Nagad, the mobile financial service wing of the Postal Department, welcomed a government move to increase allocation of social safety net in the proposed national budget for 2021-22 fiscal year.
Finance minister AHM Mustafa Kamal has proposed to increase social safety net allocation by 17.83 per cent to Tk 107,624 crore. With this additional budget allocation, the size of social safety net would reach 3.11 per cent of gross domestic product of the country. The government also brought 14 lakh new citizens under the programme, said a press release on Friday.
In 2020-21 fiscal year, the size of social safety net was Tk 95,574 crore which played a crucial role in the fight against the Covid-19 pandemic.
During the entire pandemic, the disbursement of various government financial assistance through MFS, specially by Nagad, played an important role. It also inspired cashless transection which helped to defuse spreading of the virus, said the release.
In the current fiscal, Nagad disbursed 75 per cent of the allowance under social safety net programme of the Social Welfare Department. The MFS carrier also disbursed majority portions of Prime Minister’s Eid present twice and the allowance for Covid affected farmers, fisherman and others, the release added.
Nagad managing director Tanvir Ahmed Mishuk said, ‘To ensure transparency and speedy disbursement of funds, Nagad is now the first choice of the government. Prime minister Sheikh Hasina in 2020 directed to disburse government allowance through Nagad. Following the directive, the government’s offices concerned started disbursing their allowance through Nagad which increased government oversight on the process. Moreover, if social safety net funds are disbursed through MFS, then it helps digitalisation of the financial sector and strengthen socioeconomic factors.’
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