Nagad Welcomes Increased Social Safety Net Allocation in Budget 2023-24
Nagad has expressed its appreciation for the government’s decision to increase the allocation for social safety net programs in the national budget for the fiscal year 2023-24.
The Finance Minister, AHM Mustafa Kamal, has proposed a budgetary allocation of Tk 1,26,272 crore for the upcoming fiscal year, which represents a little over an 11 percent increase compared to the current fiscal year’s Tk 113,576 crore.
As a result, the proportion of social security allocation in relation to the total budget allocation will be 16.58 percent, while it will account for 2.52 percent of the GDP.
The Finance Minister has also recommended an expansion of the beneficiary base by more than 850,000 individuals. This timely step aims to provide some relief to the impoverished population, which is struggling with the rising costs of essential goods.
The budget documents propose raising the monthly allowances by Tk 50 to Tk 200 in various categories of safety net allowances.
Tanvir A Mishuk, the founder and managing director of Nagad Limited, welcomed this decision and stated, “This timely action will offer some respite to the underprivileged during these challenging times. By ensuring transparency and addressing any discrepancies, digital disbursements of these funds are promptly carried out.”
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Since the beginning, Nagad has been the government’s preferred choice for distributing government allowances, education stipends, and other forms of financial aid. The company’s commitment to transparency has played a crucial role in this regard, as it has successfully eliminated any irregularities.
In 2021 and 2022, Nagad effectively disbursed 75 percent of all social safety net allowances, including those for the elderly, widows, individuals with special needs, students with special needs, the Bede community, and the transgender community.
Furthermore, Nagad is responsible for distributing 100 percent of primary education stipends, stipends under the Prime Minister’s educational assistance trust, living standard allowances for tea garden workers, allowances for backward communities, disabled allowances, and other forms of assistance.
During the Covid-19 pandemic, Nagad also twice disbursed the majority of the Prime Minister’s Eid gifts, amounting to Tk 2,500 each, among impoverished families. These accomplishments have solidified Nagad’s position as the government’s preferred choice for financial disbursements.
