ZCZC
BSS-02
NAGAD-SAFETY NET
Nagad welcomes incremental safety net allocation
DHAKA, June 4, 2021 (BSS) – Nagad, the mobile financial service wing of the Bangladesh Post Office, has welcomed the government’s move to increase allocation of the social safety nets in the proposed budget for fiscal year 2021-22.
Finance Minister AHM Mustafa Kamal has proposed to increase the social safety net allocation by 17.83 percent to Taka 107,624 crore in the next fiscal year.
With this additional budget allocation, the size of social safety net would reach 3.11 percent of gross domestic product (GDP) of the country.
The government also brought 14 lakh new citizens under the social safety net program.
In the current fiscal year (2020-21), the size of social safety net was Taka 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 transaction which helped defuse spreading of the virus, said a press release.
In the current fiscal, Nagad disbursed 75 percent of the allowance under the social safety net program of the Social Welfare Department. The second largest MFS carrier of the country also disbursed majority portions of Prime Minister’s Eid gifts twice and the allowance for Covid affected farmers, fishermen and others.
With all these efforts, Nagad has been established as an example in the industry and game changer in disbursement of government financial assistance. The beneficiaries also don’t need to spend any extra money to cashout such funds.
Regarding the proposed increase in the social safety nets, Nagad’s 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 last year directed to disburse government allowance through Nagad,”
He said following the directive, the government’s relevant offices started disbursing their allowances through Nagad which increased government’s oversight on the process.
Moreover, if the social safety net funds are disbursed through MFS, then it helps digitize financial sector and strengthen socioeconomic factors.
“We believe that day is not far when Nagad will digitalise the entire government financial allowance service and the beneficiaries will enjoy their deserved money with ease. We hope the government will disburse the social safety net funds through Nagad this year, “he added.
BSS/PR/GM/GMR/1212 hrs