News Desk :
The government is considering doubling the power sector subsidy to Tk18000 crore in the upcoming budget of FY 22-23.
The overall subsidy and incentive allocation is estimated to rise by Tk 16,620 crore to Tk 57045 crore in the upcoming budget, Finance Division officials said on Tuesday, reports UNB.
In the current budget the subsidy in the power sector was fixed at Tk 9,000 crore. This year, the subsidy is being doubled in this sector. However, in the revised budget, the subsidy in the power sector has increased by Tk 3,000 crore to Tk 12,000 crore for FY-22.
The subsidy and incentives have continued increasing in the budget every year. As a result the allocation is also being increased. Such as in the budget of FY 22, Tk 40425 crore allocated as subsidy and incentive which was increased by Tk12857 crore to Tk53 282 crore in the revised budget.
The allocation in the subsidy, incentives and loan assistance is estimated to increase by 26.13 per cent or Tk 27910 crore to Tk 177145 crore in the upcoming budget due to adverse impact of Covid-19 pandemic and Ukraine-Russia war, the budget officials said.
In the budget of FY 22, the allocation of these three sectors was Tk149235 crore.
According to the estimates of the finance division, the size of the budget of the upcoming FY 23 is around Tk 6.78 trillion. Out of this, the total expenditure in the three sectors of subsidy, incentive and cash loan has been estimated at Tk177145 crore.
