The government’s expenditure on social security allowance has nearly double set in two years. By the end of the next fiscal year 2022-23. Therefore, raising questions about sustainability of such cash transfer schemes.
Besides direct cash transfer, the government spends heavily on various other social security schemes. Including medical insurances and subsidies which also create pressure on the state coffers. And the government’s spending on such schemes is going up at a time. When it has failed to collect the targeted revenue. And is increasingly relying on domestic and external loans for financing the public expenditure.
While presenting the budget for the fiscal year 2021-22. Therefore, the erstwhile KP Sharma Oli government increased all social security allowances by 33 percent. Including the elderly allowance to Rs4,000 per month from Rs3,000 per month.
The Sher Bahadur Deuba-led coalition government. Which came to power in July last year, then further took another decision on the elderly allowance.
In the fiscal year 2020-21, the government spent Rs 68.61 billion on social security allowances. According to the Department of National ID and Civil Registration.
