The government of Bangladesh has witnessed a significant increase in subsidies and incentives provided to various sectors over the past five years, with expenditure quadrupling during this period. However, the calculation and disclosure of these subsidies have raised concerns among industry experts. Notably, subsidy data in the power and energy sector has been undisclosed for the past three years, despite substantial support being granted to power and liquefied natural gas (LNG) imports.
Agriculture, electricity, energy, and food sectors are among the major recipients of these subsidies. In the fiscal year 2021-22, subsidies and incentives accounted for 21.92% of the government’s operational expenditure, amounting to a staggering 70,798 crores. The current fiscal year also indicates a significant increase, with estimated expenditure reaching 1,28,980 crores. The government’s intention to reduce subsidies in order to borrow from the International Monetary Fund (IMF) further highlights the need to address the subsidy calculation and disclosure loopholes.
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