Subsidy allocation set to fall, incentives to rise
The government may also further adjust gas and electricity tariffs in the coming fiscal year
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.
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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.
