Nagad welcomes rise in social safety net allocation

Mobile financial service provider Nagad has welcomed a government move in the budget for fiscal year 2023-24 to increase the social safety net allocation. 

Finance Minister AHM Mustafa Kamal proposed a budgetary allocation of Tk 1,26,272 crore for social security programmes, which is a little over 11 per cent higher than the current fiscal year's Tk 1,13,576 crore.

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The allocation is 16.58 per cent of the budget and 2.52 per cent of gross domestic product, said a press release.

The finance minister has also proposed increasing the number of beneficiaries by over 8.5 lakh, which is a very timely move to give a breathing space to the financially insolvent who are grappling with the rising costs of daily necessities.

He has also proposed that monthly allowances be raised by Tk 50 to Tk 200 in different categories of safety net allowances, read the budget documents.

"This timely move will give poor people some relief during this tough time. Digital disbursements of such funds are done promptly while ensuring transparency," said Tanvir A Mishuk, founder and managing director of Nagad.

"From the beginning Nagad had been the first choice for the government in disbursing government allowances, education stipends and other cash aid as we ensured transparency by plugging all anomalies," he added.