Fossil fuel, gas, electricity and chemical fertiliser prices to be adjusted gradually

Fossil fuel, gas, electricity and chemical fertiliser prices will be adjusted gradually and on a small scale, according to the proposed budget for FY23.

While presenting the budget proposal on Thursday (9 June) Finance Minister AHM Mustafa Kamal said, "Our major strategy would be to enhance the supply while reducing the growth in demand. Therefore, import-dependent and less important government expenditures will be stopped or reduced."

"The pace of implementation of the low-priority projects will be lowered while enhancing the implementation of high and medium priority projects. The sales price of fossil fuel, gas, electricity and chemical fertilisers will be adjusted gradually and on a small scale", he added.

The major challenges for the next fiscal year include containing inflation and enhancing domestic investment; financing additional subsidy required for the increased price of gas, power and fertiliser in international markets; utilizing funds available through foreign assistance and ensuring timely completion of high priority projects of ministries/divisions; ensuring timely completion of projects in education and health sectors; increasing collection of local Value Added Tax and raising the number of individual tax-payers and maintaining stability in the exchange rate of taka and keeping foreign exchange reserves at a comfortable level.

"We have to be very pragmatic in addressing the challenges as any failure to address them properly may destabilise the macroeconomic stability", said the minister.

Finance Minister AHM Mustafa Kamal has placed the Tk6,78,064 crore national budget for FY23 at Jatiya Sangsad according top priority to safeguarding marginal people from inflation fuelled by the Russia-Ukraine conflict.

This is the fourth budget of the third consecutive term of the government led by Prime Minister Sheikh Hasina and also the overall 51st budget of the country.

The proposed budget is Tk74,383 crore higher than the original budget size of the FY2021-22 fiscal year, which was Tk6,03,681 crore.