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The finance ministry has proposed a major shift in how social safety net programmes are delivered, suggesting direct cash transfers instead of fragmented, project-based aid.

The proposal came as the Ministry of Disaster Management and Relief sought Tk 79.43 billion for the next fiscal year—slightly higher than the current allocation—to run programmes such as food-for-work, test relief and humanitarian assistance.

However, the Finance Division recommended consolidating these schemes into a unified cash support system to reduce duplication and improve targeting.

Under the proposal, each eligible family would receive at least Tk 2,500 per month, or Tk 30,000 annually. With the current budget, around 2.65 million households could be covered.

Officials said the idea is to replace overlapping programmes—often criticised for inefficiencies—with a transparent and streamlined system that delivers support directly to beneficiaries.

The proposal was discussed at a tripartite meeting on the medium-term budget framework, where emphasis was also placed on aligning early government programmes with policy priorities.

Economists have long flagged weaknesses in existing safety net schemes, citing poor targeting and lack of reliable beneficiary data.

“Funds often fail to reach genuinely needy families due to weak databases, while influential groups sometimes capture benefits,” said an economist.

He suggested that direct cash transfers through a well-managed system would improve efficiency and ensure support reaches the intended recipients.

A review by the finance ministry found that many families currently receive benefits from multiple programmes, while others remain excluded—reducing the overall impact of public spending.

The proposed reform would keep the overall allocation intact but change how funds are used, shifting from multiple small schemes to a single, results-oriented programme.

Officials, however, cautioned against fully phasing out food-based support, noting that programmes like food-for-work still play a role in stabilising market prices. A balanced approach combining cash and food assistance has been advised.

The move also aligns with the government’s broader plan to expand a “family card” system, which is being piloted to deliver monthly cash support to selected households through a centralised database.