Cash-based social safety net programmes: Benefits to be reviewed annually as per CPI

The government is set to review the benefits provided under the cash-based social-safety-net programmes once a year in keeping with the Consumer Price Index (CPI) to make such operations time-befitting for the beneficiaries, sources say.

The decision was made at a high-profile meeting held at the Finance Division recently.

Currently, there are around 95 programmes under the social safety net, and some 21 are cash-based.

The meeting suggested three common methods to bring the benefits under systemic and periodic review.

CPI, Gross National Income (GNI) per capita, and the weighted average of CPI and GNI per capita are expected to be used for the review.

An official suggested using CPI to increase the allowance so that inflation would not erode it.

Besides, through GNI, social benefits could be reviewed in line with economic prosperity, he said.

Both inflation and economic prosperity could be accommodated in the review by using the weighted average of CPI and GNI per capita, he added.

Six key cash-based programmes are likely to be brought under review every year.

Of them, old age allowance, widow and husband abuse allowance, and disability allowance and education stipend are operated under the social welfare ministry.

Besides, life quality improvement for backward communities, and mother and child support are implemented by the Ministry of Women and Children Affairs, while employment for the extremely poor is operated under the disaster management and relief ministry.

A senior official who attended the meeting said forming an inter-ministerial working committee, with the additional secretary of budget-1 of the Finance Division as the convener, had been recommended.

Representatives from various state agencies, including the Cabinet Division, will be included in the committee.

The high-profile panel may use the CPI as an economic indicator to conduct periodic reviews. It may review the allowance amount at least once a year, sources say.

The government has allocated Tk 1.16731 trillion for social security programmes in the 2025-26 fiscal year, which is about 14.78 per cent of the total budget and 1.87 per cent of the Gross Domestic Product (GDP).

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