Tk2,010cr for two separate poverty databases

The government is set to spend Tk2,010 crore on two separate projects to identify poor households and develop social protection databases, raising concerns over duplication, public spending and the sustainability of previous data-gathering initiatives.

One of the two projects is under the Ministry of Social Welfare, which has proposed an additional Tk1,794 crore for identifying 1.35 crore disadvantaged people and introducing Family Smart Cards. Meanwhile, the Finance Division has proposed a separate project costing Tk216.43 crore to develop a Dynamic Social Registry and strengthen coordination and accountability in social protection programmes.

Both initiatives aim to improve the identification of eligible beneficiaries and the delivery of social safety net support, prompting economists to question why two separate government entities are developing databases for similar purposes rather than working towards a unified system.

The concern is heightened by the failure of an earlier National Household Database (NHD) project implemented by the Bangladesh Bureau of Statistics (BBS), which reportedly consumed Tk642 crore without producing a usable national database of poor households.

Dr Zahid Hussain, former lead economist at the World Bank’s Dhaka office, said that separate Dynamic Social Registries maintained by two ministries could create disputes over which database should be considered authoritative.

Economists might favour one list while non-governmental organisations might rely on another, potentially complicating policy decisions, he said.

Hussain argued that the BBS should have been responsible for developing and maintaining the registry, as household information requires regular updating.

He also warned that the government might eventually need another project to reconcile the two databases, adding to public expenditure without necessarily resolving the underlying problem.

Social welfare ministry project costs Tk2,699cr

The Ministry of Social Welfare's project, titled Strengthening Social Protection for Improved Resilience, Inclusion and Targeting, was originally approved at Tk904.17 crore. Following its first revision, the total project cost is set to rise to Tk2,699.15 crore, an increase of Tk1,794 crore.

The revised project will be implemented by the Department of Social Services under the Ministry of Social Welfare, with funding from the government and the World Bank. The financing plan includes Tk1,514.11 crore from the government and Tk1,185 crore in World Bank loans.

The project period will remain July 2025 to June 2030.

Its principal objectives include developing a Dynamic Social Registry, expanding social protection services for poor households, strengthening cash transfer programmes and providing livelihood support.

The project targets 1.35 crore beneficiaries under four selected government allowance programmes, 60% of whom are expected to be women. It also aims to provide livelihood support to 25 lakh beneficiaries, half of them women. Under the proposed expenditure plan, Tk821.90 crore is allocated for survey data collectors and Tk550 crore for Family Smart Card production equipment. Another Tk188.84 crore is earmarked for 18 consulting firms, while individual consultants will receive Tk40.40 crore.

The project also includes Tk80 crore for domestic training, Tk10 crore for travel, Tk50 crore for festivals, Tk12 crore for data storage and Tk12 crore for printing and binding.

According to the Planning Commission, a new policy decision was taken after the project’s approval to implement Family Cards under the government's social protection programmes. At a meeting of the cabinet committee on Family Cards on 15 June 2026, it was decided that the pilot programme would be coordinated with the existing project.

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Finance Division proposes another registry

Separately, the Finance Division has proposed the Social Protection Digital Transformation and Coordination (SPDTC) project, with a total estimated cost of Tk216.43 crore.

Of this amount, Tk119.07 crore would come from the government and Tk97.36 crore from a World Bank loan. If approved by the Executive Committee of the National Economic Council (ECNEC), the project would run until March 2031. The initiative aims to improve beneficiary targeting, expand coverage, strengthen coordination among ministries and improve the delivery of national social protection programmes.

It also envisages better data-sharing among government platforms, real-time dashboards, automated verification and improved management information systems to reduce manual errors and increase transparency.

However, the proposed expenditure has raised questions within the government. Around Tk 68 crore has been allocated for consultancy services, prompting the Planning Commission to seek justification for the amount and clarification on whether domestic or foreign consultants would be hired.

At a recent Special Project Evaluation Committee meeting, officials also sought explanations for retaining certain allowances despite earlier recommendations to remove them. The project proposes spending nearly Tk5 crore on seminars and conferences, including expenditure financed through foreign loans.

The project remains subject to the approval process.