To relieve the financial burden on the public, the government have increased power and fertiliser subsidies under revised FY25 budget by 57.9%, taking the total allocation to BDT 90,000 crore. This would benefit farmers and electricity consumers while also keeping a control on costs during the current high inflation. The fertiliser subsidies will be increased by 64.7% to BDT 28,000 crore, benefitting farmers. This would help keep fertilisers affordable in spite of global price surge. Likewise, subsidy for the power sector has surged by 55% to BDT 62,000 crore as the government has decided not to raise electricity prices to protect consumers from additional financial strain.
The government will also issue special bonds to clear dues in the power sector to cover the rising costs without increasing electricity tariffs. But some experts are warning that escalating subsidies may face financial pressure on the country in the long run. They emphasize the importance of improved efficiency, reduced production expenses, and sustainable measures that minimize reliance on government assistance.
Read more: GQ Ball Pen: Rise and Fall
While this measure brings some short-term relief, economists warn that unless the government adopts the right reforms, the rising subsidy burden may become increasingly unsustainable. While the government’s decision provides stability, the real challenge lies in finding a sustainable solution that balances economic growth with public welfare.
Source: Business Inspection BD
