B Mirror Desk : Certain programs, such as savings bond interest and shelter initiatives, are being removed from the social security sector. Concurrently, new initiatives, including financial support for the families of martyrs and those injured during the July coup, will be incorporated. The new budget for this sector outlines numerous reforms. Consequently, while some allowances and the number of beneficiaries in the eight existing social security programs have seen increases, the overall budget allocation for this sector is set to decline in the upcoming 2025-26 fiscal year, as reported by the Ministry of Finance. The task force established by the interim government to reassess the economic strategy has indicated that 21 programs within the social security sector do not align with the goal of protecting the impoverished.
Among these, pension schemes for retired government employees, agricultural subsidies, and savings bond interest payments are included. For the current fiscal year 2024-25, Tk 72,695 crore has been designated for these programs, representing 53 percent of the total allocation for this sector. These initiatives do not conform to the government’s National Social Security Strategy (NSSS). As a result, the task force has advised a real-term increase in social security funding, excluding programs that are inconsistent. These recommendations were outlined in the Task Force’s report on Redesigning Economic Strategies and Assembling Necessary Resources for Sustainable Development without Discrimination, published last February. The need for restructuring the social security sector has also been echoed by various donor agencies, domestic and international research institutions, and economists over an extended period.
An official from the Finance Department, when approached by the media regarding budget formulation, stated that the social security sector is set to undergo restructuring in the upcoming fiscal year. This decision follows a recent meeting of the Advisory Council Committee on Social Security Programs, chaired by Advisor Dr. Salehuddin Ahmed, held at the Secretariat. It has been determined that the allocation for interest on savings certificates will be moved to a different sector within the operating budget. However, other initiatives, such as pensions for government employees and agricultural subsidies, will remain within this sector. Additionally, financial support for the families of martyrs and those injured during the July Uprising will also be included. Certain projects, including the shelter initiative, will be removed from this sector.
The Annual Development Program (ADP) is still pending finalization, making it difficult to specify the exact number of projects that will be added or removed. Following these adjustments, the overall allocation for this sector is expected to see a slight reduction. Sources from the Finance Department indicate that the allowances and the number of special beneficiaries in the eight ongoing social security programs will increase in the next fiscal year. Allowances are set to rise from Tk 50 to Tk 150 to enhance the living conditions of mothers, children, the elderly, widows, the disabled, and marginalized communities.
The stakeholders indicated that the previous Awami League administration had been exaggerating the budget for this sector each fiscal year to present the social security allocation as exceeding the gross domestic product (GDP). Currently, the government is executing social security initiatives through 140 programs across 26 ministries. For the fiscal year 2024-25, an allocation of 136,000 crore taka has been designated, representing 17.06 percent of the national budget. Of this amount, approximately 90 billion taka has been earmarked for interest payments on savings certificates. Excluding this and several other programs, the allocation for this sector in the forthcoming budget for the fiscal year 2025-26 may be reduced to 125,000 crore taka.
