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The World Bank (WB) is set to provide US$200 million worth of assistance to ensure accountability and transparency in Bangladesh's social safety-net programmes (SSNPs), officials said, after completing the negotiations on Thursday.
The Department of Social Services (DSS) will spend US$75 million to uplift its capacity in SSNP disbursement while the Ministry of Finance (MoF) $8.0 million to introduce "dynamic social registry (DSR) system and the remaining $117 million will be provided as budget support for spending on different social-welfare programmes.
"We have completed negotiations with the World Bank on Thursday. We are hopeful of getting the loan within a couple of months," said a senior official at the MoF.
The SSNP drew criticisms over the selection of target beneficiaries and inclusion of some components that served affluent people.
The White Paper committee in its report released recently observed that there were pilferages in the SSNP as 40-50 per cent targeting was incorrect. UNICEF also showed 46 per cent loopholes in the targeting of beneficiaries.
The budget for the current fiscal year (FY2024-25) allocated Tk 1.36 trillion for the SSNP but Tk 365.80 billion from the funds was provided against pensions of the civil servants and Tk 170 billion against agricultural subsidy.
The poverty map of the Bangladesh Bureau of Statistics (BBS) shows that the country's 20.3 per cent population still live below the poverty line.
In her speech at a recent workshop, Social welfare Adviser Sharmeen Murshid raised a question over the purpose of payment of Tk800 only to every beneficiary under the SSNP and said how the target group of people will be benefited with the amount.
She emphasised on the data management system to check the pilferages and quality improvement in the SSNP.
The WB's financial support would be used to develop an automated DSR system, said an official at the social welfare ministry.
Besides, the fund will also be utilised for "cash plus" schemes under which the vulnerable persons and families will get some livelihood and income generating support in addition to their regular allowances or stipend under the ongoing SSNPs, she said.
Under the system, the vulnerable and aspirant people across the country would be able to add themselves to the SSNP through an online DSR system.
The government is trying to make strides in expanding social protection programmes to reduce vulnerability of the poor people through this financial support from the Washington-based lender, she added.
By scaling up cash-based programmes with complementary "cash plus" services - a bundle of coordinated livelihoods and human capital augmentation interventions like tailored training, stipend, social care services, counseling, psycho-social support, productive grants - the country can have a stronger impact on poverty reduction, the officials said.