• Thursday, Oct 28, 2021
  • Last Update : 03:06 pm

Subsidy outlay to increase by 21.16%

  • Published at 01:52 am April 20th, 2016
  • Last updated at 01:52 am April 20th, 2016
Subsidy outlay to increase by 21.16%
Compared to the revised budget outlay, the government is planning to raise its total subsidies outlay by 21.16% for the next fiscal year, despite dropping the option of fuel subsidy amid falling global oil prices, sources have said. Food subsidy is set to be increased with the Food Ministry planning to introduce rural food rationing from next fiscal year, but consumers might soon have to pay more to get electricity as the government will be cutting down on power sector subsidies. Finance Division placed a proposal on this regard at a budget management committee meeting, presided over by Finance Minister AMA Muhith. According to the proposal, the next fiscal year’s subsidies outlay will be Tk22,900 crore with a 21.16% growth compared to the revised budget subsidies outlay of Tk18,900 crore. The revised outlay has been slashed by Tk6,603 crore from the existing Tk25,503 crore outlay, according to the budget proposal. “There will be no subsidy allocation for import of fuel oil from the next fiscal year as Bangladesh Petroleum Corporation has earned huge profits in the last couple of years by selling fuel oil at high prices compared to global prices,” Senior Finance Secretary Mahbub Ahmed told the Dhaka Tribune. He said the government would not increase the outlay of power subsidy for the next fiscal year, while the Power Division has been asked to reduce its system loss and curb the inefficiencies in the sector. Agriculture subsidy will not be decreased as that amount is being considered as a future investment for the agriculture sector, Mahbub said. According to the proposal, food subsidies for the next fiscal year will be increased to Tk2,000 crore from existing Tk1,864 crore, while agriculture subsidies would be Tk9,000 crore – the same as the current fiscal year. Next fiscal’s year subsidies for Bangladesh Power Development Board would be Tk6,000 crore, down from the existing Tk8,000 crore. The export sector will get cash incentives worth Tk3,500 crore, while this year it was Tk3,000 crore. The rest of the Tk2,400 crore of allocations would be distributed among jute, gas and other sectors. Last August, Bangladesh Energy Regulatory Commission increased the average price of electricity by 2.93% and natural gas by 26.29% at consumer level. Meanwhile, a week ago, State Minister for Power Nasrul Hamid told media that a notice about fuel price cut would be floated within seven to 10 days. Octane price will come down by Tk10-15 per litre while diesel cost will be reduced by Tk4-5. The prices of fuel oil will be adjusted further in the future, the state minister said.
Facebook 50
blogger sharing button blogger
buffer sharing button buffer
diaspora sharing button diaspora
digg sharing button digg
douban sharing button douban
email sharing button email
evernote sharing button evernote
flipboard sharing button flipboard
pocket sharing button getpocket
github sharing button github
gmail sharing button gmail
googlebookmarks sharing button googlebookmarks
hackernews sharing button hackernews
instapaper sharing button instapaper
line sharing button line
linkedin sharing button linkedin
livejournal sharing button livejournal
mailru sharing button mailru
medium sharing button medium
meneame sharing button meneame
messenger sharing button messenger
odnoklassniki sharing button odnoklassniki
pinterest sharing button pinterest
print sharing button print
qzone sharing button qzone
reddit sharing button reddit
refind sharing button refind
renren sharing button renren
skype sharing button skype
snapchat sharing button snapchat
surfingbird sharing button surfingbird
telegram sharing button telegram
tumblr sharing button tumblr
twitter sharing button twitter
vk sharing button vk
wechat sharing button wechat
weibo sharing button weibo
whatsapp sharing button whatsapp
wordpress sharing button wordpress
xing sharing button xing
yahoomail sharing button yahoomail