk. 220 to Tk 250 and increasing the beneficiaries from 17 lac to 20 lac.This will require the allocation to be increased from 448.80 crore to 600 crore in the next fiscal year.
The budget also increase the allowance for wounded freedom fighters, insolvent freedom fighters, insolvent persons wilh physical disability,
It also increases allotment to the National foundation for development of the persons with disability and increases the allotment for stipend for the students with disability. The budget also support to set up a National Committee to mitigate the suffering of monga affected areas.
It also adopted Char livelihood program and Hill tracts village centered program to improve the livelihood of the concerned areas. Bangladesh Bank also administering a fund for Housing for the Homeless and especial concession has been allowed for the victims of the river erosion and measures taken to distribute the Khas land to the destitute.

The social safely net program of the present budget is of unique character and very extensive in nature. Probably, for the first time in Bangladesh, a budget addresses the problem of the poor and of the rural area so meticulously. Some economist may doubt about the implementation of the program but the ordinary citizen/s would appreciate the pro-poor stance of the budget and hope that the different government and non governmental agencies responsible for implementation of the programs will execute the measures correctly.

An ordinary citizen .


1. Views on budget 2008-2009 « an ordinary citizen - June 23, 2008

[…] in implementation also.[PA] An ordinary citizen elaborates on the social safety net in the budget […] Possibly related posts: (automatically generated)Random shots number 35.The 2008 Budget Poster […]

2. Zisan - April 18, 2009

thanks 4 d information

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