Social safety nets have been enlisted as key instruments to reduce poverty and inequality in
many developing countries. The safety net programs are designed to provide support for
the vulnerable sections of society. Despite having a large number of safety net programs,
the rate of poverty reduction and inequality prevalence is not satisfactory. This paper
analyses the impacts of safety net programs on inequality of developing countries
particularly of Bangladesh. The study examines time series data of the expenditure on
safety nets and the rate of inequality. The analysis suggests that no clear association is
found between safety nets and inequality. Initially, inequality has shown an increasing
trend with expansion of safety net expenditures, then the inequality trend is declining. Also,
inequality in consumption was relatively lower than that in income.