FY25 Budget Increases Power and Fertilizer Subsidies by 57.9%

Economic Tag: Govt.

In the revised FY25 budget, subsidies for power and fertilizer will surge by 57.9% to Tk 90,000 crore. Fertilizer subsidies will increase by 64.7% to Tk 28,000 crore, and power subsidies by 55% to Tk 62,000 crore, while LNG subsidies remain at Tk 6,000 crore. Arrears of Tk 49,128 crore were partially cleared with special bonds. The government avoided power price hikes amid inflation exceeding 9% since March 2023. Officials may adjust prices if inflation drops below 6.5%. The government aims to reduce costs by 10%, saving Tk 11,444 crore, and shift to gas-based power generation to lower subsidy dependency.

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