In the proposed budget for FY2022-23, the government has allocated Tk82,745 crore as subsidies for fuel, electricity, gas, and fertilizer.
In his budget speech, Finance Minister Mustafa Kamal said, "There is pressure on subsidy/incentives management by the government. In the budget for FY2021-2022, the allocation for subsidy and incentive expenditure was Tk. 53,852 crore. But due to the rise in prices of fuel and fertilizer in the international market, the government had to increase subsidy/incentives expenditure on fuel, electricity, gas, and fertilizer. As a result, the estimates of subsidy and incentives expenditure on the revised budget of FY2021-2022 had to be increased to Tk. 66,825 crore (1.70 percent of GDP)."
"This expenditure has been increased to Tk. 82,745 crore (1.90 percent of GDP) in the initial estimate of the budget for FY2022-2023," he added.
He further said, considering the price trend of oil, gas, and fertilizer in the international market, the estimated subsidy/incentives spending can be 15-20 percent higher than the initial estimates, which may pose a challenge in the budget management for the next fiscal year.