Govt widens social safety-net schemes in budget
Friday, 12 June 2009
FE Report
The government has widened its overall social safety-net programmes for the fiscal year (FY) 2009-10 in order to reduce poverty through protecting the poor people from all sorts of social, economic and natural shocks.
"Social security and empowerment, and employment generation are indispensable elements of a poverty reduction programme. We have started our work to bring down the poverty rate by 15 per cent within 2021, Finance Minister AMA Muhith said in his budget speech Thursday.
He also informed the parliament that almost 15.2 per cent of the total non-development and development budget, which is almost 2.5 per cent of GDP, would be allocated for the social safety net and social empowerment programmes.
The minister said the government's overall Social Safety Net Framework has been divided into four categories. They are: providing of special allowances for different underprivileged sections, employment generation through micro-credit and different fund management programmes, food security based activities for managing the consequences of disaster, and providing education, health, training and technical assistance to make the new generation capable and self-reliant.
Under the social safety-net programmes, Muhith proposed to enhance the monthly old age allowance from Tk 250 to Tk 300, and widen the beneficiary coverage from 2.0 million to 2.25 million. This will increase the allocation from existing Tk 6.0 billion in FY 2008-09 to Tk 8.10 billion in the budget for FY 2009-10, he said.
The finance minister also proposed to increase the allocation to Tk 3.31 billion in the next fiscal year from Tk 612 million of the current fiscal year for raising the allowances for destitute women to Tk 300 per person.
The minister also proposed to increase the monthly rate of allowances for the insolvent freedom fighters to Tk 1,500 from current level of Tk 900, and increase number of beneficiaries from 1,00,000 to 1,25,000. For this purpose, the minister proposed to allocate Tk 2.25 billion for the FY 2009-10.
He also proposes an allocation of Tk 936 million for the FY 2009-10 to increase the monthly allowance of Tk 300 for the insolvent-disabled, and also increase the number of beneficiaries from 2,00,000 to 2,60,000.
Besides, the minister proposed to increase the allowance for poor lactating mothers by Tk 50 to Tk 350, which will require an allocation of Tk 336 million for the FY '10. He also proposed to allocate Tk 250 million for launching a similar programme namely 'allowance for lactating low income working mothers in urban areas.'
"We are proposing to increase the allocation for the capitation grant to the tune of Tk 60.19 million for 16,000 orphan children in public orphanages," he said in his budget speech. Thus, the total allocation will stand at Tk 233.90 million, he said, adding, in addition, 45,000 private orphanages and 48,000 orphan children will also be given capitation grant.
For this purpose, the allocation will increase by Tk 25.20 million and the total allocation will stand at Tk 403.20 million, while Tk 56.70 million more will be spent for the welfare of the shelter-less street children, he mentioned.
In order to tackle any possible disaster, Tk 1.33 billion will be earmarked for different sectors, he said.
Terming micro-credit an 'important vehicle to reduce poverty', the finance minister said, "An initiative will be taken to design an integrated policy for fund management. Our main task will be to make different existing fund management authorities accountable."
The minister proposed to allocate Tk 200 million for the Women and Freedom Fighters Self-employment Fund, Tk 20 million for the acid burnt women and rehabilitation of physically challenged/disabled and Tk 1.00 billion for assistance to poultry farms.
Besides, the government is taking an initiative to establish a one-stop service to provide health service and ancillary facilities to the disabled persons, he said. For this purpose, Tk 54.10 million has been allocated in the budget for FY 2009-10 for launching a new programme titled 'disabled service and assistance centre', the minister added.
Besides, Palli Karma Shahayak Foundation will distribute Tk 2.0 billion, received from foreign sources in the next fiscal year as micro credit.
The government has widened its overall social safety-net programmes for the fiscal year (FY) 2009-10 in order to reduce poverty through protecting the poor people from all sorts of social, economic and natural shocks.
"Social security and empowerment, and employment generation are indispensable elements of a poverty reduction programme. We have started our work to bring down the poverty rate by 15 per cent within 2021, Finance Minister AMA Muhith said in his budget speech Thursday.
He also informed the parliament that almost 15.2 per cent of the total non-development and development budget, which is almost 2.5 per cent of GDP, would be allocated for the social safety net and social empowerment programmes.
The minister said the government's overall Social Safety Net Framework has been divided into four categories. They are: providing of special allowances for different underprivileged sections, employment generation through micro-credit and different fund management programmes, food security based activities for managing the consequences of disaster, and providing education, health, training and technical assistance to make the new generation capable and self-reliant.
Under the social safety-net programmes, Muhith proposed to enhance the monthly old age allowance from Tk 250 to Tk 300, and widen the beneficiary coverage from 2.0 million to 2.25 million. This will increase the allocation from existing Tk 6.0 billion in FY 2008-09 to Tk 8.10 billion in the budget for FY 2009-10, he said.
The finance minister also proposed to increase the allocation to Tk 3.31 billion in the next fiscal year from Tk 612 million of the current fiscal year for raising the allowances for destitute women to Tk 300 per person.
The minister also proposed to increase the monthly rate of allowances for the insolvent freedom fighters to Tk 1,500 from current level of Tk 900, and increase number of beneficiaries from 1,00,000 to 1,25,000. For this purpose, the minister proposed to allocate Tk 2.25 billion for the FY 2009-10.
He also proposes an allocation of Tk 936 million for the FY 2009-10 to increase the monthly allowance of Tk 300 for the insolvent-disabled, and also increase the number of beneficiaries from 2,00,000 to 2,60,000.
Besides, the minister proposed to increase the allowance for poor lactating mothers by Tk 50 to Tk 350, which will require an allocation of Tk 336 million for the FY '10. He also proposed to allocate Tk 250 million for launching a similar programme namely 'allowance for lactating low income working mothers in urban areas.'
"We are proposing to increase the allocation for the capitation grant to the tune of Tk 60.19 million for 16,000 orphan children in public orphanages," he said in his budget speech. Thus, the total allocation will stand at Tk 233.90 million, he said, adding, in addition, 45,000 private orphanages and 48,000 orphan children will also be given capitation grant.
For this purpose, the allocation will increase by Tk 25.20 million and the total allocation will stand at Tk 403.20 million, while Tk 56.70 million more will be spent for the welfare of the shelter-less street children, he mentioned.
In order to tackle any possible disaster, Tk 1.33 billion will be earmarked for different sectors, he said.
Terming micro-credit an 'important vehicle to reduce poverty', the finance minister said, "An initiative will be taken to design an integrated policy for fund management. Our main task will be to make different existing fund management authorities accountable."
The minister proposed to allocate Tk 200 million for the Women and Freedom Fighters Self-employment Fund, Tk 20 million for the acid burnt women and rehabilitation of physically challenged/disabled and Tk 1.00 billion for assistance to poultry farms.
Besides, the government is taking an initiative to establish a one-stop service to provide health service and ancillary facilities to the disabled persons, he said. For this purpose, Tk 54.10 million has been allocated in the budget for FY 2009-10 for launching a new programme titled 'disabled service and assistance centre', the minister added.
Besides, Palli Karma Shahayak Foundation will distribute Tk 2.0 billion, received from foreign sources in the next fiscal year as micro credit.