The budget for the upcoming fiscal year (FY), 2019-20, proposed by Finance Minister A H M Mostafa Kamal on Thursday, contains an allocation of Tk 334,590 million for subsidies and incentives, which is 6.4 per cent of the budget.
Apart from public services, most of these subsidies are usually meant for social safety net programmes and agriculture sector. However, according to the budget proposals, subsidy for social security and welfare sector has been slashed to Tk 258,840 million, from Tk 270,790 million in the previous FY.
Public services sector is the highest receiver of subsidy, as it has got Tk 195,710 million.
Agriculture sector has received Tk 90,010 million as subsidy, and Tk 35,740 million has been allocated for social security and welfare sector. On the other hand, defence service has got subsidy to the tune of Tk 4,700 million in the proposed budget, and public order and safety has got Tk 8,430 million.
The overall budgetary allocation for social security and welfare is Tk 297,690 million. A large portion of it will go to various safety net programmes, like - allowances for old-age people, freedom-fighters and under-privileged group.
The finance minister said the government has allocated Tk 743,670 million for social sector in FY 20, which is 14.21 per cent of the total budget and 2.58 per cent of the country's Gross Domestic Product (GDP).
He proposed a string of proposals to expand the present safety net programmes, including increasing state honorarium for valiant freedom-fighters from Tk 10,000 to Tk 12,000, and raising the number of recipients of elderly allowance from 4.0 million to 4.4 million.
Mr Kamal also proposed raising the number of recipients of allowance for widows and victims of domestic violence from 1.4 million to 1.7 million, and increasing the number of beneficiaries of allowance for insolvent persons with disabilities from 1.0 million to 1.545 million.
Moreover, the number of recipients of stipend for disabled students is increased from 90,000 to 100,000, and the rate of stipend is increased from Tk 700 to Tk 750 for each of primary students, from Tk 750 to Tk 800 for secondary students, and from Tk 850 to Tk 900 for higher secondary students.
The number of beneficiaries of third gender livelihood development programme is proposed to increase to 6,000. An additional 20,000 beneficiaries from 'Bede' and other disadvantaged communities is proposed to be included in the current list of 64,000 persons.
The number of recipients of financial assistance programme for patients, suffering from cancer, kidney, liver cirrhosis, congenital heart diseases and paralysed due to stroke, is proposed to be increased from 15,000 to 30,000.
"The number of beneficiaries of livelihood development programmes for tea-garden workers will be increased from 40,000 to 50,000. The number of beneficiaries of maternity allowances for poor mothers will be raised from 700,000 to 770,000," the finance minister proposed.
"Besides, the number of beneficiaries under lactating mothers' assistance programme will be increased from 250,000 to 275,000," he added.
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