Nagad, the mobile financial service wing of the Bangladesh Postal Department, has welcomed the government's move to raise the allocation for social safety net programmes in the proposed budget for the 2021-22 fiscal.

Finance Minister AHM Mustofa Kamal has proposed to increase the social safety net allocation by 17.83 percent to Tk 107,624 crore, of the proposed Tk 6.04 trillion budget and 3.11 percent of the country's gross domestic product (GDP).

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In the 2020-21 fiscal, the size of social safety net budget was some Tk 95,574 crore, which played a crucial role in the fight against the pandemic. In the proposed budget, 14 lakh new citizens are brought under the ambit of the social safety net.

During the pandemic, the disbursement of various government financial assistance through MFS, especially by Nagad, played an important role. It also inspired cashless transactions that helped contain the spread of the virus, according to a release.

In the current fiscal, Nagad disbursed 75 percent of the allowances under the social safety net programmes of the Social Welfare Department. The second largest MFS carrier of the country also disbursed majority portions of Prime Minister's Eid aid twice and the allowances for Covid-affected farmers, fisherman and others. 

With these efforts, Nagad has now proved to be a game changer in the disbursement of government financial assistance. 

On the proposed increase in the social safety net, Nagad's Managing Director Tanvir Ahmed Mishuk said, "To ensure transparency and speedy disbursement of funds, Nagad is now the government's first choice."

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"Prime Minister Sheikh Hasina last year directed all departments to disburse government allowance through Nagad. Following the directive, the government's relevant offices started disbursing their allowances through Nagad, which increased government oversight on the process."

Moreover, if the social safety net funds are disbursed through MFS, then it helps digitalisation of the financial sector and strengthen socio-economic factors, he added. 

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"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 too," the MD said.