'Tackling corruption in SNP could save half of govt spending'

Tackling corruption and inefficiency in the Social Safety Net Programme (SNP) could save half of the government’s spending in this sector, said Planning Adviser Dr Wahiduddin Mahmud.

He stated that, half of the individuals currently receiving benefits of SNP meant for the poor are not actually poor.

“If this issue were addressed, the saved funds could either be redirected or used to double the allowances for the deserving beneficiaries,” the adviser said.

He made these remarks on Sunday responding a question at a press briefing following the meeting of the Executive Committee of the National Economic Council (ECNEC) at the NEC auditorium in the capital.

The meeting presided over by Chief Adviser Dr Muhammad Yunus approved a project titled “Strengthening Social Protection for Improved Resilience, Inclusion and Targeting(SSPIRIT)” with an estimated cost of Tk 9.04 billion.

The World Bank-supported project will allocate Tk 3.15 billion for administrative costs to facilitate a cash transfer program worth Tk 5.89 billion, benefiting 4.5 million recipients.

For every Tk 100 transferred under the project, approximately Tk 54 will be required for operational expenses.

Additionally, the project has proposed over Tk 1.94 billion for consultancy services, with some earning as much as Tk 600,000 per month.

The advisor said that, a significant portion of the funds allocated to the social security sector cannot truly be considered as part of social security.

“The government spends a large sum on various programmes such as allowances for the elderly, freedom fighters and the disabled. If so much money is being spent on administration, what is actually reaching those in need?” he said.

The advisor also acknowledges that, this problem has persisted for years. “In my own research, I have found that at least 50 per cent of the people receiving these allowances should not be beneficiaries.”

The advisor blamed the development partners behind the high consultancy costs and said, “When foreign loans are taken, they often come with consultants, many of whom are not actually qualified for the tasks at hand.”

“I have witnessed this pattern throughout my career and have fought against it. However, this particular project is less problematic, as we are introducing a social registry for the first time,” the advisor concluded.

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