Social safety net almost same

The proposed budget for the FY25-26 is unlikely to provide any significant relief for inflation-hit common people of the country.

Finance Adviser Dr Salehuddin Ahmed in his budget proposal on Monday announced some changes in income tax, VAT and duty structure, and raised the ceiling of safer net allowances for some categories but this may help very little to ease the burden of high prices on people in general.

Talking to a cross-section of people, the FE correspondent found no enthusiasm among them over the budget proposals.

Many expected that there will be some strategic creativity through which a roadmap will be provided for providing cushion to the inflation-affected people whose savings have been eroded over the months due to high prices of essentials.

According to the resource distribution figure, 4.7 per cent of the budget is allocated for social security and welfare, but the safety net has not widened.

The finance adviser proposed Tk 1167.31 billion for social safety net programmes and the amount stands at Tk 912.97 billion excluding the pension.

"I expected a different kind of initiative with regard to social security allocations, but the proposed budget contains the same old structure," said economist Dr Selim Raihan of SANEM, a policy research think tank.

"There are some initiatives but that is done within the previous formats. So I don't find anything different in this budget," he said on the allocations on social security and human development sectors.

Allocation for social assistance benefit (cash) in the next budget has risen to Tk 231 billion from Tk 207 billion. The allocation for social assistance benefit (kind) has increased to Tk 63 billion from Tk 61 billion.

The allowance for elderly people has gone up from Tk 600 to Tk 650, from Tk 550 to Tk 650 for widows and from Tk 850 to Tk 900 for disabled people, while mother and child assistance allowance is set at Tk 859 from Tk 800.

mirmostafiz@yahoo.com