[{"bbox": [96, 153, 1164, 233], "category": "Text", "text": "The main objective of this strategy is to improve the design and delivery of social protection schemes to reduce leakage and enhance targeting. This includes consolidating programmes, improving coordination among implementing agencies, and establishing a robust system for progress and results monitoring."}, {"bbox": [96, 233, 1164, 366], "category": "Text", "text": "The current social protection system includes about 115 programmes financed through the national budget and managed by over 39 Line Ministries/Divisions, which will certainly require the rationalization of the overall NSSS. The EU contribution through the new Budget support programme will play a pivotal role in this regard. Over the last five years, budgetary allocation for social protection increased from 14.21% of expenditure in FY19/20 to 16.58% of expenditure in FY23/24 (EUR 10.52 billion, equivalent to 2.52% of GDP)."}, {"bbox": [96, 366, 1164, 470], "category": "Text", "text": "However, a significant portion of the social protection budget is allocated to non-poor programmes, such as the Civil Services Pension and interest payments on National Savings Certificates (NSC). In FY 2024, these allocations constitute around 31% of the total social protection budget, with 22% going towards the Civil Services Pension and 8.9% towards NSC interest. As a result, the effective allocation for the poor is only 0.78% of GDP."}, {"bbox": [96, 471, 1164, 524], "category": "Text", "text": "If we consider the six years average lifecycle allocation, old age population received 71.64% of the social protection budget while children under 5 only 3.69%."}, {"bbox": [96, 524, 1164, 681], "category": "Text", "text": "Since 2021, the European Union has consistently raised these issues in all policy dialogue platforms with the Government. While there has been progress in increasing coverage for early childhood programmes, the GoB has not removed non-poor programmes from the budget. This indicates decisions made at a political level beyond the control of the government bureaucracy. Over the next two years, the EU will leverage its leadership in the DPs platforms to revitalize this topic. The EU aims to explore common actions with the DPs and engage in direct policy dialogue with the Prime Minister's Office."}, {"bbox": [96, 681, 1164, 816], "category": "Text", "text": "The Cabinet Division ensures NSSS coordination, but no ministry is currently responsible for overall sector policy development and coordination. The Ministry of Social Welfare should take over this responsibility in 2026, but no concrete action has been taken. Some ministries, like Ministry of Women and Children Affairs (MoWCA) and Ministry of Labour and Employment (MoLE) have limited capacity in planning and executing programmes, and there is a shortage of skilled human resources to manage the digital transformation."}, {"bbox": [96, 816, 1164, 999], "category": "Text", "text": "The NSSS and its Action Plan 2 will end in June 2026. However, the GoB has yet to share a plan with the DPs for studies and consultations to develop the new strategy. ILO, with MoLE and the Asian Development Bank (ADB) has initiated an Assessment Based National Dialogue<sup>7</sup> exercise for the working-age population. The EU has encouraged the Cabinet Division to share a roadmap with clear milestones leading to the new strategy. Specifically, the EU demands an inclusive and participatory process for the strategy development and promotes the inclusion in the NSSS (or in a separate strategy) of a clear inclusive social insurance model, outlining specific criteria for each branch of the social insurance<sup>8</sup>."}, {"bbox": [96, 1000, 1164, 1055], "category": "Text", "text": "On the positive side, the Government has progressed on institutional<sup>9</sup> and programmatic reforms, thanks also to the EU budget support and its policy dialogue."}, {"bbox": [133, 1055, 586, 1079], "category": "Text", "text": "Recent progress in institutional reforms includes:"}, {"bbox": [127, 1080, 1164, 1240], "category": "List-item", "text": "* ✓ The development of a full-fledged Single Registry MIS, which now hosts data for over 30 million NID-verified beneficiaries and links with 17 life cycle-based social protection programmes. It provides reports on budget utilization, benefits disbursement, targeted areas, and beneficiary profiles. It can cross-check socioeconomic information across programmes to reduce double-dipping. However, it still faces challenges in accurately targeting beneficiaries. More programmes' MISs need to be linked, policymakers have to envisage solutions for programmes that do not use NID for identity verification and develop a double-dipping policy."}, {"bbox": [127, 1240, 1164, 1291], "category": "List-item", "text": "* ✓ The expansion of the G2P system, which is now linked with 27 cash transfer programmes, covering 88% of cash beneficiaries."}, {"bbox": [127, 1292, 1164, 1427], "category": "List-item", "text": "* ✓ In the area of Monitoring and Evaluation, Cabinet Division issues annual reports assessing the Line Ministries progress against their targets, as included in the NSSS Action Plan 2 and has launched an M&E dashboard for social protection reforms. Additionally, the GoB uses the Core Diagnostic Instrument framework to evaluate social protection system performance and has developed an M&E framework to be revised by June 2024. The Single Registry MIS contributes to monitoring the system and informing policy decisions."}, {"bbox": [85, 1501, 1144, 1551], "category": "Footnote", "text": "<sup>7</sup> The ABND exercise assesses whether the social protection floor is a reality for the entire population of a country and how it can be extended to all members of society. Policy gaps and implementation issues in the social protection system are identified."}, {"bbox": [85, 1550, 1144, 1596], "category": "Footnote", "text": "<sup>8</sup> These criteria include: institutional setup; governance structure, definition of coverage, clarification of contribution, and clarification of benefits."}, {"bbox": [85, 1597, 1144, 1647], "category": "Footnote", "text": "<sup>9</sup> Institutional reforms refer to the basic digital infrastructure to improve the management of the social protection system: specifically Single Registry MIS, G2P platform, M&E framework and Central Grievance Redress System."}, {"bbox": [1038, 1682, 1144, 1706], "category": "Page-footer", "text": "Page 8 of 32"}]