Additional SRD 2.5 billion annually for social safety net

The draft version of the government’s Crisis and Recovery Plan which was presented this week includes a plan aimed at putting a social safety net in place for the nation in the period 2021-2023. The government already spends about SRD 1 billion on lending a helping hand to vulnerable groups. The new plan will add an additional SRD 2.5 billion to this figure. Old age pension, child allowance and welfare were raised in November 2020. But the governments wants to do more for the people by introducing school transport for students free of charge, infant formula subsidy, emergency aid for poor families and subsidy for selected groups to help cover the electric bills. The new plan also includes the resumption of the tax cut of

SRD 750 for state employees, welfare for the unemployed, food programs and schoolbag programs for poor families. These measures will be introduced this year as soon as the plan has been approved by parliament. Additional measures will be introduced in 20222 after the introduction of Value-Added Tax (VAT).