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Sunday, July 2, 2023

Can Government Welfare Schemes in Sri Lanka Overcome Inefficiencies and Discrepancies?

Introduction

The government has implemented various social welfare schemes in Sri Lanka, such as Janasaviya, Samurdhi, and the latest initiative, Aswesuma. Unfortunately, these programs have faced numerous issues related to discrepancies and inefficiencies. Aswesuma, a poverty relief program, was introduced under the International Monetary Fund's (IMF) recommendations. This article aims to explore the current system's shortcomings and propose suggestions for improvement.

The Aswesuma Welfare Benefit Program

President Ranil Wickremesinghe initiated the Aswesuma welfare benefits program as part of the social safety net to address the ongoing economic crisis. The program operates under the supervision of the State Minister of Finance Semasinghe and involves various government agencies, including the Ministry of Finance. It aims to provide financial assistance to the lower-income group, comprising 40% of society, across four categories: transitional, vulnerable, poor, and extremely poor. Families falling into the inferior category are targeted to receive a monthly allowance of Rs. 15,000. Additionally, the program includes subsidies for differently-abled individuals, the elderly, and kidney patients.

 

Issues with the Current System

Lack of Objective Criteria for Beneficiary Identification

One of the significant challenges the welfare program faces is the absence of objective criteria for identifying beneficiaries. The system has become overly complicated, hindering its effectiveness. To rectify this, it is essential to establish clear and transparent guidelines for determining eligibility. Involving an independent agency, such as the Department of Social Services, can ensure unbiased verification and validation of the collected data.

Insufficient Data Management and Verification Methods

The current system needs a reliable database, which contributes to inaccuracies and discrepancies in the allocation of benefits. Developing a certified plan with a comprehensive database to test collected data against objective criteria is crucial to enhance accuracy. Alternative verification methods, such as cross-referencing data with electricity consumption records, can be explored to improve accuracy and mitigate discrepancies.

Inequitable Distribution of Benefits

Reports indicate that nearly 60% of the population in the lowest income brackets still needed to receive the benefits they were entitled to. In contrast, many individuals in higher income brackets received them. This discrepancy highlights the need for fairness and impartiality in distributing welfare benefits. Drawing upon successful examples from countries like India, where digitization and interconnected databases have played a crucial role, Sri Lanka should gradually digitize and collect accurate information to improve the targeting of beneficiaries.

 Recommendations for Improvement

Leveraging Technological Advancements and Data Modelling

To enhance the efficiency of the welfare program, it is recommended to utilize technological advancements and data modeling. A multi-sector data model incorporating activity data can aid in identifying deserving beneficiaries and excluding those who do not require assistance. Specialized tools can facilitate a streamlined application process and enable periodic reassessment of beneficiaries, ensuring the program's integrity and effectiveness.

 Prioritizing the Wellbeing of Vulnerable Individuals

It is vital to prioritize the well-being of vulnerable individuals over political interests. Social welfare should not be used as a tool for political gain but rather as a means to uplift the poor and vulnerable in society. Stakeholders and authorities must initiate comprehensive reforms to strengthen the Samurdhi payment system, ensuring it caters to the genuine needs of the vulnerable population.

 Implementing a Geotech System for Targeted Assistance

Ideally, a Geotech system should be established to identify the specific location and employment status of individuals or families who deserve state support. This system would enable targeted assistance and prevent the misallocation of benefits.

Conclusion

The Sri Lankan government's welfare schemes have shown promise in addressing poverty and economic disparities. However, inefficiencies and discrepancies hinder their effectiveness. The government can create a more efficient and inclusive welfare program by implementing objective criteria for beneficiary identification, improving data management and verification methods, and leveraging technological advancements. It is crucial to prioritize the well-being of vulnerable individuals and work toward a system that truly serves their needs. Only through comprehensive reforms can Sri Lanka ensure that its social welfare initiatives effectively alleviate poverty and uplift the marginalized sections of society.

 

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