Considering power generation a major driver of economic growth, the government is going to enhance subsidy for the sector. According to finance ministry data, the power sector will get the highest subsidy worth Tk 9,500 crore in the FY20. The amount is Tk 300 crore more than that of the fund subsidized in the current fiscal.
The government will allocate Tk 42,100 crore for subsidy, incentive, and credit or cash in loans in the budget for fiscal year 2019-20, raising the overall assistance by Tk 4,296 crore from Tk 37,804 allocated in the current fiscal. Of the total amount, Tk 23,600 crore will be allocated as subsidy, Tk 13,500 crore as incentive, and Tk 5,000 crore as credit.
The food sector is going to get the second highest subsidy amounting to Tk 4,500 crore, which is Tk 104 crore less than that in the ongoing fiscal. According to ministry data, incentives, and cash in loan in the FY20 will be same like current fiscal though the subsidy will increase. The amount for subsidy in the current fiscal is Tk 19,304 crore but it will rise to Tk 23,600 crore, up Tk 4,296 crore in the coming fiscal.
Though the government is going to allocate a substantial fund in the power sector as subsidy, it will not provide subsidy to the Bangladesh Petroleum Corporation to buy fuel oil. Besides, considering the huge stocks of rice in the country the government slashed its subsidy in the food sector, sources said.
Apart from this, a total of Tk 9,600 crore will be allocated as subsidy for other sectors in the next fiscal. The amount of subsidy in this regime in the current fiscal is Tk 5,500 crore.
Finance Minister AHM Mustafa Kamal will place the budget for fiscal 2019-20 in the Jatiya Sangsad on June 13 next. The total outlay of the new budget will be Tk 525,000 crore. It will be the first budget of the ruling Awami League government in its 3rd consecutive term while it is same for new finance minister too.
