Substantial hike in subsidies, incentives, interest proposed

The government's spending on subsidies, incentives and interest payments is proposed to be increased considerably in the fiscal year (FY) 2022-23.
The volume of interest has been proposed to be enhanced to Tk 803.75 billion for the next FY as compared to the revised amount of Tk 712.44 billion for the outgoing FY.
The government had earmarked the amount of interest at Tk 685.89 billion in the original budget for FY '22.
However, the allocation made in the FY'23 as interest payments is 11.85 per cent of the total budgetary allocation, Finance Minister AHM Mustafa Kamal mentioned in his budget speech in parliament on Thursday.
On the other hand, the government has proposed to increase the subsidies and incentives to Tk 827.45 billion (1.90 per cent of GDP) in the budget for FY '23.
"There is a pressure on subsidy/incentives management by the government," the finance minister said.
In the budget for FY 2021-2022, the allocation for subsidies and incentives was Tk 538.52 billion, he said, adding that the government had to raise the allocations for subsidies and incentives on fuel, electricity, gas, and fertiliser.
As a result, the estimates of subsidies and incentives expenditure on the revised budget of FY 2021-22 had to be increased to Tk 668.25 billion (1.70 per cent of GDP), he added.

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