26 May 2024

Safety net allocations inflated

By Redoy K

Bangladesh’s allocation for social safety net programs has increased over the years, but nearly a third is spent on civil servant pensions and savings certificate interest payments. Economists argue these should not be categorized as social safety nets, as they inflate the allocation meant for protecting the financially vulnerable population. They recommend redesigning the programs to genuinely support low-income and marginalised groups amid high inflation.