Nagad welcomes incremental safety netallocation

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

The Finance Minister AHM Mostofa Kamal has proposed to increase the social safety net allocation by 17.83 percent to Tk 107,624 crore. With this additional budget allocation, the size of social safety net would reach 3.11 percent of gross domestic product of the country. The government also brought 14 lakh new citizens under the social safety net program.

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. 

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 present twice and the allowance for Covid affected farmers, fisherman and others. 

With all these efforts Nagad is now established 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 net, 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. The Prime Minister Sheikh Hasina last year directed to disburse government allowance through Nagad. Following the directive, the government's relevant offices started disbursing their allowance 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 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."

Transparency, accountability be ensured for MFS pay-out