Subsidy allocation set to fall, incentives to rise

Subsidy allocation in the upcoming 2026-27
budget may decline significantly compared to the revised budget of the current
fiscal year, with a cut of around Tk19,000 crore from actual spending in FY25.
According to the finance ministry officials,
they expect subsidy spending to ease if global fuel and fertiliser prices fall
following the end of the Iran war. The government may also further adjust gas
and electricity tariffs in the coming fiscal year.
Subsidy expenditure in FY2024–25 stood at Tk108,673
crore, while the revised allocation for the current fiscal year is Tk95,031
crore. The proposed allocation for FY2026–27 is Tk89,538 crore, down from
Tk88,920 crore in the original budget of the current year.
The finance ministry classifies subsidies on
gas, electricity and food under the subsidy head, while agricultural subsidies
are recorded under social safety net programmes. Food subsidies are partly
split between both categories.
Meanwhile, incentives for exports, jute exports
and remittances are expected to rise to Tk16,025 crore, up from Tk15,225 crore
in the current budget.
Finance and Planning Minister Amir Khosru Mahmud
Chowdhury is set to table the national budget for FY2026-27 in the House
tomorrow afternoon.















