Changes inofbudget

allocation social
safety net programs
after Covid outbreak

ECO102- MACROECONOMICS
Section: 11

Course instructor: Sarah Enamul Haque

(Department of Economics)

Group D:
● Badria Faiza Noor (2020-3-10-133)
● Sammi Akter Eme (2020-1-10-300)
● Mohammad Mahmudul Hasan (12020-1-10-093)
● Sifat Mahamud (2020-1-10-458)
● Syed Hizbullah Numan (2020-1-10-398)
Social Safety Net 2019-2020 & 2020-2021
Financial year
Social safety net program is a combination of programs made for protecting people of every sector from social
and economic risks. This service provides temporary help to the lower income people or the people going
through some natural disaster. In Bangladesh, social safety net service is generated by the Bangladesh
Government. Their aim is to provide treatment facilities, education, residents with money, helping people with
disabilities and other issues. Every year Bangladesh Government imposes a significant amount in the national
budget list for these safety programs. There are 132 programs running in 64 districts till now. Recently after this
covid-19 outbreak there are changes in the 2020-2021 budget list for social safety net compared to 2019-2020’s
budget list.

Various Allowances
SL. No. Description Budget 2019- Budget 2020-
2020 2021
1 Old Age Allowance 2640 2940
2 Allowances for the Financially Insolvent Disabled 1390.5 1620
3 Allowances for the Widow, Deserted and Destitute 1020 123
Women

Budget 2019-2020 Budget 2020-2021

3500
3000
2500
2000
1500
1000
500
0
1 2 3

According to this line chart, programs including in operating parts 2019-2021 budget conditions. There are
slight changes in the graph. This program includes allowances for old, financially insolvent or disabled and for
widow etc. there is a slight increase in 2020-21 budget than 2019-2020’s budget. Government has increased the
budget as their only source to have some money is only the government during the pandemic.
 Food Security and Employment Generation Program
SL. DESCRIPTION BUDGET (taka in crore)
NO.

2019-2020   2020-2021

1 Vulnerable Group Feeding (VGF) 1956.91 940.1

2 Gratuitous Relief (Food) 543.59 3062.58

3 Work for Money (WFM) 750 1500

4 Food friendly Program 2624 3844.26

2019-2020   2020-2021
4500
4000
3500
3000
2500
2000
1500
1000
500
0
1 2 3 4

According to this line chart the comparison between 2019-20 and 2020-21’s budget for food security and
employment generation programs is shown. Blue line is showing the 2019-20’s while the green one for 2020-
21. VGF is working to give relief goods to people who are suffering from natural calamities and as right now
our biggest fear is the pandemic situation and there’s no natural calamities, they lowered the budget from the
previous one. But during this pandemic they have increased the budget of gratuitous food relief for the people
who cannot work because of lockdown. Besides, they have increased the budget of WFM during the pandemic
because people lost their jobs so they are trying to recover it by placing an online platform for work. Budget for
food friendly program as people are suffering from hunger during lockdown in pandemic.

Stipend Programs
SL. No Description Budget 2019-20 Budget 2020-2021

1 Secondary & Higher Secondary Stipend 1957.74 3964.08

Stipends are offered for a wide variety of purposes – the majorities are offered to support some type of
continuing education. Such as Secondary & Higher Secondary Stipend, Stipend for Disabled Students and many
more.
 4500
4000
3500
3000
2500
2000
1500
1000
500
0
Budget 2019-20 Budget 2020-2021

According to this line chart, we can see stipend programs budget before and after pandemic under the social
safety net of 2019-2020 and 2020-2021.We can say the stipend program budget has been increased in 2020-
2021 from 2019-2020. That happened because Secondary & Higher Secondary Stipend and Prime Minister's
Education Support Trust budget has increased by the government due to covid-19 epidemic.

Cash/Transfer of Materials
SL. Description Budget Budget
NO 2019-20 2020-21
1 housing support for homeless 25 2157.5
2 Interest subsidy for small industries and service sector 0 3000
enterprise affected by corona
3 Assistance for partial interest waiver of deferred loan of 0 2000
commercial bank due to coronavirus
4 Disbursement of cash among target population to address 0 500
corona risk
5 Savings certificate interest assistance 0 6625
6 Agricultural Subsidy 0 1900
7 Agricultural Rehabilitation 160.85 2500
8 Grants for the family of the government. employee died in 0 322.44
service
 Budget 2019-20 Budget 2020-21

0
1 2 3 4 5 6 7 8

According to this line chart, we see the cash/transfer materials budgets conditions before and after pandemic.
We can see in the diagram many sectors' budgets in 2019-20 were below 500 crores but in 2020-21 they cross
their previous budget. There are also some sectors whose budgets were 0 these sectors are like subsidy and
interest waiver related. The highest budget rise in this diagram is Savings certificate interest assistance. Overall,
every sector's budget has increased after the pandemic.

Credit Support Program

SL. NO Description Budget 2019-20 Budget 2020-21

1 Interest free for micro credit 58.00 158.00

program

for RSS, RMC & Urban Centre

2 Employment generation program 0.00 3000

3 Palli-Karma-Sahayak-Foundation 785.00 589.17

4 Social Division Foundation 235.00 60.00

Budget 2020-21 Budget 2019-20

3500
3000
Taka in Crore

2500
2000
1500
1000
500
0
1 2 3 4 5

According to this line chart, we can see how much the budget changes in Credit Support Programs before and
after the pandemic situation. The highest budget changed in 2020-21 which is a refinancing scheme for low-
income farmer /small traders that increased 3000 crores but in 2019-20 it was 0. On the other hand, the budget
has decreased for the Palli-Karma-Sahayak Foundation and Social Development foundation in 2020-21 than the
previous otherwise other budget increased.
 Various Funds and Programs
SL. Description Budget 2019-2020 Budget 2020-
NO. 2021
1 Funds for Climate change 300 100
2 Welfare Fund for the Oppressed Women and Children 50 0
3 Block Allocation for various program 1463 0
4 National Service 681.91 576.85

Budget 2019-2020 Budget 2020-2021

1600
1400
1200
1000
800
600
400
200
0
1 2 3 4
According to this line chart, the blue line here shows the 2019-2020 budget and the red line shows the 2020-
2021 budget Here we can see funds for climate change have decreased in large numbers. Climate change fund
was established to effectively address the cause and consequences of climate change. Then there was a nice
amount of budget for the welfare of oppressed women and children and after the COVID outbreak no amount of
money was allocated to this fund. The same thing has happened with block allocation for various programs also.
And there is a huge decrease in national service funds after the COVID outbreak.

Development Sector Activities (Ongoing Development Programs)

SL. Description Budget 2019- Budget 2020-2021
No. 2020

1 School Feeding Programs in poverty Stricken areas 474.59 282.5

2 Skills and Employment program in Bangladesh 371.54 80

3 Development of the living standard of the marginal community 182.7 12

of Bangladesh

4 H Maternal, neonatal, child and adolescent’s Health 1036.59 715.77

5 H National Nutrition services  96 142.5

6 Preferential village water supply 502.17 74

7 Infrastructure and livelihood improvement in Hoar & costal area 1023.23 209.13
 Budget 2019-2020
1200

1000

800

600

400

200

0
1 2 3 4 5 6 7

According to this line chart, we see the condition of the development sector activities budget before and after
pandemic. Here some changes are reflected as some sectors are increased and some are decreased. In 2019-2020
the highest budget is the sector H Maternal, neonatal, child and adolescent’s Health and Infrastructure and
livelihood improvement in Hoar & coastal area but that budget after the pandemic was decreased. After the
pandemic national nutrition sector’s budget has increased. Here we can see that the development sector
activities have been allocated less than the previous year’s budget. Due to the pandemic all the elements of this
sector as a whole have had this effect however, most of the element’s budget has fallen.

 Development Sector Activities

SL. Description Budget Budget
No 2019-20 2020-2021
1 Training and rehabilitation of the Disabled, Widows, Orphans
(destitute, helpless, backward) and the Ultra Poor 0 45.92
2 Investment Component for Vulnerable Group Development
Program (lCVGD) (2nd Phase) 0 52.67
3 Project on increasing the capacity of adaptation to climate
change to counter salinity of Coastal communities, especially
women (Green Climate Fund) 0 110.6
4 Multi-sector Project to address the Rohingya crisis on an
emergency basis 0 205
5 Providing working capital to improve the socio-economic
condition of Weavers and modernization of handlooms 0 25
6 Integrated Livestock development to improve the socio-
economic and quality of life of the Backward Minorities living
in the plain-land 0 46.25
7 Increase the cotton cultivation in Chittagong Hill Tracts and
alleviation of poverty of farmers 0 6.9
 Budget 2019-20
250

200

150

100

50

0
1 2 3 4 5 6 7

According to this line chart, there was no budget for development sector activities in 2019-2020 and then in
2020-2021 the government has decided to introduce budget for development sector of social safety net
programs due to covid-19 pandemic, that’s why we can see big changes from nil to a high scale.
In today’s picture, Bangladesh is facing a terrible unemployment problem. Besides, the rate of unemployment
has increased in 2020-21 to 6% which was approximately 4.15% in 2019-2020 because of covid-19 outbreak. In
other countries like the USA, there are allowances for unemployed people. In 2020, during after the covid
outbreak former president Donald Trump has introduced special allowances for the people who lost their jobs.
But the Bangladesh Government could not impose this allowance because of mass unemployment. But it is the
most needed social security program for us both for pandemic or without pandemic. However,
In conclusion, by analyzing all this data we can say due to the corona pandemic there have been a lot of ups and
downs in 2020-2021 then 2019-2020 budget allocation in social safety net programs. Covid-19 pandemic has
been affected in every sector. That's why the government decided to increase the Social safety net programs
budget in 2020-2021.

Reference
https://mof.portal.gov.bd/sites/default/files/files/mof.portal.gov.bd/page/672e3d4d_09bb_4205_9afd_843de55481d1/Safet
y%20net%202020-21%20English.pdf

https://www.dol.gov/