The finance department is apprehensive about the increase in expenditure in the subsidy sector.

 

The finance department is worried about the growth in expenditure within the subsidy region. because the commodity price inside the global marketplace isn't reducing to the preferred degree soon. Fertilizer, wheat, LNG gasoline and rice should be imported at elevated charges. If the global marketplace situation isn't right, the subsidy in these sectors is probably to exceed one lakh crore rupees. however within the contemporary (2022-23) monetary 12 months, total subsidy is allocated 82 thousand 745 crores. The finance branch has estimated that the subsidy expenditure may also growth through 15 to 20 percentage extra than the fixed allocation. news from related sources.

 

It is also acknowledged that there may be strain on the authorities to lessen subsidies to get loans from the worldwide economic Fund (IMF). lately, the delegation of this donor agency for the duration of their go to to Bangladesh had a meeting with the applicable ministries and departments and suggested to lessen the subsidy. another delegation of the company will visit Dhaka in September to talk about the lending difficulty. in keeping with the ones involved, that point may improve questions on the improved fee of subsidy.

 

Meanwhile, Finance Minister AHM Mustafa Kamal has recognized 6 sorts of demanding situations for the cutting-edge economic 12 months. this kind of is to finance the multiplied charge of subsidy because of boom inside the rate of gas, power and fertilisers. He told the media that the expenditure in the subsidy area is probably to be greater than the allocated allocation.

in line with assets inside the finance department, it is predicted that the expenditure on subsidies will growth similarly, however it relies upon at the global marketplace situation. numerous preparations had been made in case extra funds are required on this zone. the primary education is that the extra and unnecessary prices of all ministries and departments have been stopped. No extra prices are allowed. 2d, there are regulations on spending cash on numerous initiatives. money may be stored from those two sectors. With which additional subsidy demand can be met.

 

Former Senior Finance Secretary Mahbub Ahmed instructed Jugantar that IMF strain is not the principle difficulty in reducing subsidies. it has been underneath dialogue for a long time that the subsidy need to be reduced. I assume subsidy allocation can be reduced by means of 10 percent every year. i have given this thought earlier than. however if the subsidy is adjusted by growing the charge an excessive amount of in a single soar, it will increase the struggling of the people. He in addition stated that lowering subsidy is carefully related to growing sales series. Subsidy cash can be arranged if the earnings will increase. however recollect, agriculture and power have to be subsidized—now not heavily. Now the government ought to recognition on growing revenue. Weaknesses in revenue series should be diagnosed and necessary measures should be taken on an urgent basis.

 

Meanwhile, to lessen the pressure at the subsidy, the rate of fertilizer according to kg has been increased through Tk 6 to Tk 22 these days. nonetheless, urea fertilizer has to be imported from the global market at Tk 81 in line with kg. As a result, the government has to pay a subsidy of Tk 59 in line with kg even after growing the charge at the domestic level. And counting this can require more than the Rs 15,000 crore subsidy for fertilizers in the modern-day economic yr.

 

 

18 thousand crores of subsidy has been given to the energy sector this year. gas oil is being used for energy era. together with gasoline oil in the international marketplace, its charge has also been expanded within the domestic marketplace. but, from the government's coverage-making level, it has already given a glimpse of the increase in power expenses on the consumer level. it's miles stated that the manner of growing the rate of electricity is going on very quickly. it's miles assumed that it's going to not be possible to hold the subsidy inside the exact allocation by way of importing gas and gasoline from the sector market and the usage of it for strength era.

 

 

2 lakh tonnes of rice and 5 lakh tonnes of wheat will be imported from abroad inside the contemporary financial yr. those food might be allotted at low cost in various packages of negative human beings. The cost for this has been envisioned at 2 thousand 579 crores. however due to the Ukraine-Russia warfare, the price of wheat inside the international market improved at an bizarre price. besides, the import charge of rice has also accelerated because of the boom within the value of the united states dollar anywhere, which include Bangladesh. As a end result, it's going to now not be viable to satisfy the subsidy of Rs. The finance branch thinks that the subsidy may even growth in this area.

 

This yr, the subsidy on LNG gas import has additionally been kept above Rs 13,000 crore. but because the charge of this product has elevated inside the world market, subsequently the subsidy will exceed the allocated allocation.

 

On Friday, fuel oil charges had been multiplied by using a mean of 47 percent. in step with the finance branch, gas oil has no longer been backed for the last 7 years. No fuel subsidy has been given within the cutting-edge economic year either. but BPC is importing at high rate and selling at low fee. This extended the loss of BPC. Its price is expanded to lessen it.