Dhaka, May 10 (V7N)- The government is preparing to increase subsidies in key sectors including energy, food security, and social protection in the upcoming national budget, as global economic instability continues to put pressure on domestic markets.

Officials said the move comes amid ongoing international uncertainty, particularly disruptions in fuel supply caused by tensions in the Middle East, which have affected energy imports and industrial production costs.

The proposed budget is expected to raise allocations for electricity and gas subsidies, with energy support increasing compared to the revised budget of the current fiscal year. Authorities say the aim is to stabilize power supply and reduce pressure on consumers and industries.

The Bangladesh Energy Regulatory Commission and finance policymakers are reportedly prioritizing continued support for electricity generation and gas distribution amid rising import costs.

In the food sector, subsidies will also be expanded to ensure food security for low-income groups. Programs such as Open Market Sales (OMS), Trading Corporation of Bangladesh (TCB) operations, and other food assistance schemes are expected to receive around Tk 10,000 crore in allocation.

Additional funds will also go toward fertilizer imports and agricultural production support, along with expanded coverage for Family Card and Farmer Card programs aimed at assisting vulnerable households and farmers.

Economist Mustafa K. Mujeri commented that implementing around 150 development projects simultaneously is a major challenge, but noted that initiatives like the Family Card could help improve targeted assistance.

Former caretaker government adviser Hossain Zillur Rahman warned that long-term development planning must consider debt sustainability, noting that rising interest payments have become a growing burden due to a long-term debt-driven development model.

He emphasized the importance of medium-term policy signals for stable economic growth.

According to budget projections, around 1.7% of GDP—equivalent to over Tk 116,000 crore—may be allocated for subsidies, incentives, and cash support programs in the 2026–27 fiscal year.

The government also plans to maintain borrowing targets at levels similar to the current fiscal year while slightly increasing incentives for export sectors, jute products, agriculture, and remittance inflows.

END/SMA/AJ