Budget 2024-25

Increased benefit for social welfare beneficiaries

June 28, 2024 10:20 am

The transport scheme for the elderly and people with disabilities is being restructured.

Finance Minister Professor Biman Prasad says currently, a monthly bus fare allowance of $25 is provided to around 48,000 beneficiaries.

He says however, many elderly individuals and people with disabilities either lack access to bus services or are unable to use them due to physical limitations.

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“To bring greater flexibility and help our people with disabilities and the elderly, effective from 1 August we will convert the bus fare allowance into a cash allowance of $25 per month. All our social pensioners above the age of 70 years and those on disability allowance will now receive a $25 per month cash allowance instead of the current bus card top-up. Pensioners over the age of 70 will now receive a monthly cash allowance of $150, an increase from the current $125 per month.”

Prasad adds that other social support measures, including the 50% electricity subsidy and free water for households with an annual income below $30,000, will continue.

He says $10 million is being provided for the electricity subsidy which supports around 55,000 households while the free water subsidy for around 40,000 households will be catered for at a cost of $10 million.

Prasad says upon assuming office, the government had increased the social welfare budget from $158 million to approximately $200 million, marking an increase of over $40 million last year.

He says this increase enabled the government to enhance welfare allowances and pensions significantly.

He says individuals above the age of 70 saw a 25 percent increase in their welfare allowance, while those aged between 60 and 69 received a 50 percent increase and government pensions and care fund allowances increased raised by 15 percent.

In the 2024-2025 budget, the government has allocated $200 million to the Ministry of Women, Children, and Social Protection to continue the increased social welfare allowances of around

104,000 beneficiaries under the Family Assistance Scheme, Social Pension Scheme, Care Protection Allowance, Disability Allowance, Rural Pregnant Mother Food Allowance and Transport Assistance Scheme.